Holtec 'scaling back' South Yorkshire investment as SMR nuclear funding cut back in Spending Review

SMRs are seen as the next great innovation in nuclear power. Despite being a fraction of the size of a traditional power plant, they still produce around a third of the energy of an old-fashioned reactor.

Holtec had pledged to build a £1.5bn SMR factory next to Doncaster Sheffield Airport in South Yorkshire, with the region beating off stiff competition from a dozen contenders across the country.

GBN had initially said that three bidders could be chosen for contracts, before later scaling this back to potentially including two separate firms.

However, yesterday, alongside the £14.2bn investment going into the Sizewell C nuclear plant, the Government announced that Rolls-Royce was the sole preferred bidder to build SMRs backed by £2.5bn of taxpayers’ cash.

The iconic company was successful even though it is set to base its SMR factory in the Czech Republic.

Holtec said it was “disappointed” with the decision, and said the “plans for a significant manufacturing facility in South Yorkshire will now be scaled back in size and jobs while being delayed in terms of timeframe”.

It is understood that the decision to only choose one preferred bidder was the result of negotiations in today’s Spending Review.

After a years-long procurement process costing millions of pounds, The Yorkshire Post understands the firm had been feeling quietly confident of securing a position alongside Rolls-Royce.

GBN chair Simon Bowen admitted that “two was the optimum number, but we have to recognise … there’s big affordability challenges”.

South Yorkshire’s Labour Mayor Oliver Coppard said: “I have to admit to some surprise that the government has only selected one bidder to lead that process.

“I’m obviously disappointed by the consequences that decision will have for Holtec, albeit reassured by the strength of our partnership and their continued commitment to South Yorkshire.”

The US firm added: “Despite the outcome from this competition, Holtec remains resolute in its belief that Holtec’s SMR-300 is among the most advanced, safe, and deployable reactor designs in the world.

“Looking ahead, Holtec is intensifying its focus on partnerships with private-sector clients in the United Kingdom that can move at pace and international stakeholders who are seeking proven, scalable SMR solutions.”

While Mr Coppard urged Rolls-Royce to “prioritise” British jobs and workers with its £2.5bn of public funding.

He said: “I look forward to continuing our work with Rolls-Royce SMR, who are working closely with the world-class AMRC [the University of Sheffield Advanced Manufacturing Research Centre], as they develop their programme.

“I would like to congratulate them on their success in the competition process.

“I trust that they will prioritise British jobs and workers in the development of the £2.5bn programme, particularly those in South Yorkshire.”