Published by Insider Media
ROLLS-ROYCE LANDS £85M FUNDING FOR LOW CARBON NUCLEAR POWER BUSINESS
Rolls-Royce has landed an £85m funding package from the Qatar Investment Authority (QIA), the sovereign wealth fund of the state of Quatar, for its new low carbon nuclear power business.
Rolls-Royce SMR is building a new technology service to provide affordable, low carbon, nuclear power. According to the business, a single power station will occupy approximately one tenth of the size of a conventional nuclear generation site and power approximately one million homes.
Warren East, chief executive of Rolls-Royce Group, said: "I am tremendously pleased to announce that we have further strengthened our relationship with Qatar, through QIA's investment in the Rolls-Royce SMR business.
"We have successfully raised the capital we need to establish Rolls-Royce SMR and it is encouraging to confirm that the business is now set up to succeed."
QIA will join Rolls-Royce Group, BNF Resources UK Ltd and Exelon Generation Ltd as shareholders in Rolls-Royce SMR, taking a ten per cent share of the equity.
Mansoor bin Ebrahim Al-Mahmoud, chief executive of QIA, said: "QIA is investing in the energy transition and funding the technologies that enable low carbon electricity generation.
"We will continue to seek out investments that align with our mandate to deliver long-term value for future generations through responsible sustainable investments."
Business and energy secretary Kwasi Kwarteng added: "This investment is a clear vote of confidence in the UK's global leadership in nuclear innovation and follows the £210m of government investment in the development in small modular reactors.
"It represents a huge step forward in our plan to deploy more home-grown, affordable clean energy, ensuring greater energy independence for the UK, highly skilled jobs and bringing cheaper, cleaner electricity to people's homes."
The Rolls-Royce SMR business is now fully funded, having secured £490m through commercial equity and UK Research and Innovation (UKRI) grant funding.