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Nuclear energy

UK and US Unite to Boost Nuclear Power Sector

Strategic Insights

— 2 min read

British Prime Minister Sir Keir Starmer and US President Donald Trump have announced plans to collaborate on a "golden age" of nuclear power plant construction, with a focus on privately financed projects. The move aims to simplify the approval process, recognizing each other's safety regimes and paving the way for new, cutting-edge reactor designs. This partnership has sparked investment interest, with companies such as British Gas owner Centrica and X-Energy considering plans to build up to 80 advanced modular reactors, capable of delivering electricity and heat to both industrial businesses and millions of homes.

However, industry veterans have noted that the deals are currently just loose commitments, with companies yet to sign binding contracts or exchange serious sums of cash. A new report by pro-growth campaign group Britain Remade argues that nuclear power can offer "abundant, clean, reliable electricity" and lower bills for consumers, but only if the Government overhauls its red tape. The report highlights that the UK is now "the most expensive place in the world to build nuclear power stations," due to excessive regulatory requirements and planning rules.

Key Takeaways:

  • The US and UK governments have promised to work together to deliver a "golden age" of privately financed power plant construction.
  • Companies such as British Gas owner Centrica and X-Energy are considering plans to build up to 80 advanced modular reactors.
  • The UK is currently the most expensive place in the world to build nuclear power stations, due to excessive regulatory requirements and planning rules.
  • A new report by Britain Remade argues that nuclear power can offer abundant, clean, reliable electricity and lower bills for consumers, but only if the Government overhauls its red tape.
  • The Office for Nuclear Regulation (ONR) is enforcing a regime that often "gold-plates" safety standards unnecessarily and at enormous cost.
  • US firms are interested in building nuclear power facilities in the UK, but the lack of clarity from regulators and planning authorities is hindering progress.
  • The ONR should explicitly state its minimum requirements to give developers certainty about what they need to do.
  • Aligning with US regulators could speed up the approvals process significantly, but also exposes the Government to political controversy.

Statistics:

  • The UK is currently the most expensive place in the world to build nuclear power stations, with Hinkley Point C projected to cost £46bn or more than £12m per megawatt.
  • Recent nuclear plants around the world have been built at costs significantly lower than Hinkley Point C, with pressurized reactors in South Korea and China costing around £2m per megawatt.
  • Nuclear power plants take up less space, with Hinkley Point C covering 430 acres, compared to 250,000 acres for solar farms and 130,000 acres for onshore wind farms.
  • The average worker in a nuclear power plant is exposed to 0.18 millisieverts per year, equivalent to eating about 4lb of Brazil nuts.
  • The dose of radiation which would kill about half of those receiving it in a month is 5,000 mSv.

Sources:

  • Britain Remade: "Nuclear Power: Unshackling the Potential"
  • Office for Nuclear Regulation (ONR)
  • EDF: "Hinkley Point C"
  • US Nuclear Regulatory Commission (NRC)
  • Wood Mackenzie: "Nuclear power costs: a comparison of global markets"

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