The £28 billion Leeds-based National Wealth Fund (NWF) — formerly called the UK Infrastructure Bank — announced on Monday up to £599 million of financing to support Rolls-Royce SMR with the development of its small modular reactors (SMRs).

The National Wealth Fund’s financing is expected to contribute to creating around 1,000 jobs at Rolls-Royce SMR.

Nuclear is one of the 10 sectors identified by the National Wealth Fund in its recent Strategic Plan as offering the most catalytic opportunities for investment. The transaction also marks the National Wealth Fund’s second financing in nuclear, following its lending to Sizewell C announced in July.

“Following the end of a competitive process, Great British Energy-Nuclear (GBE-N) and Rolls-Royce SMR today signed a contract that enables work to start immediately on the delivery of three Rolls-Royce Small Modular Reactors (SMRs),” said the National Wealth Fund.

“The National Wealth Fund’s financing will support the progression of the generic design of the new SMR technology, with Rolls-Royce SMR having already moved to the third and final stage of the Generic Design Assessment led by the UK’s independent nuclear regulators.

“SMRs offer a new route to clean, homegrown power, helping shape a more resilient domestic energy system. Each Rolls-Royce SMR will generate 470 megawatts of stable low-carbon electricity, enough to power the equivalent of around a million of today’s homes.”

National Wealth Fund CEO Oliver Holbourn said: “Today’s announcement marks a significant moment for the future of our nuclear industry. The development and deployment of Rolls-Royce SMR’s technology here in the UK will create thousands of jobs and pave the way for an affordable, cleaner, and more secure energy system.

“This is exactly what the National Wealth Fund has been established to deliver, backing promising homegrown projects and technologies that will deliver transformational impacts.”

Rolls-Royce SMR CEO Chris Cholerton said: “This contract unlocks the delivery of our first three units at Wylfa and brings certainty to the UK SMR programme.

“With plans for up to six further units in Czechia, this announcement makes Rolls-Royce SMR the only company with multiple commitments in Europe.

“We are transforming the way nuclear projects are delivered, to give greater cost and schedule certainty with a standardised, factory-built approach.

“This project is important to the UK’s energy security and will power up our business and the UK supply chain, and we are excited by the opportunity and are focused on successful delivery”.