Great British Nuclear: Modular Reactors

Question

14:37:00

Asked by

To ask His Majesty’s Government what progress Great British Nuclear has made with its plans to deploy small modular reactors and advanced modular reactors, and what assessment they have made of the process for evaluating their design and manufacturing.

My Lords, Great British Nuclear is pushing forward the SMR competition for UK deployment and is now in negotiation with bidders, with final decisions to be taken in the spring. The Government are also actively exploring how we can enable alternative routes to market for advanced technologies, including AMRs, and we will set out our policy position in due course.

I thank the Minister for that Answer. Will he explain exactly what has caused the damaging schedule slippage within GBN? Is it the shortage of staff, underfunding, underestimating the workload required or the many layers of approval—11 separate Whitehall approval committees at the last count—in order to allow GBN to announce the latest download of SMR technologies?

My Lords, I think the noble Baroness will know the answer, because 16 months of the lifetime of GBN occurred under her party’s Administration. The fact is that we are working very closely with GBN. It has to go through considered processes. It has done two rounds of assessment and, as I have said, four technologies have been shortlisted, all of which are viable options for development. Crucial talks are now taking place. Companies will be invited to make final bids, and decisions will be made in the spring. I am confident that GBN will ensure that we get to that final decision as soon as possible.

My Lords, will my noble friend the Minister please consider how we might give good news to those sites in north-west Wales, principally the Wylfa plant in Ynys Môn—Anglesey—now dormant, and Trawsfynydd in Meirionnydd, now dormant? The communities around those great plants that generated nuclear power for Britain deserve consideration in so far as, throughout north-west Wales, skilled jobs with good wages and status are very rare and both communities have deserved investment from our Government.

My Lords, I think I get the point my noble friend raises. He is absolutely right: new nuclear can bring many high-quality jobs, enhance our skills chain and help us grow the economy. He mentioned Wylfa in particular, and I well understand. He will know that Great British Nuclear has bought Wylfa, which is one of the sites identified in the planning statement in relation to nuclear. We are looking to make our siting policy more flexible to give us more opportunities in the future. We see new nuclear as having a hugely important role to play in our future energy structure.

My Lords, I declare my interests as in the register. As the Minister will be aware, we currently have an issue with dependence on Russian fuel for our nuclear fleet. What progress are the Government making in bringing forward legislation for a near-term ban on Russian fuel imports, with all the attendant benefits for national security, for convincing others to move internationally and for our domestic industries?

My Lords, the noble Lord will know that we have already agreed internationally to go for a 2030 cut-off. I have had correspondence from the noble Lord and I know that others would argue that we should bring it forward, as the US has wanted to do. We are in very serious discussions about that.

My Lords, the Minister will know about the global shortage of radioisotope supply for treating cancer. Is he aware that the Welsh Government, in co-operation with the Egino company, have financed a feasibility study into establishing a radioisotope production plant on the existing Trawsfynydd nuclear site, to which the noble Lord, Lord Jones, referred a moment ago, and for which an SMR would be highly relevant? Does he accept that such a project would help meet the UK healthcare needs, facilitate valuable exports, help the existing nuclear site to be managed and provide much-needed high-grade jobs? Please will he link up with colleagues in Cardiff to see what can be done on this through GB Nuclear?

My Lords, I understand the point the noble Lord is raising. My department is exercised by the advantage that could be brought. We are in discussions with the Welsh Assembly Government and my colleagues in the Department of Health and Social Care. I cannot say at this stage whether we can bring this to a successful outcome, but I certainly see the merits in what he is arguing.

My Lords, can the Minister update the House on the importance of the agreement reached on the sidelines of the COP summit with the United States, which seeks to speed up the deployment of cutting-edge nuclear technology, helping to decarbonise our industry? The agreement aims to support information sharing on advanced nuclear technologies to help make them available to industry by 2030. How important is this agreement, and how will it help us to make sure that this technology is actually deployed?

My Lords, it is a very important agreement. We have a very good relationship with the US on all things civil nuclear, and this will enable us to enhance that. I should also say that at COP, six new countries joined existing countries in declaration of an aim to triple nuclear power globally by 2050. There are now 31 signatures, which is very important. It is an indication that globally we are seeing a renaissance in nuclear, in which this Government wish our own nuclear industry to be a part.

Last week, in answer to a question on COP 29 from the noble and learned Baroness, Lady Butler-Sloss, referencing GB Energy, the noble Baroness, Lady Smith of Basildon, suggested that the Government would look at nuclear energy, specifically small nuclear reactors. Can the Minister clarify whether that is indeed the case?

I am not sure I understand the question, but if it is whether we recognise the importance of SMRs in this country and generally, the answer is yes. On the benefits of the use of small modular reactors, having a modular approach in which much can be assembled off-site brings huge advantages. Going forward, we see that SMRs have great potential, and of course UK companies themselves have great potential.

My Lords, the Minister clearly shares my frustration at the time taken in moving this issue forward under the previous Administration. At the same time, is it not a fact that we have a major nuclear reactor constructor in the UK that has been producing reactors for our submarines for over 60 years? Is it not enormously important for that constructor, and equally important for its supply chain, to be able to tool up and organise in order to produce? Is it not the unfortunate reality that the United States is moving ahead on this and has a full-spectrum approach to selling its modular reactors while we slip behind? What is the Minister going to do to speed this up?

I hope we are not slipping behind. Clearly, the process that GBN is going through will take a few more months, but I hope the outcome will be a satisfactory conclusion. I cannot comment on the companies involved in the appraisal and the discussions taking place with GBN at the moment, but I take the noble Lord’s point about our defence capability and the supply chain. We are increasingly seeing the civil nuclear and defence nuclear industries working more closely together, and I see that as a very important foundation for the future. I take the noble Lord’s point about the US; it is important that where we have a technological advantage, we make the best of it.

My Lords—

My Lords—

We will hear from the noble Baroness first, then the noble Lord.

My Lords, the Minister may have seen in New Civil Engineer in the past week the interview with King’s College London research fellow Ross Peel, who could be broadly characterised as a supporter of new nuclear and small modular reactors. He expressed concern that with the focus on safety, which is going to be a huge community concern, there has not been the focus that there needs to be on the security of the new modular nuclear reactors. A huge amount of spending has kept the current ones secure—

Question!

Are the Government going to consider security in the same kind of way?

My Lords, security is one of the key considerations not just on SMRs but on AMRs.

My Lords, there is a puzzle here. If the world acknowledges that SMRs and like designs can be built far more quickly than the larger-gigawatt traditional nuclear power stations, and if investors can be attracted to finance those SMRs—whereas the giants such as Sizewell, the so-called replica, will cost billions that will eventually fall on consumers and taxpayers—why are we not giving far more priority to ordering and developing SMRs and smaller reactors, as many other countries are doing? Many producers are finding that their order books are becoming full.

My Lords, I think the noble Lord paints too bleak a position. The UK is very well placed in relation to SMRs, and the programme that GBN is taking forward is being watched with great interest by a number of countries. In relation to investment, as the chair of GBN, Simon Bowen, told the energy Select Committee last week, of course there are issues to do with risk, timing and potential delays with first-in-class designs. But as we gain momentum and produce more modular reactors, the efficiency of the programme will get better and better. That is why we have to give support at this stage, and why we see huge potential.