National Wealth Fund invests £599m in Rolls-Royce SMR nuclear project
Posted on 16 April 2026
Financing package designed to kick-start delivery on its project with Great British Energy, creating around 1,000 jobs
Rachel Reeves' flagship wealth fund has announced a significant new financing package for Rolls-Royce SMR, following its partnership with Ed Miliband's state-owned energy firm.
The National Wealth Fund has unveiled a £599m financing package for Rolls-Royce Small Modular Reactors (SMR), aimed at accelerating delivery on its project with Great British Energy.
The collaboration will see the development of the UK's first small modular reactors as part of the government's push towards clean energy.
Small modular reactors are engineered to produce up to roughly one-third of the electricity generated by conventional reactors. Developers contend that smaller reactors can be built more swiftly and cost-efficiently than larger power stations, with the flexibility to scale up and meet specific local requirements.
Each Rolls-Royce SMR is anticipated to generate 470 megawatts of low-carbon electricity, as reported by City AM.
The capital injection from the taxpayer-backed wealth fund is intended to reduce risk for private lenders, effectively deploying public funds to "crowd in" billions in additional investment from the City and international markets.
Approximately a thousand jobs are expected to be generated at Rolls-Royce SMR, which is jointly owned by the FTSE 100 giant and Czech power company CEZ, through the funding.
Rolls-Royce SMR was selected as the preferred technology partner for the project last June, with around £2.6bn set aside in the 2025 Spending Review for the contract. The Chancellor stated: "This investment, along with vital financing from the National Wealth Fund, will strengthen our energy security, create skilled jobs and help to build a new generation of homegrown nuclear technology that will power our economy for decades to come."
Meanwhile, Ed Miliband argued the government's clean energy mission was "the only route to getting off the rollercoaster of fossil fuels and take back control of our energy independence".
The energy secretary has faced intense scrutiny over recent weeks as oil and gas markets were disrupted by the Middle East crisis.
The spike in energy prices has prompted demands for the government to exploit the North Sea. However, during a Prime Minister's Questions session at the end of March, Sir Keir Starmer indicated he doesn't possess legal authority to authorise new exploration of the fields, with the decision resting in the hands of Mr Miliband.
