West Midlands welcomes US nuclear giant Holtec as part of bid for £1.3bn investment

• West Midlands plays host to US nuclear power giant, Holtec, as part of bid for an initial £1.3bn investment.
• Region is one of final four English locations in the running to become home of new 20Ha Small Modular Reactor (SMR) factory for Holtec Britain, which will manufacture equipment for SMR power stations.
• New facility expected to create thousands of jobs over next 15 years, with final decision to select winning location to be made in the autumn.

The West Midlands has played host to a team of senior representatives from US nuclear power giant, Holtec, as part of its bid to become the home of a new 20Ha Small Modular Reactor (SMR) factory. The region is one of four English locations in the running to receive the £1.3bn investment from Holtec Britain.

The announcement follows a competition run by the business to find a new factory and production site for building a fleet of Small Modular Reactors (SMRs) for deployment in the UK, Europe and Middle East. If successful, the region will benefit from an initial investment of £1.3bn, reflecting Holtec’s budget for construction. The development and operation of the 20Ha site is anticipated to directly generate thousands of jobs over the next 15 years.

It is expected that up to a quarter of all UK electricity could come from nuclear power by 2050. Analysis carried out by the economics consultancy, ChamberlainWalker, states that the planned SMR factory will be part of an export market which could be worth hundreds of billions in the run up to 2050. The project is also projected to contribute approximately £1.5bn in Gross Value Added (GVA) to the economy of the chosen location.

Earlier this year, local authorities and businesses were invited to submit Expressions of Interest (EOIs) to host the factory, assessed on deliverability, connectivity, regeneration potential, skills and research, and quality of life. Of the 13 that submitted EOIs, others through to the final stage of the competition, in addition to the West Midlands Combined Authority, are:

• South Yorkshire Combined Authority.
• Tees Valley Combined Authority.
• Cumbria Local Enterprise Partnership (CLEP).

During their visit, sector experts from the West Midlands Growth Company (WMGC) – the region’s official investment promotion agency who formulated the EOI and have led the Holtec Britain team’s visit on behalf of the West Midlands – provided an overview of the region’s unique offering to advanced manufacturing and low carbon investors. This included a visit to the Manufacturing Technology Centre (MTC) based at Ansty Park, Coventry. Representing the geographic and strategic centre of the UK’s power distribution network, the West Midlands boasts the UK’s fastest-growing low carbon sector. It is also home to the highest concentration of energy professionals in the UK.

A final decision to select the winning location is expected to be made in the autumn. It is expected that the site will be used to produce 2-4 reactors per year, valued at £1-2bn each. The factory site will not deal with any nuclear fuel.

Holtec has been active in the UK for over a decade, notably with Sizewell B. Its presence in the UK continues to grow, supported by Professor Dame Julia King, Baroness Brown of Cambridge, who joined as a Senior Adviser in February. Baroness Brown has vast experience across engineering, net zero policy and technology. She is member of the Climate Change Committee and chair of its sub-committee – the Adaptation Committee. She was non-executive Director of the Green Investment Bank and is Chair of the House of Lords Science and Technology Select Committee.

Holtec’s Senior Adviser in the UK, Professor Dame Julia King FRS FREng, Baroness Brown of Cambridge, said:

On behalf of Holtec, I extend our sincere gratitude to the West Midlands Combined Authority for their gracious hospitality during our visit to their proposed location for our UK SMR factory.

 

“My colleagues and I were highly impressed by the state-of-the-art facilities we saw at the Manufacturing Technology Centre (MTC) in Ansty Park, in particular their additive manufacturing and cross sector research, as well as the team’s passion, confidence and enthusiasm for attracting high quality jobs and investment.

 

“The region’s wealth of world class higher education institutions, relevant skills base, and its proud history of advanced manufacturing really fills us with confidence as we move forward with our assessment of the shortlisted bids.  We will come to a decision in due course.

 

“Holtec’s new UK SMR factory, wherever it is located, will be transformative – opening a new export market worth billions and generating highly skilled, unionised jobs during both its construction and operational phase for decades to come.”

Mayor of the West Midlands, Richard Parker, said:

The West Midlands was the crucible that fired up the Industrial Revolution and led to global change. Now we stand ready to bring about a new revolution – one that brings us greener energy, sustainable growth and change for the better. Our long-standing industrial heritage means we have all of the building blocks in place to support growing businesses. An unrivalled manufacturing skills-base, central connectivity and expert understanding of scalable, sustainable energy solutions make us a natural and reliable partner for Holtec Britain and a great location for their SMR factory.

 

“Our refreshed Regional Energy Strategy – set to be published later this year – paves the way for a sustainable and just transition to cleaner energy and will stand us in good stead to benefit from, and contribute to, Government’s national energy ambitions. We will work closely as a region with partners to deliver these ambitions and ensure the region makes the most of this type of investment, including securing high-quality jobs for our people.”