Holtec Britain’s £1.5bn Investment in South Yorkshire for Small Modular Reactor Factory

Holtec Britain has confirmed South Yorkshire as the chosen location for its upcoming £1.5 billion small modular reactor (SMR) factory, contingent on a final investment decision. This pivotal move positions South Yorkshire at the heart of the growing global competition to develop compact nuclear reactors, known for their swift construction due to modular designs. The factory aims to produce key components for these advanced reactors, which have a capacity of around 300MW.

Holtec Britain joins the likes of GE-Hitachi, NuScale Power, Rolls-Royce SMR, and Westinghouse Electric Co., all of which are participating in the UK government’s SMR competition, spearheaded by Great British Nuclear (GBN). The competition will select one or two SMR designs for government support, fast-tracking their deployment across the country. However, even without government backing, companies like Holtec plan to pursue private initiatives to meet the UK’s demand for clean energy solutions.

A major win for South Yorkshire

Holtec’s decision to establish its SMR factory in South Yorkshire comes after a thorough evaluation of multiple UK regions. Contenders such as the West Midlands, Tees Valley, and Cumbria were also in the running. South Yorkshire’s established reputation in clean technology, combined with its skilled workforce, proved decisive in securing the region as the factory’s future home.

The South Yorkshire Mayoral Combined Authority (SYMCA) praised the decision, stating, "South Yorkshire is already home to the UK’s largest clean-tech cluster and has unique strengths in SMRs, hydrogen, and sustainable aviation. Holtec’s decision to build its new major SMR facility in the region has cemented South Yorkshire’s place as the natural home for emerging clean energy sectors.”

Key reasons for South Yorkshire’s selection:

• Strong credentials in clean energy technologies
• A highly skilled, dedicated workforce
• Support from local authorities and infrastructure

This significant investment is expected to create substantial employment opportunities, with Holtec projecting the creation of around 3,000 engineering jobs over the next two decades. This, alongside an anticipated £30 billion export opportunity, underscores the long-term economic benefits for the region.

Economic impact and job creation

Holtec Britain’s £1.5bn investment in South Yorkshire is set to have a transformative effect on the local economy. The factory is expected to generate hundreds of high-skilled jobs, with a forecast of over 3,000 positions over the next 20 years. The Bradshaw Advisory report further predicts a £30 billion export opportunity for the UK, driven by the increasing demand for clean energy solutions across Europe and the Middle East.

Gareth Thomas, Holtec Britain’s director, commended South Yorkshire for its resilience and competitiveness. He also acknowledged the role of the local workforce in securing the bid, noting,

“In addition to the technical, supply chain, training, and logistics criteria, we were also impressed by the history and pride of the people we met in South Yorkshire. This demonstrated a workforce that really cares about the quality and reputation of their work.”

Thomas emphasised that the new facility will play a central role in Holtec’s operations, producing components not only for civilian reactors but also for naval nuclear reactors.

Training the next generation of nuclear engineers

South Yorkshire Mayor Oliver Coppard celebrated Holtec’s decision, highlighting the region’s engineering heritage and expertise. Coppard stated,

“We’re building on hundreds of years of innovation and engineering heritage to create world-leading facilities, skills, and expertise today. That’s why Holtec has chosen South Yorkshire as the home of their £1.5bn manufacturing facility. Their decision has the potential to support hundreds of high-paying jobs, and their SMR Learning Academy will help train the next generation of nuclear engineers.”

Holtec’s investment will not only create job opportunities but also enhance South Yorkshire’s role as a centre for nuclear innovation. The SMR Learning Academy will play a crucial role in training the workforce needed to support both the UK’s and the global demand for SMRs.

South Yorkshire: a hub for clean energy

Holtec’s new factory will join a growing portfolio of clean energy projects in South Yorkshire. In recent years, the region has become a significant player in the UK’s clean energy sector, with projects like the Rolls-Royce SMR facility further solidifying its position. Rolls-Royce has already invested £2.7 million into its own SMR module manufacturing site, refining production processes to ensure efficient delivery of reactors. Holtec’s new site will complement these efforts, creating a collaborative clean energy hub in the region.

The combined activities of Holtec and Rolls-Royce are expected to keep South Yorkshire at the forefront of the clean energy transition, positioning it as a key player in the UK’s mission to reduce carbon emissions and reach net zero.

Global impact of Holtec’s investment

Holtec’s SMR factory will not only serve the UK’s growing demand for clean energy solutions but also cater to international markets. With plans to export SMR components to Europe and the Middle East, the new facility will significantly enhance the UK’s role in the global clean energy transition.

As more countries seek to reduce their reliance on fossil fuels, SMRs are becoming an increasingly attractive solution. Their smaller size and modular construction allow for faster deployment, making them a key component of future clean energy grids. The success of Holtec’s factory in South Yorkshire will likely serve as a model for further SMR investments across the globe.

Supporting the UK’s net-zero goals

Holtec’s investment is a major boost to the UK’s ambition of becoming a world leader in clean energy technology. SMRs, with their compact design and quick construction times, represent a significant step forward in achieving the UK’s net-zero targets by 2050. By developing advanced nuclear technologies, the UK aims to reduce its reliance on fossil fuels and increase the share of renewable energy in its energy mix.

Key benefits of SMRs:

• Compact and scalable design
• Faster construction times
• Lower upfront costs compared to traditional nuclear reactors
• Potential to support renewable energy grids

The collaboration between Holtec and Rolls-Royce, alongside the support from local authorities, will be crucial in ensuring the UK meets its clean energy goals. The success of these projects will not only benefit South Yorkshire but also have a lasting impact on the country’s energy landscape.