Innovate UK powers progress towards low-carbon nuclear future

Innovate UK has helped Rolls-Royce SMR achieve a key regulatory milestone in the development of its small modular reactor (SMR) when it passed Step 2 of the Generic Design Assessment (GDA) process in July 2024.

Low Cost Nuclear Challenge

The Low Cost Nuclear (LCN) Challenge, led by Rolls-Royce SMR, delivered by Innovate UK, and funded by the Department for Energy Security and Net Zero (DESNZ), concluded in March 2025.

Through the LCN Challenge, Rolls-Royce SMR received £228 million of public funding, matched by more than £268 million of private sector investment.

This funding enabled Rolls-Royce SMR to develop the SMR technical design and cost models, to identify the supply chain and manufacturing strategy required for a future ‘fleet deployment’, and to promote greater equality and diversity in the UK nuclear sector.

Factory-built nuclear power closer to market

Rolls-Royce SMR has been selected by Great British Energy – Nuclear as preferred bidder to build the UK’s first SMR subject to government approvals, marking a critical step forward bringing factory-built nuclear power technology to market. The company has previously been selected by European utility ČEZ, to deliver up to 3 GW of electricity in the Czech Republic. It is currently being considered for a range of international markets – including potentially in Sweden, where Rolls-Royce SMR is in the final two SMRs in their technology selection process.

Significant journey milestone

Rich Deakin, Challenge Director – Low Cost Nuclear, said: “I would like to send my congratulations to Rolls Royce SMR on this significant milestone in their journey. It has been my privilege to have been given the opportunity to lead UKRI’s Low Cost Nuclear Challenge which, with the support and funding from the government, has sought to address the fundamental challenge of supporting green economic growth by reducing the cost of the delivery of nuclear power.

“LCN, supported by Government and in collaboration with our co-investing partners, took an initial idea to create a factory-built product and created a business, Rolls-Royce SMR, which has grown to be one of the leading small nuclear technology providers in the civil energy market, acting as a vehicle for significant inward investment, creating many jobs and offering a potential of long-term economic benefit to the UK.

“This shows the impact of innovation funding on de-risking and driving new technologies, building the UK’s supply chain, and strengthening our energy security.”

Watch: Programme impact

To find out more about the LCN Challenge and its impact, see this video where key stakeholders from Innovate UK, DESNZ and Rolls-Royce SMR reflect on the success of the programme.