US nuclear giant pulls out of race to build Britain's first mini-nukes
US nuclear giant Westinghouse has pulled out of the UK's small modular reactor (SMR) design competition.
The four companies remaining in the contest were given a deadline of mid-April to make their final bids, but The Telegraph understands that Westinghouse did not submit one following a negotiation process.
It means only three finalists – Rolls-Royce, GE-Hitachi and Holtec – remain in the running.
Great British Nuclear (GBN), the quango responsible for the SMR programme, was expected to announce two winners this summer with bidders told to prepare to build three to four mini reactors each.
Westinghouse did not deny it had withdrawn on Friday but declined to give its reasons.
One industry source suggested the company had baulked at the commercial offer made by the Government.
GBN previously advertised contracts worth £20bn in total for SMR 'technology partners', a figure that is understood to be based on the assumption two winners would be chosen.
However, The Telegraph revealed in February that the Government was considering awarding a contract to only one company as Rachel Reeves, the Chancellor, looks to make savings in her cross-departmental spending review.
The Chancellor is struggling to balance the books as weak economic growth makes it harder to meet her self-imposed 'fiscal rules' for borrowing.
SMR supporters claim they could be a breakthrough in nuclear power because they would be made predominantly in factories and then assembled on site, cutting building times from around a decade to a few years. In theory this could cut costs – as would-be builders of SMRS have repeatedly promised..
Many politicians have snapped up that bait. When he opened the latest stage of the SMR competition, Mr Miliband said: 'Small modular reactors will support our mission to become a clean energy superpower.'
However, the nuclear industry has a mixed record on bringing in key projects on time and on budget.
The biggest current example is the UK's Hinkley Point C power station in Somerset which EDF originally said would cost under £20bn and be operating by now. Current costs estimates are for a final price approaching £50bn and a start-up after 2030.
There are growing fears that the economics of SMRs could prove even harder to justify – because they have many of the same problems as large reactors – meaning security and waste disposal – but produce far less electricity and so make less money.
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