USA-based Holtec International has selected South Yorkshire in England as the preferred site for its proposed UK small modular reactor factory. It has also signed memorandums of understanding with two British research centres to support SMR manufacturing and testing.

Holtec's image of a two-unit SMR-300 plant (Image: Holtec)

Holtec's selection process involved evaluation of 13 locations that responded to a call for interest released by Holtec earlier this year, after which four locations - West Midlands, South Yorkshire, Cumbria and Tees Valley - were shortlisted. Holtec's UK subsidiary, Holtec Britain, has now selected South Yorkshire as the location for its new SMR factory to serve the UK, Europe and the Middle East.

According to the company, the factory is estimated to provide GBP1.5 billion (USD2 billion) in Gross Value Added to the economy and is set to create hundreds of well-paid, high-skilled jobs.

Holtec said that at least 70% of materials, components and services will be sourced from the UK, with significant supply chain opportunities, particularly in and around South Yorkshire.

"Holtec Britain was impressed by the resounding interest in our new SMR factory across the UK and the strong support received by the local authorities during our engagements," said Gareth Thomas, Director of Holtec Britain. "However, after a rigorous process, South Yorkshire was finally selected as our preferred location.

"In addition to the technical, supply chain, training, and logistics criteria for the formal evaluation, we were also impressed by the history and pride of the people we met during our visit to South Yorkshire, which demonstrated the workforce really cares about the quality and reputation of their work. For Holtec, that translates to a workforce that can be trained and will remain committed to delivering the high-quality nuclear products that Holtec, and our customers, demand."

Holtec said it was working to finalise its factory business plan to support its Final Investment Decision, based on its UK and international order book.

Holtec has been developing its SMR unit since 2011. The SMR-300 is a pressurised water reactor producing around 300 MW of electrical power or 1050 MW of thermal power for process applications, and the company says it has undergone several design evolutions, the most recent of which is the incorporation of forced flow capability overlayed on gravity-driven flow in the plant's primary system.

The SMR-300 is one of six SMR designs selected in October last year by Great British Nuclear on a shortlist for the UK's SMR selection competition and one of the five vendors to submit a bid by the 8 July deadline. The aim is for a final investment decision on two or three of the designs to be taken in 2029.

Holtec proposes to deploy around 5 GWe of SMRs in serial production in the UK by 2050.

In December 2023, Holtec secured GBP30 million from the UK government's Future Nuclear Enabling Fund to start the generic design assessment (GDA) process, and completed the first step last month.

The company said it is on track to begin the licensing and construction of two SMR-300 units at its Palisades nuclear power plant site in Michigan. It is aiming to file a construction permit application for the two Palisades SMRs in 2026 with the first SMR-300 plant targeted for mid-2030, subject to regulatory reviews and oversight.

Cooperation agreements

Holtec has also announced that it has signed memorandums of understanding with two UK research centres within the High Value Manufacturing Catapult - the University of Sheffield Advanced Manufacturing Research Centre (AMRC) and the Coventry-based Manufacturing Technology Centre (MTC) - to support SMR manufacturing and testing.

The MoU with AMRC agrees that both parties will conduct in-depth analysis of manufacturing technology efficiency and UK skills challenges. Holtec and AMRC will also explore collaboration on SMRs, large-scale nuclear and fusion in both the civil and defence sectors.

"With the signing of this MoU, we're delighted to work with Holtec on a number of manufacturing technology challenges that will bring enhanced efficiency, productivity and impact for the UK - which is at the very core of what we do at the AMRC and indeed, the wider High Value Manufacturing Catapult, said AMRC CEO Steve Foxley.

Holtec Britain's Thomas said: "Our MoU is a serious statement of intent to cement our UK footprint to service the UK domestic market with UK R&D, UK jobs and a fully integrated UK supply chain."

The MoU signed between Holtec Britain and MTC is aimed at supporting the manufacturing and testing of the SMR-300. The agreement states that both parties will work together to find the best manufacturing processes and solutions for the SMR-300. MTC will leverage its expertise to explore innovative manufacturing processes for a future testing phase and both parties will work collaboratively from proof of concept to final installation, training and support after project completion.

"Through our partnership with Holtec, not only will we deliver the innovations needed by one company, but also support end-to-end supply chain development to help anchor this growth sector in the UK," said MTC Senior Business Development Manager Andrew Bowfield.

Thomas added: "Our MoU with the world class MTC is a landmark moment for Holtec Britain as we commit to build on our historic UK nuclear history and use this SMR moment to grow jobs with a fully integrated UK supply chain."