The Rolls-Royce Group has reached agreement with the Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar, to invest Ksh. 12.7 billion (GBP 85 million) in Rolls-Royce SMR. Rolls-Royce SMR is building a new technology solution to deliver affordable, low carbon, nuclear power. One power station will occupy almost one tenth of the size of a conventional nuclear generation site and power approximately one million homes.
QIA will join the Rolls-Royce Group, BNF Resources UK and Exelon Generation as shareholders in Rolls-Royce SMR, taking a 10% share of the equity. The Rolls-Royce SMR business is now fully funded, having secured Ksh. 73 million (£490 million) through commercial equity and UK Research and Innovation (UKRI) grant funding. The development of SMRs is part of the UK Government’s 10 point plan for a green industrial revolution.
Speaking on the new partnership with Rolls-Royce, Mansoor bin Ebrahim Al-Mahmoud, CEO of QIA commented, “QIA is investing in the energy transition and funding the technologies that enable low carbon electricity generation. We will continue to seek out investments that align with our mandate to deliver long-term value for future generations through responsible sustainable investments.”
On his part, Warren East, CEO, Rolls-Royce Group said, “I am tremendously pleased to announce that we have further strengthened our relationship with Qatar, through QIA’s investment in the Rolls-Royce SMR business. We have successfully raised the capital we need to establish Rolls-Royce SMR and it is encouraging to confirm that the business is now set up to succeed.”
Business and Energy Secretary Kwasi Kwarteng said, “This investment is a clear vote of confidence in the UK’s global leadership in nuclear innovation and follows the £210 million of government investment in the development in Small Modular Reactors. It represents a huge step forward in our plan to deploy more home-grown, affordable clean energy, ensuring greater energy independence for the UK, highly skilled jobs and bringing cheaper, cleaner electricity to people’s homes.”