Rolls-Royce to Create Small Nuclear Reactors for the UK and Japan

A new triple-headed partnership

At 10 Downing Street, amid an official visit from Japanese Prime Minister Sanae Takaichi, Rolls-Royce finalized two significant trilateral Memorandums of Cooperation. The agreement outlines a collaboration between Rolls-Royce, the UK National Nuclear Laboratory, and the Japan Atomic Energy Agency, focused on expediting commercial application by leveraging national capabilities.

This follows a recent agreement to supply SMR units across Europe after securing a contract with CEZ Group. The objective is to accelerate the advancement of next-generation, high-temperature advanced nuclear reactors.

Tiny reactors with massive heat

In contrast to conventional large nuclear facilities, these AMRs function at exceptionally high temperatures of 700 degrees Celsius or higher. They are considerably more compact, yielding a modest 15 to 35 megawatts of electricity—sufficient to energize approximately 1 million typical households.

The small size makes them ideally suited for off-grid industrial applications, data centers, military installations, and heavy manufacturing. The reactors provide adaptable, localized heat and power directly to energy-demanding processes like steel-making, green hydrogen production, and cement manufacturing.

What is Coated Particle Fuel?

In a high-temperature AMR, uranium is encased in layers of ceramic material, forming TRISO fuel. These particles are compacted into hexagonal blocks or billiard ball-sized pebbles. They can endure extreme operational temperatures and cool down autonomously, rendering the design inherently resistant to meltdown.

Japan possesses decades of expertise in operating engineering test reactors utilizing this technology. Under the new partnership, Japan will share its safety information to assist Rolls-Royce in constructing a demonstrator AMR in the UK by the mid-2030s.

The Australian context and our 25-year holding pattern

Australia finds itself in a distinct, highly contested holding pattern regarding nuclear technology. It is prohibited to establish or operate a commercial nuclear power facility in Australia, as stipulated in the Environment Protection and Biodiversity Conservation Act 1999 and the Australian Radiation Protection and Nuclear Safety Act 1998.

Despite possessing one-third of the world’s known uranium resources, Australia lacks the legal ability to utilize it for its own energy requirements. The signing of the AUKUS trilateral security agreement introduced nuclear reactors for military propulsion while maintaining the ban on civilian nuclear power.

Australia does have some nuclear tech already

The OPAL Research Reactor in Sydney generates medical radioisotopes and performs scientific research but does not produce electricity. The Federal Opposition supports lifting the nuclear prohibition, claiming it is vital for ensuring baseload grid stability alongside renewable sources. On the other hand, the current federal government and the Greens continue to oppose, citing cost, timelines, and social acceptance as major hurdles.

Summary

International collaborations like that of Rolls-Royce, the UK, and Japan could impact Australia’s nuclear discussions. If micro-reactors prove effective in powering remote heavy industries or data centers, Australia’s position could change.