Industrial technology company Rolls-Royce has signed a memorandum of understanding (MoU) with Exelon Generation for the operation of compact nuclear power stations in the UK and overseas locations.

Under the contract, Exelon Generation agreed to assist Rolls Royce in the development and deployment of UK small modular reactors (UKSMR).

Exelon Generation executive vice-president and COO Bryan Hanson said: “We believe that SMRs are a crucial part of the world’s clean energy mix.

“With our experience both in the US and internationally, Exelon is confident that we can help Rolls Royce ensure SMRs play a key role in the UK’s energy future.”

In January, Rolls-Royce announced that it will be leading a consortium to build and install small modular reactors (SMRs) on former nuclear sites to power the UK by 2029.

Members part of the consortium are Assystem, Atkins, BAM Nuttall, Jacobs, Laing O’Rourke, National Nuclear Laboratory, Nuclear Advanced Manufacturing Research Centre, Rolls-Royce and TWI.

Working with its partners, as well as the UK government, the consortium will secure a commitment for a fleet of factory-built nuclear power stations, each with a 440MW capacity, developed inside a weatherproof canopy.

The power stations could also appear online within a decade, as help the country in meeting its net-zero obligations.

A fleet deployment in the UK will see the creation of new factories that will make the components and modules to help the economy recover from the Covid-19 pandemic.

Estimates show that by 2050, the factory fleet could create nearly 40,000 jobs, as well as £52bn ($68bn) of value to the UK economy and £250bn ($329bn) in exports.

Exelon Generation said that it will work with the consortium during the pre-operation period.