holtec Britain, a subsidiary of US-based Holtec International, has selected South Yorkshire for construction of a factory to produce its small modular reactor (SMR). The region hosts some of the UK’s key engineering universities and facilities, including the Advanced Manufacturing Research Center (AMRC).

Holtec evaluated 13 locations that responded to a call for interest released earlier in 2024. Four locations were shortlisted based on the selection criteria. The factory is estimated to provide £1.5bn ($2bn) in Gross Value Added (GVA) to the economy and to create hundreds of well-paid, high-skilled jobs.

The SMR-300 is a pressurised water reactor (PWR) using technology based on existing standards in the US and UK and uses PWR fuel similar to that already used at Sizewell B, and other new UK reactors under development. Holtec has been developing its SMR since 2011. The SMR-300 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.

Holtec Britain was supported by a £60m investment, £30m of which was secured from the UK government’s Future Nuclear Enabling Fund award in 2023. The Holtec Britain team has now more than tripled in size and has relocated its UK HQ to Bristol. The SMR-300 is undergoing the UK’s Generic Design Assessment process and began Step 2 in August, which is expected to last for 14 months. Holtec is also one of five companies participating in the Great British Nuclear SMR competition, two of which will be selected for further government support.

“This is a stunning success for South Yorkshire. Holtec’s decision to choose South Yorkshire as the home of its new SMR factory cements our place as the as the natural home for emerging clean energy sectors,” said South Yorkshire Mayor Oliver Coppard. “Holtec’s plans to build a £1.5bn GVA advanced SMR factory here have the potential to support hundreds of high-paying jobs and their SMR Learning Academy will help to train the next generation of nuclear experts.”

Gareth Thomas, Director of Holtec Britain said South Yorkshire was finally selected “after a rigorous process”. He added: “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…. Holtec is working to finalise its factory business plan to support its Final Investment Decision, based on its UK and international order book.” Holtec said it would aim to ensure 70% of materials, components, and services used at the site could be procured within the UK “and particularly South Yorkshire”.

Holtec has also signed two separate agreements with the University of Sheffield’s AMRC as well as the Manufacturing Technology Centre in Coventry to collaborate on SMRs, large nuclear and fusion energy components, as well as for the nuclear civil defence sector. The memorandum of understanding (MOU) with AMRC, Cooperation on Nuclear Advanced Manufacturing Technology, outlines plans for an in-depth analysis of manufacturing technology efficiency and addressing UK skills shortages.

Gareth Thomas said the MOU is “a serious statement of intent to cement our UK footprint, supporting the domestic market with UK-based R&D, jobs, and a fully integrated supply chain”. Working closely with the AMRC offers a fantastic opportunity to advance our SMR-300 Pressurised Water Reactor (PWR) technology and other nuclear innovations, he added.

Steve Foxley, CEO of the University of Sheffield AMRC, said the collaboration will enhance the UK’s clean energy capabilities. “Holtec can make a substantial contribution to the UK’s manufacturing sector, particularly in delivering clean energy for communities and businesses. This MOU will allow us to work on manufacturing technology challenges, improving efficiency, productivity, and impact, which is at the core of what we do at the AMRC.”

Holtec’s project team includes UK and international partners such as Balfour Beatty, Mitsubishi Electric, UK engineering consultants Mott McDonald, and South Korean construction giant Hyundai E&C.