Small Modular Reactors

I beg to move,

That this House has considered small modular reactors.

It is an honour and privilege to serve under your chairmanship, Mr Paisley. This debate is so important for my constituency, the nuclear industry, the country and—if we are going to slow down the rate of climate change—our planet. The three parts of the energy trilemma are reducing carbon emissions, securing the supply of power and ensuring affordability. The Inter- governmental Panel on Climate Change reports that, if we are to slow down the rise in global temperatures this century, nuclear will feature as a hearty part of the energy mix.

Government have recognised that. It is this Government who are investing in nuclear new build. It is this Government who have begun investing in the technology advances of small modular, advanced modular and nuclear fusion innovation, in partnership with industry. And it is this Government who have ensured, as we leave the European Union, that the necessary non-proliferation nuclear safeguard regimes are in place and that we will be able to operate internationally, under the roof of the Office for Nuclear Regulation, which also has responsibility for safety and security. The industrial strategy and the nuclear sector deal are great policy advances, but I ask my hon. Friend the Minister to tell us, in his response to the debate, what is being done to promote policy to progress.

More wind farms—on and offshore—and the abundance of solar panels mean that, in addition to much more, intermittent renewable energy, reliable low-carbon nuclear is needed to make the UK energy system secure and affordable. During the long dark hours without any sun, or when the wind is not blowing and the blades do not turn, we can all depend on fission—on the splitting of atoms—to heat water, to create steam, to turn the turbine that generates electricity, which is then transmitted on our national grid, and to provide baseload power and the potential for district heating—24 hours a day and 365 days a year, for up to 60 years.

There is a demonstrable need for clean, low-carbon electricity now and long into the future. The anticipated requirement for electric vehicles alone could reach additional capacity of 18 GW by 2040. And in Copeland we have an indisputable capability. Nowhere else in Europe could there be found such a concentration of knowledge and skills, yet we face an uncertain future. First it was Moorside, and then Wylfa: the headlines have not been positive for new nuclear, despite significant Government efforts and financial incentives.

Economies of scale, based on the size of a reactor, have been, at least until very recently, widely regarded as the most cost-effective method of development, but the “bigger is better” argument may well be contested by small modular reactors. Calder Hall, which began construction in 1953 in my constituency, generated electricity from 1956. It was officially opened by the Queen in 1957 and consisted of four 50 MW Magnox reactors, which transmitted electricity on to the national grid for 47 years, until 2003. Today, we are desperately fighting to get a whopping 3.4 GW power station over the line. Moorside—the proposed new generation III nuclear power station, which is to be built adjacent to the Sellafield site—has been beset by a range of ongoing problems over many years.

Following what happened at Fukushima, the increased cost of engineering means that nuclear is getting more expensive. The return on investment is becoming prohibitively difficult to predict, and the availability of companies capable of constructing large-scale gigawatt-plus reactors is limited. Sadly, there are no large-scale British civil nuclear companies operating today.

Let me be clear: the development of small modular reactors is not in competition with large gigawatt reactors. Small reactors have a complementary role in contributing to the energy mix. Because of the economies of scale that could be achieved by building multiple reactors, having many more small modular reactors could be the key to our energy future.

The Government’s nuclear sector deal aims for a 30% reduction in the cost of new build and advocates the merits of a fleet-build approach. The reduced-cost, repetitive-formula, standardised, modular method of construction has yet to be rolled out in the civil nuclear industry, but it has transformed the car and aerospace industries. As we look for ways to secure the necessary resurgence of nuclear power, I ask the Minister whether it is time to do what we have done in those industries in our energy sector.

Small modular reactors of up to 440 MW in size, with a diverse range of technologies, are currently being researched and developed across the UK, thanks, in part, to Government funding. Of course, small nuclear reactors are nothing new; for 50 years, our Royal Navy’s continuous at-sea deterrent has reliably been dependent on a mini light water reactor to keep it powered for years at a time without the need for refuelling—a fact that the hon. Member for Barrow and Furness (John Woodcock) celebrates well and often in this place.

Rolls-Royce has mastered the art of small-space engineering, and is now one of many companies developing its technology on a slightly larger scale.

I congratulate my hon. Friend on securing this debate. Does she agree that companies such as Goodwin International, which the Minister has visited in my constituency, could help? It has already been working in the defence industry, which she touched on, and could really help to commercialise SMRs in this country.

I absolutely agree. It will be no surprise that I commend Goodwin International for the work it does in the defence industry. This is all about ensuring that British companies can contribute and can benefit companies in the supply chain, which provide components and, most importantly, jobs and apprenticeships. I understand that 125 new apprenticeships are coming from Goodwin, and there will be many more in the future.

I congratulate my hon. Friend on securing this debate, which is important for not just our country but our county. She talks about the private sector. Does she agree that there is a role for the Government, who should make a real commitment to supporting the SMR sector? That may include a financial contribution.

I thank my hon. Friend for that important reminder that we cannot do this without Government support. We have the capability and the demonstrable need. The industry is desperate to be part of the solution, but we must have the Government’s financial policy and industrial support to take this forward.

From light water reactors to heavy water reactors, and molten salt to sodium cooled, the innovation in fission technology is most certainly alive and kicking. Some of our greatest, most innovative companies are now interested in building small reactors in the UK. Moltex, Atkins, NuScale, EDF, DBD, U-Battery Developments, Westinghouse, Sheffield Forgemasters and Rolls-Royce—these companies and hundreds of others involved with their supply chains, such as Goodwin, need our political, financial and industrial support.

Today, there are about 50 civil small modular reactors at various stages of research and development across the world. Fleet build is widely anticipated to bring a swifter return on investment, with lower barriers to entry and standardisation. As politicians, it is surely our job to ensure that policy takes possibility towards probability. Constructing single or incremental small modular reactors on nuclear-licensed sites, where the existing industrial power requirement is currently dependent on fossil fuel, is surely a credible, sensible and more sustainable way to power the UK and beyond.

There is one such location on the outskirts of the Sellafield site in Copeland. Fellside is a combined heat and power plant with a capability of about 170 MW, but it is due to come out of service later this year. It is outwith the nuclear licensed site boundary, but it has the benefit of the Civil Nuclear Constabulary for security, and obviously has a huge adjacent industrial power requirement, which is currently dependent on gas. Will the Minister consider Fellside a suitable, if not perfect, site for a future small modular reactor, and value the huge potential for further advanced manufacturing facilities in Copeland?

Order. Before I call Mr Shannon, I advise Members that each speaker will have three minutes. I intend to call the SNP spokesman just after 5.5 pm, then the Labour party spokesman—

Three minutes for him!

No, the hon. Gentleman will get more—otherwise, the Minister might only get three minutes. I will call the Minister at 5.20 pm.

Thank you, Mr Paisley. It is a pleasure to speak in the debate. I congratulate the hon. Member for Copeland (Trudy Harrison) on securing it and on arguing the case for her constituency so passionately. She mentioned that you were listening intently, but you always do—that was never in doubt.

Like the hon. Lady, I see nuclear energy and our ability to produce it as essential. I have always supported it, even on my local council many years ago and in the Northern Ireland Assembly. We must have that ability until, if ever, we have the capacity to produce energy wholly through renewable energy in a reliable and consistent manner. We must have the ability to secure our energy supply until that stage comes. I also wish to plug Harland & Wolff and its engineering in Belfast. It has the capacity to be involved in forwarding some of these projects with its engineering expertise.

I agree with colleagues who have stated clearly that nuclear power is clean, producing fewer greenhouse gases and thus contributing to the fight against the danger of climate change. It is accepted that nuclear production does not directly produce sulphur dioxide, nitrogen oxides, mercury or other pollutants associated with the combustion of fossil fuels, which is why it is so important that we use that form of energy.

With that as my beginning point—in this race to the end of my speech—it is not difficult to see where I am going with my brief comments. The UK has 15 existing reactors, generating about 21% of our electricity, and 13 others are at various stages of planning. I am thankful that the Government have announced initiatives and funding for advanced reactors, including £250 million for development, and that there is support for nuclear power in the industrial strategy, as well as specific funding elsewhere.

I would certainly be supportive of a Government strategy regarding the regulated asset base model, which regulates a rate of return for investors during a power plant’s construction. An interesting article that I read through the Royal Society of Chemistry highlighted that the RAB model

I declare an interest because my eldest son is part of the Rolls-Royce team that looks after the reactors in the Astute class submarines that have been so reliable and that keep us safe. As we have heard, large nuclear reactors over 1 GW are proving hard to deliver, not only in this country but worldwide, so small modular reactors may be part of the answer.

It is true that nuclear is the safest and greenest way to generate electricity. It delivers for the environment, which is why I am astounded that green parties around the world campaign against nuclear energy. In Germany, the green coalition forced the Government of the time to abandon nuclear generation. Indeed, it tried to prevent the Czechs, with their Temelin plant, from generating there.

I saw an interesting interview on YouTube the other day with President Putin, who was complaining that the Germans were angry that they were so reliant on Russian gas. He said, “Well, what do they expect? They’ve abandoned their nuclear stations. They’re abandoning their brown coal stations. What do they expect to burn—firewood?” Then he turned, in a rather sinister way, and said, “We have a lot of firewood in Siberia.”

Coal is a dangerous fuel to burn. Statistics from China indicate that, in 2014, there were 931 fatalities in its coalmining industry—the first time in history that the figure had been below 1,000. In fact, between 1996 and 2000, there were an average of 7,619 deaths in the Chinese coal industry, which is 20 deaths per day. When coal is burned, it has an effect on air quality, and statistics I have seen say that nuclear generates 440 fewer deaths per unit than brown coal. In terms of climate change, nuclear is 83 times less likely to produce carbon dioxide than coal. Nuclear is the answer to air quality and to climate change.

Other renewables are not in the clear either. Deaths from photovoltaic solar panels on rooftops make them 16 times more dangerous than nuclear—people fall off roofs—and wind generation, particularly out at sea, is four times more dangerous. Of course, when that issue is raised, people trot out Chernobyl. We need to make it clear that we have learned lessons from Chernobyl. I have been to the Chernobyl plant, and it is not the same sort of plant. I had a Lada car once, and it was not the same as a Rolls-Royce.

We have seen 17,000 cumulative reactor years in 33 countries in the nuclear industry. If we can build in some passive features as well, we will have a great future and the UK will once again be a world leader in nuclear technology.

It is a pleasure to serve under your chairmanship, Mr Paisley. I congratulate the hon. Member for Copeland (Trudy Harrison) on securing the debate.

Nuclear remains the most dependable low-carbon energy source to deploy in the energy mix alongside large-scale renewable projects. We must be open to all research and development of low-carbon and environmentally friendly technologies, just as Finland’s Green party endorses. Nuclear and renewables have a symbiotic relationship. That may change, but from where we stand, it is likely that the greatest advances in technology, such as advanced modular reactors and fusion, will arise from nuclear origins.

My constituency is among the lowest waged in the United Kingdom. The median full-time earnings for 2018 were £21,840—almost £8,000 less than the UK average, and £5,000 lower than the Welsh average. With the rural economy of Wales greatly dependent on ever dwindling public sector jobs and minimum wage leisure and hospitality employment, the development of the future economy of my constituency and county cries out for a range of employment.

Rural Wales suffers generational depopulation as our young people move away to seek job opportunities elsewhere. In Welsh-speaking areas such as Dwyfor Meirionnydd, that is a double loss. It is therefore imperative that the Government recognise the potential of Trawsfynydd, M-SParc and Bangor University to not only grow the economy of north-west Wales but act as catalysts to stimulate supply chains across a region stretching from Caergybi to Cumbria.

I also call on the Government to support their own industrial policy. A small modular reactor or an advanced modular reactor at Trawsfynydd will help to transform not only the economy of Trawsfynydd but the wider supply chain across north Wales and north England. In view of the accepted need to develop an SMR or AMR, coupled with the nuclear sector deal’s proposal to site a thermal hydraulic facility at Menai Science Park in Ynys Môn, it is now surely urgent that the Government publicly recognise that Trawsfynydd is an ideal site for a first-of-a-kind development.

It is a pleasure to serve under your chairmanship, Mr Paisley. I congratulate my hon. Friend the Member for Copeland (Trudy Harrison) on securing this timely debate.

As I see it, continued instability in the middle east, coupled with an increasingly hostile Russian state, means that it is now vital that we once again establish our own independent source of clean, affordable, low-carbon domestic energy, to achieve our energy security. Since the first nuclear power station was connected to the national grid in 1956, nuclear has become a major contributor to the UK’s energy market, with 21% of all electricity now generated in that way. However, with seven stations due to be decommissioned in the next 10 to 15 years, the stark reality is that the UK faces a potential energy gap before new conventional nuclear stations can be brought online. To bridge that gap, we must look towards innovation. In small modular reactors, which take a relatively short period of time to construct—estimated to be between two and five years—I believe we have a ready-made solution.

It is estimated by a UK small modular reactor consortium led by Rolls-Royce that the design, development and production of a fleet of small modular reactors has the potential to create up to 40,000 skilled jobs in the nuclear supply chain and to add more than £100 billion to our economy. Translated to a local level, with Derby being the centre of Roll-Royce’s nuclear operation in the UK, a sustained programme of SMR production in the city would see significant new job opportunities open up for my constituents, as well as in the supply chain.

It is clear that the Government have made a degree of progress in fostering this new technology in partnership with the UK’s civil nuclear sector. The small modular reactor competition was launched in 2016, followed by £56 million to develop and regulate designs in 2017, but with the clock ticking we need to accelerate the UK’s efforts to develop this technology. I therefore urge the Minister to review the Government’s energy strategy and to put a renewed emphasis on supporting the nuclear industry.