£2.6 billion contract paves the way for three small reactors in Wylfa
Key Facts
Rolls-Royce SMR and the UK’s Nuclear Energy Agency signed a contract on 13 April 2026 to begin work on delivering three small nuclear reactors at Wylfa in north Wales. The company said the contract allows work on the project to start immediately, after Wylfa was selected in November 2025 to host Britain’s first reactors of this type. The agreement opens the site-specific design phase and orders key components from the supply chain, while expanding the recruitment programme needed to deliver the three units. The company’s chief executive said, "This contract opens the way to delivering our first three units at Wylfa." The agreement puts the project into a preparatory implementation phase, while actual construction remains tied to a later stage and investment and regulatory conditions.
The government aims for the three reactors to provide at least 1.4 gigawatts of clean, secure electricity as part of a multi-billion-pound programme. The 2025 Spending Review allocated £2.6 billion to the programme over the review period to enable its delivery. Rolls-Royce SMR was also made eligible for up to £599 million in funding from the National Wealth Fund to support completion of the reactor’s generic design. The company says each plant will produce low-carbon electricity enough to power one million homes for more than 60 years. In announcing Wylfa’s selection, the government said investment at the site would exceed £2.5 billion and that the project’s output would be equivalent to the needs of about 3 million homes.
Job estimates vary by scope and project stage: the government expects about 3,000 jobs on site at peak construction, alongside thousands of supply-chain jobs. Rolls-Royce SMR says the project will provide 3,000 jobs near Wylfa and an additional 5,000 jobs nationally. The government figure reflects on-site jobs at peak construction, while the company’s estimate includes local roles and additional jobs across the country. On procurement, the UK’s Nuclear Energy Agency said the value of contracts it had awarded since its establishment in 2023 was close to £900 million, with more than 70% going to companies registered in the UK. Its chief executive said the agency was on track to deliver at least 70% of the value of the small-reactor fleet through UK suppliers following competitive tenders.
The contract comprises two phases. The first focuses on site-specific design for three units at Wylfa, while the second covers construction, supply, installation and commissioning. The second phase does not begin automatically: the department requires a positive final investment decision and further approval of the business case. This condition makes the current phase a preparatory step within a broader programme, rather than an announcement that plant construction is starting. Current work, including orders for key components, falls under design and supply preparation. The government’s eventual target is three reactors with capacity of at least 1.4 gigawatts, while the move to construction remains subject to meeting the decision criteria and securing approvals.
The regulatory process is proceeding alongside design preparation. The Office for Nuclear Regulation said in June that technical engagement specific to the Wylfa project was expected to begin during the 2026/27 financial year. A public consultation and a stakeholder consultation on the generic design assessment are scheduled to launch in February 2027, according to the Environment Agency. These stages form part of the design development and regulatory assessment process before the project moves to construction and operation. In the market, Rolls-Royce shares, traded under the ticker RYCEY, closed at $15.53 on 23 October 2026. The UK’s 2026 Budget is scheduled for 28 October, according to the Treasury.