Polish small nuclear plant developer SGE targets £35 billion fleet in Britain

By Susanna Twidale

LONDON, July 2 (Reuters) - Poland-based SGE plans to build a fleet of 14 small nuclear reactors at a total cost of £35 billion ($46.5 billion), it said on Thursday, targeting power from the first project by 2034.

Britain has backed the development of small modular reactors (SMRs) to help to increase energy security and meet climate targets, launching an Advanced Nuclear Framework this year to support development of privately funded projects.

SGE plans to host six 300 megawatt reactors at its first site, with two further sites accommodating four units each, capable of producing a total of 4.2 gigawatts, enough electricity to power about eight million homes.

Michał Solowow, founder of SGE, told Reuters that Britain offers an attractive regulatory market for nuclear power and the company would seek investors for the projects once it has secured government backing through contracts for difference (CfD).

Under the CfD scheme, project developers take on construction risk but are given a guaranteed strike price for the electricity produced. If wholesale power prices go below that level, the government covers the difference, with the money usually recovered through electricity bills.

If prices go above the strike price, producers pay back the difference and money can be deducted from bills.

"We are not making money from the construction; we are only making money when the electrons go to the grid,” Solowow said.

Solowow said the company has identified three potential locations, one of which SGE plans to buy from the government.

Britain’s Great British Nuclear owns the Wylfa site in Wales and Oldbury site in England. The Wylfa site has already been chosen to host a Rolls-Royce SMR project.

Solowow said the company has had advanced discussions with an operator for the plants and expects to announce the outcome later this year.

The projects will use GE Vernova Hitachi BWRX-300 technology, which is being assessed by Britain's Office for Nuclear Regulation.

SGE is also planning to build a large fleet of SMRs in Poland.

($1 = 0.7532 pounds)

(Reporting by Susanna TwidaleEditing by David Goodman)