South Yorkshire to become hub for UK’s first mini-nuclear reactor factory

South Yorkshire has been selected by US energy giant Holtec to host Britain’s first factory dedicated to building the next generation of nuclear reactors. The £1.5bn facility is expected to create up to 3,000 skilled jobs, providing a significant economic boost to the region.

The landmark project, which will manufacture components for small modular reactors (SMRs), represents a major step forward for the UK’s nuclear ambitions. SMRs, seen as a potentially transformative technology, are designed to be quicker and cheaper to produce than traditional large-scale reactors.

Holtec has shortlisted several potential locations across the county, including sites around Doncaster, where Energy Secretary Ed Miliband has his constituency. South Yorkshire’s industrial heritage and proximity to Sheffield Forgemasters — which produces complex castings critical for reactor construction — make the region an ideal choice for the factory.

Gareth Thomas, director of Holtec Britain, said: “South Yorkshire overcame stiff competition from other areas of the UK to be our preferred location for our advanced SMR factory.”

SMRs could become the cornerstone of the UK’s nuclear revival, helping the nation meet its clean energy targets while reducing dependency on fossil fuels. Unlike traditional reactors, SMRs are constructed using modules that can be manufactured in factories and assembled on-site, speeding up production timelines and lowering costs.

South Yorkshire mayor Oliver Coppard welcomed the decision, highlighting the region’s deep engineering roots: “We’re building on hundreds of years of innovation and engineering heritage to power the clean energy transition in the UK and beyond.”

While SMRs offer the promise of cheaper and more efficient nuclear power, challenges remain. The technology is yet to be commercially proven and still generates radioactive waste, for which no long-term storage solution has been implemented. Despite these hurdles, Holtec is competing with four other companies — Rolls-Royce, Westinghouse, GE Hitachi, and NuScale — for government funding to develop the UK’s first SMR reactors.

The government agency Great British Nuclear is expected to narrow down the shortlist later this month, with two companies likely to be chosen by early 2025 to develop sites for the UK’s nuclear future.