Why Trump is 'Disappointed' by UK's Rolls-Royce Nuclear Deal
The UK government's decision to award its flagship small modular reactor (SMR) contract to British manufacturer Rolls-Royce has triggered an unusually public rebuke from US diplomats, working on behalf of the Trump administration.
UK Prime Minister Keir Starmer officially confirmed on 13 November (after months of lead-in) that three SMRs will be built at Wylfa, on the island of Anglesey in North Wales.
The government plans to invest US$3.3bn in the project, which is expected to generate 470 MW per unit – enough to power around 1.1 million homes.
The decision to choose Rolls-Royce over its US competitor Westinghouse Electric Company has drawn some sharp criticism from Washington.
Warren Stephens, the US Ambassador to the UK, published a statement ahead of the UK announcement expressing his disappointment with the news.
"We are extremely disappointed by this decision, not least because there are cheaper, faster and already-approved options to provide clean, safe energy at this same location," he wrote.
The ambassador's intervention went as far as to suggest that Britain should choose "a different path" in Wales.
Westinghouse deal underpins US frustration
The US frustration stems partly from a recent US$80bn deal signed by the Trump administration with Westinghouse last month.
Under that agreement, Westinghouse will build several large reactors, with the Trump administration potentially taking a stake in the company, which has struggled in recent years.
The timing of the UK's announcement appears to have caught Washington off guard, particularly given the nuclear pact the two countries made during Trump’s state visit earlier in the autumn.
A source close to the UK government has defended the decision to award the contract to Rolls-Royce as the right one for the UK.
"This is the right choice for Britain. This is our flagship SMR programme, producing homegrown clean power with a British company and we have chosen the best site for it," the source told The Guardian.
The UK Government views the project as central to its industrial strategy, with Rolls-Royce planning to build the reactors in Derby before transporting them to site.
The UK’s nuclear energy future
While the ambassador's intervention is unlikely to reverse the Wylfa decision, it may influence future choices on larger reactors, which Westinghouse is capable of making.
The government plans to report on potential sites for gigawatt-scale reactors through Great British Energy in the near future.
Sites under consideration right now include Torness east of Edinburgh and Hunterston west of Glasgow.
These larger reactors would follow the 3.2GW reactors under construction by French state-owned EDF at Hinkley Point C in Somerset and Sizewell C in Suffolk.
Westinghouse could position itself as a candidate for these future projects, particularly given the diplomatic pressure now being applied.
Industry response divided
The nuclear industry has offered mixed reactions to the announcement.
Tom Greatrex, the CEO of the Nuclear Industry Association, welcomed the Wylfa project as “an exciting opportunity for UK technology, our domestic supply chain and skilled workforce”.
However, Sharon Graham, General Secretary of Unite, criticised the decision to build three smaller reactors rather than one larger installation.
Graham argued that "failure to support a gigawatt nuclear power station at Wylfa would be a huge missed opportunity in securing the UK's energy security", suggesting larger reactors would create more jobs for British workers.
Export ambitions drive UK strategy
The Labour government has embraced nuclear energy as part of its net zero strategy, viewing it as both a domestic energy solution and a potential export industry.
Ed Miliband, the UK’s Energy Secretary, says: "Nuclear will power our homes with clean, homegrown energy and the private sector is building it in Britain, delivering growth and well-paid, skilled jobs for working people."
Rolls-Royce SMR, majority-owned by the FTSE 100 engineering group, already has international interest from the Czech Republic, which could order up to six reactors.
The company has more than 1,000 employees working on technology that will be installed at Temelín in the Czech Republic.
Whether the UK can balance its domestic manufacturing ambitions with maintaining strong US ties on nuclear energy remains to be seen.
