- Small modular reactors to be deployed
- Up to £40 billion in economic value
- Long-term UK-US agreement
British gas owner Centrica (CNA) has announced a joint development agreement with US-based X-Energy Reactor Company to deploy Advanced Modular Nuclear Reactors in the UK.
Centrica shares were one of the biggest gainers in the FTSE 100 index after jumping nearly 3% to 164.9p in early trading, taking gains in 2025 to 20%, compared with a 12% advance in the blue-chip benchmark.
The news landed ahead of a two-day visit from US president Donald Trump on Tuesday (14 Sep) during which he is expected to sign a deal with prime minister Keir Starmer in a nuclear tie-up between the two countries.
Starmer said: ‘These major commitments set us well on course to a golden age of nuclear that will drive down household bills in the long run.’
GOLDEN AGE
The agreement represents the first stage in a new trans-Atlantic alliance which could ultimately mobilise at least £40 billion in economic value according to Centrica.
The companies have identified an adjacent site to Centrica’s existing Hartlepool site to deploy 12 X-Energy’s small modular reactors, enough to power 1.5 million homes. Hartlepool’s existing nuclear power station is schedule to cease electricity generation in 2028.
The new agreement also aims to make it quicker for companies to build new nuclear power stations in the UK and US. Centrica will provide initial project capital, and the first electricity generation is expected in the mid-2030s.
BOLD STEP
Centrica’s chief executive Chris O’Shea commented: ‘Our partnership with X-energy marks a bold step forward in delivering advanced nuclear technology that is not only scalable and secure, but also vital to clean industry and powering homes.
‘From Sizewell C to Hartlepool, we are backing Britain’s energy future - and building it.’
AJ Bell investment director Russ Mould cautioned: ‘It is telling that the first US SMR deployment project – the Carbon Free Power Project – was cancelled less than two years ago due to rising costs. This is a new area and the path towards operational SMRs may not be a smooth one.
‘Investors will likely have to be patient as they wait for this venture to make a significant contribution to Centrica’s top and bottom line,’ concluded Mould.
Disclaimer: Financial services company AJ Bell referenced in the article owns Shares magazine. The author (Martin Gamble) and the editor of the article (James Crux) own shares in AJ Bell.
