Agenda item

A paper was submitted setting out a potential UK Atomic Energy Authority opportunity for the region to position itself as central to the growth of the UK’s Nuclear Industry, to create high value jobs, grow new businesses and support existing businesses to adapt.

The Board was informed that the UK Atomic Energy Authority (UKAEA) had written to all Councils and Local Enterprise Partnerships setting out their intention later in autumn to publish a detailed site specification for the development of a new Nuclear Fusion Reactor prototype. 

It was anticipated that a formal opportunity to bid would be announced shortly.  This was part of the The Spherical Tokamak for Energy Production (STEP) programme - a UKAEA and UK Government initiative to accelerate progress towards commercially viable fusion power, through design and construction of a prototype fusion reactor by 2040.

The Board noted that the UKAEA proposal was to establish a Nuclear Fusion Prototype Reactor somewhere in the UK and presented an opportunity for the region to establish itself as a key player in the UK nuclear sector. 

It was expected that the proposal would align with the Government’s anticipated Energy White Paper.  This was expected to signal a commitment to expansion in renewables, including hydrogen and nuclear power through large scale reactors, small modular reactors, advanced reactors and fusion.

It was proposed that: -

·           The LEP Board signal their support for this opportunity to be fully explored in the context of how it can deliver on the Strategic Economic Plan objectives; looking not just at the physical site opportunities but the business, skills and productivity gains to be secured with the region playing a full part.

·           A small working group with representation from across the four local council areas, the MCA Executive Team and the Nuclear AMRC be established with the objective of preparing a ‘pitch’ to the UKAEA.

·           That the Business Recovery and Growth Board and the Infrastructure and Housing Boards’ engage directly in the process from a supply chain, innovation, business growth and site selection perspective.

·           That the region adopts an open position at the outset to working with places outside of South Yorkshire to build the best UK solution – with the region at the heart of that.

The Board received a presentation from Andy Storer, Head of the Nuclear AMRC, which provided the Board with an overview of the Nuclear AMRC’s Strategy for Impact, details on current and potential new build UK reactor sites, government initiatives and future technologies and investments. 

The Board noted that in relation to UK new build, there was current generation capacity of 10GWe, with most to be retired in 2023-30.  New build of up to 19GWe new capacity had been proposed at 6 sites.  Hinkley Point C was currently under construction. 

The Board noted that the UK small modular reactors (SMRs) programme had the potential to deliver up to 16 power stations by 2050, 40,000 jobs, £52 billion economic value and £250 billion of export potential.

The UK bid to build the world’s first commercial fusion power plant by 2040 was being led by the UKAEA.  There were potential opportunities for the SCR to link with the UKAEA by establishing a test centre being located in Sheffield.  A training centre, design centre and spherical Tokamak for Energy Production (STEP) siting. 

The Board received a presentation from Richard Deakin, Low Cost Nuclear Challenge Director, ISCF, UK Research and Innovation.  The presentation provided the Board with information on the future of low carbon nuclear energy with SMRs and the regional impact on meeting global demands. 

Part of the Government’s Industrial Strategy Challenge Fund was to raise productivity and earning power in the UK.  The UK has an ambitious target to increase its total R&D expenditure to 2.4% of GDP by 2027 (from 1.7%). 

There had been increased funding in research and development by £4.7 billion over 4 years to strengthen UK science and business. 

The presentation provided details on the Low Cost Nuclear Challenge programme phase 1 consortium which was responsible for delivering 11 innovative work packages over 5 years to explore options, routes to market and commercialisation.  The business case for phase 2 had been approved by UKRI and BEIS.  This was currently with Treasury for approval. 

The potential benefits of the Low Cost Nuclear programme from 2030 onwards was presented.  In summary, the programme had the potential of £100Bn GVA, £308m of exports, 40,000 jobs created, high value nuclear skills and training, new factories in regions, primarily a UK supply chain, new IP owned by UK companies and reinvigorate the UK nuclear industry. 

The Chair thanked Andy Storer and Richard Deakin for their interesting and informative presentations. 

The Board stated its support for the opportunity and discussed emerging opportunities around skills development and the skills pipeline.  The Board asked what work was required to enable the SCR to be well-positioned to take advantage of the opportunity so that young people and businesses thrive as a result.  

The Chair said that, via the Education, Skills and Employability Board and Business Recovery and Growth Board, it would be beneficial for the Boards’ to look at supply chain growth in terms of scaling-up existing and potential supply chain providers and also attracting a compliment to the existing base. 

M Lynam reported that the framework for forming the bid was currently being developed and would involve wider consultation with stakeholders.  An update would be presented at a future LEP Board meeting.  

It was noted that the parameters and timescales for the bid were expected to be announced shortly by Government.  With regards to site selection for the Nuclear Fusion Reactor prototype, formal guidance was awaited. 

Active discussions were taking place around site selection with local authorities.  It was noted that there would be expectations around access to water, connectivity, national power grid links and a complex set of regulatory challenges. 

RESOLVED – That LEP Board Members noted the opportunity and endorse early stage work to develop a submission to a UK Atomic Energy Authority proposal for South Yorkshire to be part of the Government’s plans to commercialise and develop Nuclear Fusion technology.