Rolls-Royce Holdings PLC (LSE:RR.) has brought in Qatar as an investor in its new small-scale nuclear reactors business as it seeks permission to begin the official regulatory approval process.
The engine maker said it has asked the government to begin what is usually a four to five year process with Britain’s Office for Nuclear Regulation (ONR).
Last week the FTSE 100 company said it would aim to “proceed rapidly” towards regulatory approval and securing initial sites, after securing £195mln funding from private investors, to add to a promised £210mln of UK state funding.
“This is an important moment for the nuclear industry, as a UK SMR reactor design enters the initial process for regulatory approval for the first time," said Helena Perry, Rolls’ regulatory and safety affairs director in a statement.
Before the ONR approval process begins, Rolls must first get clearance from the government to submit its designs, which is expected by around March next year.
Alongside this, the company is close to agreeing £100mln of investment in the mini nuclear reactors business from the Qatari state.
The deal with Qatar’s investment arm is expected to dilute Rolls-Royce’s 80% stake in the venture, the Daily Telegraph reported, with confirmation of the investment expected this week.
This will take investment in the mini nuclear reactors business to £505mln, which is expected to be less than half the total funding needed, according to investment made by rival projects calculated by the Telegraph.
Earlier this month, Rolls was reported to have teamed up with the state-led Qatar Foundation to launch a multi-billion fund that will invest in new green engineering projects in the UK.