File photo: Reuters
Rolls-Royce Holdings has reached an agreement under which Qatar will invest in the British company’s small modular reactor business.
The company already signed a deal with Qatar to invest billions in green engineering projects. This latest move will see Rolls-Royce give up some of its stake in the SMR project, according to the Daily Telegraph, as Qatar Investment Authority (QIA) takes a 10% equity share.
Qatar will invest 85 million pounds ($112 million) in Rolls-Royce SMR Limited, the separate unit created for the project. The Rolls-Royce SMR business is now fully funded, the company said in the statement.
Mansoor bin Ebrahim Al-Mahmoud, Chief Executive Officer of QIA commented: "QIA is investing in the energy transition and funding the technologies that enable low carbon electricity generation. We will continue to seek out investments that align with our mandate to deliver long-term value for future generations through responsible sustainable investments."
Rolls-Royce, which has seen its aerospace business gutted by the pandemic, is looking to branch out into new technologies including small nuclear reactors. Chief Executive Officer Warren East has said he wants to rebalance the business in the wake of the coronavirus.
UK Business Secretary Kwasi Kwarteng said the investment "is a clear vote of confidence in the UK’s global leadership in nuclear innovation.”
The government invested 250 million pounds in the project as part of the latest funding round, which has given Rolls enough money to proceed with obtaining design approval and identifying locations for on-site assembly of its plants.
