Britain risks losing its leadership in the nuclear race to manufacture small modular reactors (SMRs) unless the Starmer government speeds up its decision-making, the boss of Rolls-Royce has warned.
Tufan Erginbilgic, who has seen a rapid rise in the engineer and aircraft engine maker’s share price since joining, said: ‘There’s no other private company in the world that has the capabilities of Rolls-Royce, therefore we should be the leader in micro reactors. Britain’s process needs to deliver without delay now.’
Britain’s Energy Department, led by Ed Miliband, has insisted on an open auction for next generation micro nuclear reactors, backed by nuclear power licensing authorities.
But long delays are conceding the lead to rivals such as Hitachi-GE and Canada’s Westinghouse.
Fired up: Tufan Erginbilgic has turned around the engine-maker in just two years
Demand for SMRs is set to soar as Silicon Valley embraces the idea to keep energy-hungry data centres needed for processing the artificial intelligence revolution running.
Rolls-Royce has been pioneering SMRs for more than a decade using the same nuclear-powered turbines deployed in submarines.
The Government has contributed £210 million to this. But Erginbilgic said: ‘Britain must speed up if the supply chain capacity and export opportunity isn’t to go elsewhere.’
Rolls-Royce shows what’s possible to Unilever and BP
Several of the biggest beasts of UK corporate life were in the limelight this week, writes Alex Brummer. The contrast in leadership styles and outcomes could not be starker.
The slow pace of change at Unilever saw the chief executive Hein Schumacher thrown overboard in record time for an energised, Argentine-born replacement Fernando Fernandez.
The long-awaited capital markets day at BP, designed to signal a rapid change of direction, did nothing to curb the unrest among investors with activist Elliott leading the charge against an ineffectual board, led by chairman Helge Lund.
In contrast, one doesn’t have to look very far to see the benefits of regime change. Rolls-Royce boss Tufan Erginbilgic demonstrated what transformation can do for investors, workforce confidence, shareholders and, most important of all, for UK plc.
The latest financial results, accompanied by an upgrade of prospects, saw shares hit a record having climbed by more than fivefold over the last two years.
Yet, not long ago, amid Covid, Rolls looked in danger of being renationalised when airlines stopped flying. Tufan’s mobilisation of a highly skilled workforce, giving it focus, purpose and alignment with management goals has worked.
Equally promising is the prospect for exploiting its small modular reactor technology at a time when data centres put enormous pressure on power grids. The Czech Republic is showing faith in what Rolls can do, and others will follow.
Investors are enjoying a dizzying journey fuelled by a restoration of the dividend and a £1billion share buyback. Think what might be possible at Unilever and BP.
> Read more: Rolls-Royce powers change
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .