£102m government backing for nuclear and hydrogen technology in the UK

Nuclear power plant

The UK Government has announced new funding to support what it calls “clean energy production in the UK”, which includes £77 million for nuclear fuel production and the development of the next generation of advanced nuclear reactors.

The funding commitment also includes £25m for technologies that can produce hydrogen from sustainable biomass and waste, while removing carbon dioxide from the atmosphere.

The UK Government says it is committing to “new and innovative” nuclear energy with the announcement of funding worth up to £60 million to “kick start” the next phase of research into the new High-Temperature Gas Reactor (HTGR), a type of Advanced Modular Reactor (AMR), which it says could be up and running by the early 2030s.

The funding, from the Advanced Modular Reactor R&D programme, aims to get a demonstration project of the engineering design up and running by the end of the decade.

This funding package will strengthen our energy security, by ensuring we have a safe and secure supply of domestic nuclear fuel services.

Energy and Climate Minister Graham Stuart said: “This funding package will strengthen our energy security, by ensuring we have a safe and secure supply of domestic nuclear fuel services – while also creating more UK jobs and export opportunities.”

Government says to support hydrogen innovation, it has committed £25m to accelerate the deployment of hydrogen bioenergy with carbon capture and storage (BECCS).

The funding will go directly towards progressing BECCS projects from the design stage to demonstration, supporting the technology to eventually become integrated as part of our everyday energy system, the Government says.

Government is also consulting on a proposal for new domestic-scale gas boilers sold from 2026 to be capable of being powered by hydrogen, which it says is to prepare for any potential future transition to the use of low-carbon hydrogen for heating.

Energy Minister Lord Callanan said: “With its potential to go one step further than net zero and be carbon negative – removing greenhouse gas emissions from the atmosphere – this hydrogen technology will be crucial to achieving our climate goals.

“Our £25m government funding to develop this technology will help unlock private investment and generate new green jobs – all while cutting carbon emissions.”

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