Rolls-Royce strikes nuclear deal with Japan, likely to be tax-payer funded

potential support that could eventually include
taxpayer-backed loans, debt financing or direct investments from the
National Wealth Fund.
Sir Keir Starmer and Sanae Takaichi set to sign agreement to develop advanced modular reactors
Matt Oliver, Industry Editor
Britain will join forces with Japan to build mini nuclear reactors capable
of powering factories, data centres and military bases. Sanae Takaichi,
Japan’s prime minister, and Sir Keir Starmer will sign an agreement at a
ceremony in Downing Street on Sunday, as part of a push to strengthen
energy cooperation between Tokyo and London.
The tie-up will lead to
British engineering giant Rolls-Royce working with the National Nuclear
Laboratory and its Japanese counterpart to develop advanced modular
reactors (AMRs) and the fuel needed to power them, The Telegraph can
disclose.
Japan has been testing a high-temperature, gas-cooled reactor for
decades, but the technology remains unproven commercially. Under the
partnership, the Japan Atomic Energy Agency will share its extensive safety
data with Rolls-Royce to help the company build a demonstrator AMR in the
UK by the mid-2030s.
Rolls is understood to have held discussions with the
Government about potential support that could eventually include
taxpayer-backed loans, debt financing or direct investments from the
National Wealth Fund.
Under the agreement, Rolls-Royce, the UK and Japanese
national laboratories have also agreed to explore options for supplying the
novel kind of fuel the AMRs will use. Known as tri-structural isotropic
particle fuel (TRISO), it is seen by scientists as inherently safer than
more conventional nuclear fuel because it can be left to cool on its own.
TRISO fuel is made by taking poppy seed-sized pieces of uranium and
wrapping them in layers of ceramic material that are almost as tough as
diamond. These pellets are then compacted into hexagonal blocks or billiard
ball-sized “pebbles”, which can be loaded into a nuclear reactor. The
Government has already announced a £300m programme with Urenco, a nuclear
fuel company, to build a UK enrichment facility capable of providing the
uranium needed to make TRISO pellets.
Telegraph 14th June 2026, https://www.telegraph.co.uk/business/2026/06/14/rolls-royce-strikes-nuclear-deal-with-japan/
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