Qatar’s sovereign wealth fund is to invest £85 million into Rolls-Royce’s Government-backed scheme to build mini nuclear power stations in the UK.
Rolls-Royce Small Modular Reactor, which is majority-owned by the engineering giant, has been set up to develop sites that are around a tenth of the size of traditional reactors.
Qatar Investment Authority (QIA) will take a 10% stake in the venture as a result of the investment.
Rolls-Royce SMR is now “full funded” after receiving almost £500 million worth of investment, the company said.
Warren East chief executive officer of Rolls-Royce Group, said: “I am tremendously pleased to announce that we have further strengthened our relationship with Qatar, through QIA’s investment in the Rolls-Royce SMR business.
“We have successfully raised the capital we need to establish Rolls-Royce SMR and it is encouraging to confirm that the business is now set up to succeed.”
Mansoor bin Ebrahim Al-Mahmoud, chief executive officer of QIA, said: “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.”
The Business Secretary, Kwasi Kwarteng said: “This investment is a clear vote of confidence in the UK’s global leadership in nuclear innovation and follows the £210 million of Government investment in the development of small modular reactors.
“It represents a huge step forward in our plan to deploy more home-grown, affordable clean energy – ensuring greater energy independence for the UK, highly skilled jobs and bringing cheaper, cleaner electricity to people’s homes.”
Shares in Rolls-Royce were 4.1% lower at 109.5p in early trading.