Government Announces £120m Future Nuclear Enabling Fund

Funding is being made available to help nuclear energy construction projects in the UK.

The Future Nuclear Enabling Fund (FNEF) has been set up to develop new nuclear energy projects across the UK, as committed to in the Government’s British Energy Security Strategy.

The Fund will stimulate competition in the industry and unlock investment across the UK. It will provide targeted, competitively-allocated grants which will help nuclear construction projects, including small modular reactors, to attract the private investment they need to help make them a reality.

The FNEF is expected to offer opportunities to projects in every region of the UK and create high-skilled jobs, as well as boosting the resilience and capability of UK nuclear supply chains.

The £120 million fund is expected to support a limited number of nuclear projects through grant funding, to be awarded following a competitive process.

Businesses in the nuclear industry, and developers of potential new nuclear projects, can register their interest in funding, with grant awards expected to start later this year.

The FNEF will be open to established nuclear market players and new entrants, including consortia, and may include technology vendors, developers, and/or operators.

Business and Energy Secretary Kwasi Kwarteng said:

‘By encouraging new companies to come forward and build in Britain, we can spur greater competition in the market to cut development costs so consumers benefit in the long-term.

‘Nuclear is central to our long-term plan to bolster the UK’s energy security with cheaper, cleaner, home-grown power, while creating thousands of high-skilled jobs across our country.’

The Government aims to start awarding funding in the summer of 2022. Applications are likely to open in July and close in August 2022. Further details will be provided when available.

(This report was the subject of a GRANTfinder Newsflash.)