UK and US unveil nuclear energy deal ahead of Trump visit

The UK and US are set to sign an agreement aimed at accelerating the development of nuclear power.

The move aims to generate thousands of jobs and strengthen Britain’s energy security.

It is expected to be signed off during US President Donald Trump’s state visit this week, with both sides hoping it will unlock billions in private investment.

Prime Minister Sir Keir Starmer said the two nations were “building a golden age of nuclear” that would put them at the “forefront of global innovation”.

The government has said that generating more nuclear power can cut household energy bills, create jobs, boost energy security and tackle climate change.

The new agreement, known as the Atlantic Partnership for Advanced Nuclear Energy, aims to make it quicker for companies to build new nuclear power stations in both the UK and the US.

It will streamline regulatory approvals, cutting the average licensing period for nuclear projects from up to four years to just two.

The deal is also aimed at increasing commercial partnerships between UK and US companies, with a number of deals set to be announced.

Key among the plans is a proposal from US nuclear group X-Energy and UK energy company Centrica to build up to 12 advanced modular nuclear reactors in Hartlepool, with the potential to power 1.5 million homes and create up to 2,500 jobs.

The broader programme could be worth up to £40bn, with £12bn focused in the north east of England.

“It’s great that we can co-operate with our friends in the US and help build up the expertise we’ve got in the UK and US to speed things up,” the chief executive of Centrica, Chris O’Shea, told the BBC’s Today programme.

He said he expected the nuclear power expansion to “bring very stable prices to UK consumers” in the long term.

“This will allow more people to have certainty around their energy costs and allow them to plan better.”

Small modular reactors (SMRs) work on the same principle as large reactors, using a nuclear reaction to generate heat that produces electricity.

However, they are smaller, with up to a third of the generating output of a typical large reactor.

The modular element means they would be built to order in factories – as a kit of parts – then transported and fitted together, like a flat-packed power station. However, the SMR industry is still young, and many different designs are being investigated.

Other plans under the UK-US agreement include multinational firms such as Last Energy and DP World working together on a micro modular reactor at the London Gateway port. This is backed by £80m in private investment.

Elsewhere, Holtec, EDF and Tritax are also planning to repurpose the former Cottam coal-fired plant in Nottinghamshire as a nuclear-powered data centre hub.

This project is estimated to be worth £11bn and could create thousands of high-skilled construction jobs, as well as permanent jobs in long-term operations.

Beyond power generation, the new partnership includes collaboration on fusion energy research and an end to UK and US reliance on Russian nuclear material by 2028.

Energy Secretary Ed Miliband said: “Nuclear will power our homes with clean, homegrown energy and the private sector is building it in Britain, delivering growth and well-paid, skilled jobs for working people.”

US Energy Secretary Chris Wright said the agreement would bring about a “nuclear renaissance”, adding that it would enhance energy security and meet growing global power demands, particularly from AI and data infrastructure.

Sir Keir has previously said he wants the UK to return to being “one of the world leaders on nuclear”.

In the 1990s, nuclear power generated about 25% of the UK’s electricity but that figure has fallen to around 15%, with no new power stations built since then and many of the country’s ageing reactors due to be decommissioned over the next decade.

In November 2024, the UK and 30 other countries signed a global pledge to triple their nuclear capacity by 2050.

Earlier this year, the government announced a deal with private investors to build the Sizewell C nuclear power station in Suffolk.

Its nuclear programme also includes the UK’s first small modular reactors (SMRs), which will be built by UK firm Rolls Royce.