Nuclear Developer X-Energy Issues UK Investment Warning Over Regulatory Uncertainty

A nuclear power developer backed by Amazon has issued a stark warning about potentially withdrawing its UK investment plans unless the government provides clear regulatory and financial frameworks. X-Energy, headquartered in Maryland, USA, is currently negotiating with French energy giant EDF regarding the construction of next-generation nuclear units at the Hartlepool site in County Durham.

The proposed development would replace the existing large-scale reactor scheduled for decommissioning in 2027. X-Energy, which also counts Dow among its major investors, is already making progress with its first advanced modular reactor on the Texas Gulf Coast, benefiting from substantial US government support.

Clay Sell, X-Energy’s chief executive, emphasised that while the UK remains their preferred location for their first European Xe-100 reactors, the company requires greater certainty regarding government support mechanisms. “We would like to go big in Europe from a base in the UK but we don’t have to do a base in the UK. We’ve got to get real and we’ve got to get going, otherwise we’re going to go someplace else,” Sell stated.

The company’s requirements include designated sites for advanced modular reactors, government backing for initial development work alongside private capital, and construction funding through the regulated asset base model. These reactors, with an 80-megawatt capacity each, can be configured into larger 320MW plants and offer the advantage of remote construction with on-site assembly.

X-Energy’s innovative technology utilises helium as a coolant instead of water and features proprietary fuel capable of withstanding four times the temperature of conventional nuclear fuel. The company recently secured a £700 million funding round led by Amazon, targeting 5 gigawatts of power generation by 2039.

The Department for Energy Security and Net Zero responded to these developments, stating: “New nuclear power stations, including advanced modular reactors, will play an important role in helping the UK achieve energy security and clean power while securing thousands of good, skilled jobs.”