UK backs Rolls-Royce for nuclear, opening up gases chance

UK-based Rolls-Royce SMR, majority-owned by Rolls-Royce, has been selected by the UK’s Great British Energy – Nuclear to develop a new fleet of small modular nuclear reactors (SMRs), in a £2.5bn initiative the UK government says will “bolster energy security, create jobs and reduce carbon emissions.”

But beyond the headlines, the project could also create an opportunity for industrial gas suppliers, especially those providing high-purity nitrogen, argon, helium, and uranium hexafluoride.

The chosen SMR design uses enriched uranium fuel and complex fabrication processes. These rely on various gases across the nuclear fuel cycle, from uranium conversion to fuel rod integrity testing.

Enrichment involves converting uranium oxide into uranium hexafluoride (UF6), which is then heated to form a gas – and fed into centrifuges. These centrifuges separate uranium isotopes, increasing the proportion of fissile U-235. The enriched uranium is then condensed and prepared for fuel fabrication.

While enrichment occurs upstream and outside the UK, the production and handling of UF6 is essential to any increase in nuclear capacity. It is also highly regulated under various laws, mainly focused on safe transport and storage.

The fabrication of nuclear fuel rods involves high-precision welding and testing, often in inert gas environments. Nitrogen is often used to prevent oxidation, while helium or argon can be used for leak detection and integrity testing.

Driving UK supply chains

As Rolls-Royce scales its SMR production over the four-year project, demand for these high-purity gases could increase, especially in the UK if local supply chains are developed.

Although Rolls-Royce SMRs are not helium-cooled (unlike some next-gen high-temperature gas-cooled reactors), helium is still used in testing and component validation phases. Any UK-based expansion of advanced reactor R&D could further impact helium demand and supply chains.

The localisation angle of the SMR programme suggests that domestic supply chains – including industrial gas suppliers – are likely to be favoured. This was championed by UK Chancellor of the Exchequer Rachel Reeves, who said, “the UK is back where it belongs.”

“We’re backing Britain … to ensure 70% of supply chain products are British built, delivering our plan for change through more jobs and putting more money in people’s pockets,” she added.

How an SMR compares with a conventional nuclear reactor. ©International Atomic Energy Agency

This could open up opportunities for UK-based cylinder manufacturers, purification firms, and specialty gas providers to align with the needs of the country’s nuclear power sector, which the Nuclear Industry Association values at £20bn.

It could also position Britain as a frontrunner in developing breakthrough technology for the global SMR market, projected to reach nearly £500bn by 2050, according to the International Energy Agency.

These developments support the UK’s aim to end what Energy Secretary Ed Miliband called the “no-nuclear status quo.”

“[We are] entering a golden age of nuclear [energy] with the biggest building programme in a generation,” he said.

SMR development could also be key to the UK reaching its decarbonisation goals. Speaking in 2022, Tom Greatex, CEO of the UK’s Nuclear Industry Association said that “nuclear is going to be the bedrock of our future mix to remove our reliance on volatile fossil fuels, and to back up renewables.”

Currently, around 15% of the UK’s electricity comes from nuclear, but the Nuclear Industry Association (NIA) aims to expand this to 24GW by 2050, meeting roughly 25% of the country’s power needs.

While the timeline for deploying SMRs extends into the 2030s, industrial gas companies supplying to the nuclear sector may already be eyeing long-term contract opportunities. With nuclear back on the UK’s strategic agenda, the industrial gases industry could have an important role to play enabling this part of the energy transition.