Rolls-Royce Spec Influence
I've followed this story fairly closely.
Mini-nuclear reactors, aka Small Modular Reactors (SMRs), are the future. After all, as the lay would say, 'we've had nuclear powered submarines for how long...?'.
One of those long logical technological evolutions that only now can be seemingly realised. A safe, small-scale, mobile power source at last within our grasp. And we are even getting to grips with making safe the radioactive waste product.
Imagine the impact on the £100bn (yes, billion) clean-up at the iconic Cumbrian coastline site in England's far North West. Not to mention those deep sea concrete beds beyond stormy Scottish shores. Then let's not forget that the current (re)build underway in England's South West, Hinkley Point, has possibly the unwelcome laurel of the world's most expensive ever construction. Only the International Space Station more dear.
Where we initially had the Atomic Age, it perhaps isn't long before a breakthrough brands this new era iAtomic, Nanonuke or something.
There is much contention over whether such machinery quite exists. Possible claimants to sole 'working' prototypes hardly come from trustworthy nations. Yet its arrival appears inevitable.
It's worth pointing out that American Big Tech is doing similar - without recourse to such public funds - to ensure secure, reliable power for their ever growing data centre and ravenous AI-hungry compute.
Rolls-Royce have just been awarded 'preferred bidder' status by the British government to negotiate a contract to start development.
"The Derby-based engineering giant was on Tuesday confirmed as the sole winner of a design competition, beating rivals GE-Hitachi and Holtec International following a two-year selection process."
The Rolls deal has been subject of much broadsheet reporting. At this stage a couple of points relate sharply to our arena.
Of primary note, is that among potential suppliers they alone influenced the spec. That's the clear inference. They were even awarded two hundred million towards early devs.
If you ever wondered if you ought pursue a deal where there is a spec produced and you did not influence it, the overwhelming answer is a firm No.
It's that simple.
Secondly, in this case, the two other competing options remained keen because the original plan was to have more than one supplier.
Which makes perfect sense. Sadly governments have such in short supply.
That option now shelved. So now, no backup, no resilience, and no competition to spur along the path to ever-better solutions and cost-effective delivery.
I myself have been involved in pitches were there is an absolute point of difference - as the current vogue term PoD has it - that only one outfit can provide which holds much attraction. It is sometimes possible to have this separately. Hived off as different project. One that can be realised quicker too. Not dependent on the other, larger whole.
You can even on occasion go for the pilot approach.
In this case, the beaten pair will likely lick their wounds.
As for salivating players the potential rewards are huge;
"The global SMR market is projected to be worth up to £500bn by 2050, according to the International Energy Agency".
From zero to half-a-tril in a quarter-century.
And they will you suspect, chalk this loss down to a government only ever going to choose a company from their own nation. A spec skew which only applies to a handful of nations around the globe. Nothing to do with actual calibre of product, delivery or project fundamentals. Despite the Rolls counter-claims of their tech being 18 months ahead of rivals whilst referencing Czech orders. They'll be back.
Will you be?