Investing.com -- Rolls-Royce (OTC:RYCEY) shares rose more than 2% in early trading Tuesday following the announcement that its Rolls-Royce SMR division has been selected by Great British Nuclear (GBN) to build three small modular reactor (SMR) units in the United Kingdom.
The selection by GBN concludes a two-year competitive process and positions Rolls-Royce SMR to contribute to the U.K.’s future energy landscape.
The company flagged that its SMR technology is 18 months ahead of competitors in the U.K.’s independent industry regulatory assessment, which is seen as a crucial "first mover advantage" in the burgeoning SMR market.
Rolls-Royce anticipates this success will generate employment, bolster the domestic supply chain, and contribute to broader economic growth, including opportunities for international exports.
Tufan Erginbilgic, CEO of Rolls-Royce, stated that the decision is a "very significant milestone" and a "vote of confidence in our unique nuclear capabilities, which will be recognised by governments around the world."
He added, "I believe the value of Rolls-Royce SMR will grow materially from here as we successfully execute and deliver on the potential of this venture.”