The UK energy sector may see up to 960 MW of advanced nuclear capacity at Hartlepool under a newly signed agreement between Centrica and X-Energy, marking a significant shift toward small-modular reactor deployment as the country contends with retiring baseload assets and rising decarbonization targets.
The Joint Development Agreement (JDA) targets full-scale development starting in 2026, with first power generation from X-Energy’s Xe-100 AMRs expected in the mid-2030s.
Hartlepool was chosen as the preferred location for up to twelve Xe-100 reactors consistent with the UK government’s target of up to 6 GW of AMR installed capacity. The site is adjacent to the existing Hartlepool nuclear plant, scheduled for shutdown in 2028, providing continuity of skilled labor and existing infrastructure—and benefiting from its designation under the Government’s National Policy Statement for new nuclear projects.
Each Xe-100 unit is rated at approximately 80 MW of electrical output. The twelve-unit configuration at Hartlepool would therefore deliver 960 MW—enough clean electricity to serve about 1.5 million homes—while creating lifetime economic value exceeding £12 billion and engaging both developers and regional supply chains.
Deploying advanced modular reactors at scale in the UK encounters several interlinked challenges. First, licensing and regulatory approval remain complex. Although the Hartlepool site is already designated for new nuclear, the specific Xe-100 design must undergo safety assessments, design approval, and regulatory scrutiny. The UK Department of Energy Security and Net Zero’s Future Nuclear Enabling Fund (FNEF) has already provided grants to X-Energy and Cavendish Nuclear—£3.34 million matched by X-Energy—for studies including supply chain development, constructability, and fuel management.
Second, cost and financing risks persist. The project is being developed with initial capital from Centrica, and further equity partners are being sought. But construction of AMRs—though intended to be more modular and quicker to build than traditional reactors—still demands large upfront investments. The companies estimate the full economic value of the Hartlepool project at over £12 billion, but actual capital expenditure and project risk (e.g. schedule, supply chain, licensing) will heavily influence discount rates and investment returns.
Third, capacity and scalability are uncertain. While up to 6 GW of Xe-100 capacity is planned under the Centrica/X-Energy deployment roadmap, matching that scale will depend on multiple successful deployments, supply chain maturity (especially for TRISO-type fuels and heat-grade materials), and stable policy support—including clarity on pricing, grid integration, and national nuclear strategy. The HTGR (High-Temperature Gas-Cooled Reactor) design with TRISO (tri-structural isotropic) fuel is viewed favorably by DESNZ as promising among advanced technologies, but HTGRs and small modular reactors (SMRs/AMRs) still represent a minority among nuclear projects globally, with many designs remaining in pilot, regulatory assessment, or demonstration phases.
One lever is lifecycle extension of existing nuclear plants to bridge the gap. In September 2025, Centrica and EDF extended the operational life of the Hartlepool and Heysham 1 Advanced Gas-Cooled Reactors (AGR) to March 2028 after graphite core inspections found no serious cracking. This extension adds roughly 15 TWh of generation to the UK grid and helps maintain baseload capability while AMRs are being developed and built.
Another solution lies in domestic supply chain development. The FNEF matched funding programme seeks to ensure that up to 80% of the value of Xe-100 projects flows to UK firms. Partnerships with Sheffield Forgemasters, NAMRC, Kier, and others are part of the preparatory work. Local production of TRISO-X fuel and reactor components could reduce cost premiums, shorten lead times, and improve economic returns.
Also essential is the alignment of industrial demand for high-temperature heat. Hartlepool’s proposed AMRs are intended not just for electricity generation but also for supplying industrial heat—potentially benefiting sectors on Teesside and elsewhere facing high energy costs and decarbonisation pressure. The ability to co-generate electricity and process heat increases the value proposition for AMRs over purely electrical generation, especially where hydrogen, synthetic fuels, or industrial steam services are being considered.
Finally, policy mechanisms and funding models will play a critical role. Use of regulated asset base (RAB) models, construction levies, or other forms of government support will affect project risk, consumer cost, and investment returns. Centrica has already indicated that some government backing may be required.
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