REG - Rolls-Royce Holdings - Rolls-Royce and QIA announce nuclear investment

Rolls-Royce HoldingsAnnouncement

20/12/2021 07:00

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RNS Number : 1190W  Rolls-Royce Holdings plc  20 December 2021

Rolls-Royce plc, Qatar Investment Authority, Announce Agreement to Invest in
New Low Carbon Nuclear Power Business

20 December 2021, London and Doha: Rolls-Royce Group has reached agreement
with Qatar Investment Authority (QIA), the sovereign wealth fund of the State
of Qatar, to invest GBP 85 million in Rolls-Royce SMR Limited (Rolls-Royce
SMR).

Rolls-Royce SMR is building a new technology solution to deliver affordable,
low carbon, nuclear power. A single power station will occupy around one tenth
of the size of a conventional nuclear generation site and power approximately
one million homes.

QIA will join Rolls-Royce Group, BNF Resources UK Ltd and Exelon Generation
Ltd as shareholders in Rolls-Royce SMR, taking a 10% share of the equity.

Mr Mansoor bin Ebrahim Al-Mahmoud, Chief Executive Officer of QIA commented:
"QIA is investing in the energy transition and funding the technologies that
enable low carbon electricity generation. We will continue to seek out
investments that align with our mandate to deliver long-term value for future
generations through responsible sustainable investments."

Warren East, CEO, Rolls-Royce Group, said: "I am tremendously pleased to
announce that we have further strengthened our relationship with Qatar,
through QIA's investment in the Rolls-Royce SMR business. We have successfully
raised the capital we need to establish Rolls-Royce SMR and it is encouraging
to confirm that the business is now set up to succeed."

Business and Energy Secretary Kwasi Kwarteng said: "This investment is a clear
vote of confidence in the UK's global leadership in nuclear innovation and
follows the £210 million of government investment in the development in Small
Modular Reactors.

"It represents a huge step forward in our plan to deploy more home-grown,
affordable clean energy - ensuring greater energy independence for the UK,
highly skilled jobs and bringing cheaper, cleaner electricity to people's
homes."

Minister for Investment, Lord Grimstone, said: "Although the COP26 Summit
ended last month, the work to reach Net Zero and build back greener from the
pandemic goes on.

"Investment will play an important role in this. By investing millions into
innovative green tech, like Small Modular Reactors, not only are we working
hard to end our contribution to climate change, but we are securing thousands
of highly-skilled jobs."

The Rolls-Royce SMR business is now fully funded, having secured £490 million
through commercial equity and UK Research and Innovation (UKRI) grant funding.
The development of SMRs is a core part of the UK Government's 10-point plan
for a green industrial revolution.

-end-

About QIA

Qatar Investment Authority ("QIA") is the sovereign wealth fund of the State
of Qatar. QIA was founded in 2005 to invest and manage the state reserve
funds. QIA is among the largest and most active sovereign wealth funds
globally. QIA invests across a wide range of asset classes and regions as well
as in partnership with leading institutions around the world to build a global
and diversified investment portfolio with a long-term perspective that can
deliver sustainable returns and contribute to the prosperity of the State of
Qatar.

Contact

Qatar Investment Authority

media@qia.qa (mailto:media@qia.qa)

About Rolls Royce SMR Ltd

Rolls-Royce SMR Ltd was established in 2021 to deliver clean affordable energy
for all. The business is capitalised by Rolls-Royce Group, BNF Resources UK
Limited, Exelon Generation Ltd and through UK Research and Innovation (UKRI)
grant funding. Rolls-Royce SMR will design and deliver a turn-key, low-cost
nuclear solution utilising factory built modularisation solutions.

Contact:

Rolls-Royce SMR Ltd

Alastair Evans

Director of Corporate and Government Affairs

0044 (0) 7553 207 591

0044 (0) 7595 003 158

alastair.evans@rolls-royce.com (mailto:alastair.evans@rolls-royce.com)

 

Rolls-Royce Group

Isabel Green

Head of Investor Relations

0044 (0) 7880160976

Isabel.Green@Rolls-Royce.com (mailto:Isabel.Green@Rolls-Royce.com)

 

Notes to Editors

Rolls-Royce has been a nuclear reactor plant designer since the start of the
UK nuclear submarine programme in the 1950s.

Rolls-Royce SMR will draw upon standard nuclear energy technology that has
been used in 400 reactors around the world.

A Rolls-Royce SMR power station will have the capacity to generate 470mw of
low carbon energy, equivalent to more than 150 onshore wind turbines. It will
provide consistent baseload generation for at least 60 years, helping to
support the roll out of renewable generation, helping to overcome
intermittency.

Rolls-Royce was advised on the equity raise process by Eversheds Sutherland
and HSBC

When fully operational the Rolls-Royce SMR business is forecast to create
40,000 regional UK jobs by 2050 and generate £52bn in economic benefit.

Rolls-Royce Group will ultimately own approximately 70% of Rolls-Royce SMR
business

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