Centrica and US-based X-Energy have announced a landmark agreement to develop the United Kingdom’s (UK) first advanced modular reactors, aiming to help decarbonise the energy system and enhance energy security. The companies signed a Memorandum of Understanding to collaborate on deploying X-Energy’s Xe-100 advanced modular reactor technology, with the intention of establishing a fleet of these reactors at existing and potential new sites across the UK.

According to Centrica, the agreement represents the first stage in a new trans-Atlantic alliance which could ultimately mobilise at least £40 billion in economic value to bring clean, safe and affordable power to thousands of homes and industries across the country and substantive work for the domestic and global supply chain.

The deal forms part of a package of trade and investment agreements struck between the UK and the US around President Trump’s UK state visit last week. Commenting on the deal, United States Secretary of Energy Chris Wright said, “With President Trump’s leadership, the United States is ushering in a true nuclear renaissance, harnessing the power of commercial nuclear to meet rising energy demand and fuel the AI revolution. Meeting this demand will require strong partnerships with our allies around the world and robust collaboration with private sector innovators. Today’s commercial deals set up a framework to unleash commercial access in both the U.S. and UK, enhancing global energy security, strengthening U.S. energy dominance, and securing nuclear supply chains across the Atlantic.”

Under the agreement, Centrica and X-Energy will work together to assess the commercial viability and optimal locations for Xe-100 reactors, with a particular focus on replacing retiring fossil-fuel assets and supporting industrial decarbonisation. The Xe-100 reactor, which generates up to 80 megawatts of electricity or 200 megawatts of thermal energy, is designed to be both flexible and scalable, making it suitable for integration into the UK’s evolving energy landscape.

Centrica Group Chief Executive Chris O’Shea said, “We are delighted to be working with X-Energy to explore the deployment of advanced modular reactors in the UK. New nuclear will be an important part of a future, reliable energy system and projects like this can help ensure the UK has the low-carbon power and heat needed to support jobs and decarbonise industry.” J. Clay Sell, CEO of X-Energy, echoed this sentiment, stating, “The UK is a global leader in nuclear innovation, and our partnership with Centrica aims to advance the deployment of advanced modular reactors that can play a critical role in delivering clean, affordable, and reliable energy.”

The announcement follows a growing push for new nuclear capacity in the UK, as the government targets 24 gigawatts of nuclear power by 2050. Centrica and X-Energy believe that advanced modular reactors could accelerate the transition by offering faster deployment and lower costs than conventional nuclear plants.

If successful, the project could create significant opportunities for UK supply chains and high-skilled jobs while supporting the government’s ambitions for net zero by 2050. Both companies are now beginning detailed site evaluations and stakeholder consultations, with a view to making final investment decisions in due course.

X-Energy has strong South African origins and is built on technology pioneered in South Africa. Dr Eben Mulder, X-Energy’s Chief Nuclear Officer, is originally from South Africa and brings decades of nuclear engineering experience from his time at Eskom and South African nuclear initiatives. Mulder’s expertise is central to X-Energy’s leadership team, highlighting the global reach of South African talent in next-generation nuclear development and strengthening the international collaboration at the heart of this UK project.