A Manchester-based company spun out from BAE Systems has secured £15 million in initial funding to develop a nuclear reactor employing gas turbine technology, a move aimed at accelerating deployment and reducing costs associated with nuclear power generation.

The funding round, led by venture capital firm IQ Capital, marks the first investment since Nuclear Turbines was established as an independent entity last October. The capital will support detailed design work on the company’s novel approach, which replaces traditional steam turbine systems with high-temperature gas turbine technology commonly used in jet engines and gas-fired power plants.

Nuclear Turbines envisions its reactors powering critical infrastructure, including industrial facilities, data centers, and manufacturing plants. According to co-founder Jeremy Owston, a former BAE principal engineer, the company reversed the conventional approach by starting with the most cost-effective power generation method and designing the reactor around it. Owston emphasized that, historically, reactors were designed first, with power generation systems adapted subsequently.

Together with co-founder Professor Tim Abram, Owston asserted that their technology can produce electricity at roughly one-fifth the cost of conventional steam-powered nuclear reactors. This cost reduction is attributed primarily to a significantly smaller physical footprint, which they say lowers construction expenses.

The development aligns with the UK government’s broader strategy to expand nuclear energy capacity. Recently, Rolls-Royce was selected to build the nation’s first small modular reactors (SMRs), with the initial units expected to be operational by 2034. These SMRs are viewed as a quicker and more cost-effective solution to increase baseload nuclear power, complementing intermittent renewable sources as the energy grid evolves.

Nuclear Turbines’ innovation represents a departure from traditional nuclear power generation methods, potentially offering a scalable and economically attractive alternative to standard steam turbine-based plants. The success of this approach will be closely watched as the UK works to meet its energy and climate goals.