Engineering company Rolls-Royce is considering the sale of its small modular reactor subsidiary to inject new funding into the company’s overall business plans, the Sunday Telegraph first reported Aug. 3.

The company is looking to raise hundreds of millions, with a current valuation of £1.6 billion ($2 billion), as it sets its sights on being the first to deploy SMRs in the United Kingdom. Rolls-Royce recently cleared step two of the U.K.’s generic design assessment (GDA)—a competition launched in 2023 to bring SMRs on line in the 2030s.

The small modular reactor design from Rolls-Royce has cleared step two of the United Kingdom’s generic design assessment (GDA) and is moving to the third and final step.

The company announced its progress and lauded “Rolls-Royce SMR’s position ahead of any other SMR in Europe” in a July 30 press release. Rolls-Royce SMR touts its ability to deliver new nuclear power based on proven technology, providing a “factory-built” power station to provide enough energy for a million homes for a 60-year stretch.

The U.K. government has chosen six companies to participate in the next stage of its small modular reactor competition: EDF, GE Hitachi Nuclear Energy, Holtec Britain Limited, NuScale Power, Rolls-Royce SMR (the only real home team), and Westinghouse Electric Company UK Limited. According to the government’s October 2 announcement, the advanced technologies offered by these firms are “the most able to deliver operational SMRs by the mid-2030s.”

Small modular reactor developers Holtec International and GE Hitachi Nuclear Energy (GEH) are both looking to the United Kingdom as a prime location for deployment of their units—the SMR-160 and BWRX-300, respectively.

On December 19, Holtec Britain announced that it is poised to enter the United Kingdom’s generic design assessment (GDA) process for the SMR-160 early in 2023, enabling the start of construction of the first U.K. unit as soon as 2028. (The GDA, developed by the Office for Nuclear Regulation and the Environment Agency, gauges the safety, security, and environmental protection aspects of a nuclear plant design. Successfully completing the assessment culminates in a design acceptance confirmation from ONR and a statement of design acceptability from the Environment Agency.)

The United Kingdom’s Department of Business, Energy and Industrial Strategy (BEIS) has asked regulators—including the U.K. Office for Nuclear Regulation (ONR), the Environment Agency, and Natural Resources Wales—to begin a generic design assessment (GDA) of Rolls-Royce SMR’s 470-MWe small modular reactor design.