Nuclear Turbines raises £15M for compact reactors aiming to undercut fossil fuels
Manchester startup adapts jet engine tech to slash nuclear energy costs in industrial settings.
1Radical alternative to conventional nuclear
Spun out from BAE Systems, Nuclear Turbines proposes compact reactors that eliminate steam turbine infrastructure through adapted jet engine technology. Their £15M funding round, led by IQ Capital, will finance test rig construction and fuel element production. The Manchester-based startup's approach enables 'behind-the-meter' deployment at industrial sites, potentially revolutionizing energy access for data centers and factories. This positions them uniquely in the UK's small modular reactor competition.
2Technological pivot: Eliminating steam systems
Co-founder Jeremy Owston explains their inverted design philosophy: 'We started with the cheapest power generation method first, then engineered the reactor around it.' Their high-temperature turbine technology, borrowed from aviation and gas power sectors, promises electricity at one-fifth current nuclear costs. The funding will validate these ambitious claims through large-scale testing. This comes as European nuclear startups attract record private investments amid energy security concerns.
3Strategic leadership and backers
The appointment of Centrica's former Strategy Director Lauren Dickerson as Chief Commercial Officer signals early customer focus. Investors including Rhapsody Venture Partners and Zero Carbon Capital join lead backer IQ Capital. Emerging from BAE Systems' Launchpad program, the startup blends defense and nuclear engineering expertise. Their academic partnership with University of Manchester provides research credibility. This multifaceted support structure strengthens their position in the advanced nuclear sector.
4Addressing UK's energy cost crisis
With British businesses paying 50% higher electricity rates than EU counterparts (Deloitte data), Nuclear Turbines targets industrial users burdened by energy expenses. Traditional nuclear's decade-long construction timelines and billion-pound budgets make their compact solution particularly appealing for energy-intensive industries. By enabling direct on-site generation, they could reduce grid dependence for manufacturers. The technology arrives as data center operators actively seek reliable, clean power alternatives.
5Regulatory tailwinds and supply chain
The startup aligns with UK policy shifts including the 2025 Nuclear Regulatory Review and Advanced Nuclear Framework. Britain's new uranium enrichment facility for high-assay fuel addresses a critical supply chain gap that previously forced nuclear startups abroad. BAE Systems' defense background may facilitate regulatory navigation. Successful testing could establish important benchmarks for the emerging small modular reactor industry, influencing both policy and investment decisions.
6Ambitious cost projections
Nuclear Turbines' fossil fuel-undercutting price claims remain unproven, though IQ Capital's Jordan Billiald calls it 'the first SMR design solving both economics and sustainability.' Historical nuclear cost overruns warrant skepticism, but jet turbine technology's proven efficiency provides credible foundation. The coming test results will determine whether these projections hold, potentially reshaping nuclear energy's financial viability narrative. This proof-of-concept phase represents the startup's most critical milestone.
7British innovation in global energy transition
Positioned at the intersection of reindustrialization and climate goals, Nuclear Turbines offers what co-founder Owston terms 'the only technology delivering clean and cheap energy simultaneously.' Their defense-derived solution could serve energy-intensive sectors worldwide, from UK manufacturers to global data center operators. Manchester's engineering ecosystem supports ongoing R&D, while BAE Systems' infrastructure enables international scaling potential. The model exemplifies UK's strategy to lead in nuclear innovation.
8Potential game-changer for nuclear's future
If successful, Nuclear Turbines could achieve the dual revolution nuclear energy needs: cost competitiveness and decarbonization. By overcoming traditional nuclear's financial and temporal barriers, their model might attract industries previously dependent on fossil fuels. The test outcomes will influence not just the startup's trajectory but the broader commercial viability of small modular reactors. For the UK, this represents a tangible step toward becoming a nuclear technology exporter while addressing domestic energy challenges.