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Shares of Rolls-Royce Holdings PLC reached a new record high as the company confirmed its progress in seeking US regulatory approval for its small modular reactor (SMR) business. This milestone coincides with the recent announcement of a US-UK nuclear pact designed to streamline the regulatory process on both sides of the Atlantic. The agreement aims to fast-track nuclear reactor design checks by acknowledging each other’s safety assessments, significantly reducing redundancy and accelerating approvals for advanced designs, such as those developed by Rolls-Royce SMR.

The UK and US governments will collaborate on the licensing of new projects, a move that is expected to expedite the approval of nuclear project sites. As energy demands surge, particularly from burgeoning data centers, both nations are eager to explore alternative energy sources that are less vulnerable to environmental factors. Rolls-Royce CEO Tufan Erginbilgic expressed appreciation for the governments’ commitment to hasten the deployment of new nuclear technologies, highlighting the company’s unique full lifecycle capabilities and established supply chain in the nuclear sector.

Earlier this year, Rolls-Royce SMR was named the UK government’s preferred bidder to develop the first small modular nuclear reactors in the country. A site is anticipated to be allocated by Great British Energy for construction later this year, with the aim of connecting the reactor to the grid by the mid-2030s. Erginbilgic welcomed the government initiatives to accelerate the licensing process and related planning reforms, which he believes will foster job creation and investment opportunities in the US market.

As a testament to the positive outlook surrounding these developments, Rolls-Royce shares climbed 1.8% to 1,150p by midday on Monday, achieving a new high of 1,152p and reflecting a remarkable increase of over 132% in the past year.