The United Kingdom has unveiled a £16.7 billion investment in new nuclear energy projects, marking a major step in its transition from fossil fuels to cleaner energy sources.

Chancellor of the Exchequer Rachel Reeves confirmed the commitment on Tuesday, highlighting a £14.2 billion injection into the construction of the Sizewell C nuclear plant in Suffolk.

“The UK is back where it belongs, taking the lead in the technologies of tomorrow,” Reeves declared, naming Rolls-Royce as the preferred bidder to develop small modular reactors (SMRs), with the programme receiving £2.5 billion in taxpayer funding.

The government believes SMRs—compact, factory-built reactors—could revolutionise power generation by being faster and cheaper to deploy. The first SMR site is expected to be announced later this year by the state-owned Great British Nuclear agency.

According to officials, the SMR initiative could create up to 3,000 skilled jobs and eventually power the equivalent of three million homes.

Energy Secretary Ed Miliband said the new nuclear push was essential to Britain’s clean energy ambitions: “We’re ushering in a golden age of clean energy abundance.”

The move received support from trade unions, with the Treasury noting that Sizewell C alone would generate around 10,000 jobs, including 1,500 apprenticeships.

However, not everyone welcomed the announcement. A campaign group opposed to the Sizewell C project raised concerns over the final cost, which remains unclear.

Nuclear energy is central to the UK’s goal of decarbonising its electricity grid by 2030. The last nuclear plant completed in the country was Sizewell B in 1987. Meanwhile, Hinkley Point C in Somerset, currently under construction, is expected to supply energy to six million homes—but not before 2031.