US ambassador backs major nuclear plans for Wylfa

When Wylfa closed, it was the UK's oldest operating nuclear power station.

The US ambassador to the UK has urged the UK government to commit to a large-scale nuclear power station at Wylfa on Anglesey.

Warren Stephens wrote in the Daily Telegraph that the project would create thousands of jobs, generate affordable power and that private investors were prepared to fund the bulk of the scheme.

It is understood there is serious discussion taking place between UK government departments about the best option for Wylfa.

Ministers are expected to deliver a decision soon on whether to locate a smaller-scale Small Modular Reactor (SMR) at Wylfa or Oldbury in South Gloucestershire.

Any decision on a larger-scale plant is likely to have value for taxpayer money at its centre

There is speculation that an announcement on where to locate the SMRs could be made in the build-up to, or as part of, the chancellor's Budget on 26 November.

Any announcement made by a Labour chancellor, ahead of a Welsh Parliament election next year and Welsh Labour fighting to stay in power in Cardiff Bay, would be eagerly anticipated and analysed.

Stephens, writing in the Daily Telegraph, praised UK and US partnership on SMRs, adding that "the UK has an immediate opportunity to capitalise on this momentum by designating the Wylfa site in north Wales for a gigawatt-scale nuclear project.

"Such a project would create thousands of jobs, provide affordable baseload power, and reduce reliance on weather-dependent or geopolitically vulnerable energy sources.

"Importantly, private investors are prepared to fund the majority of the project, minimising the need for taxpayer contributions."

It is a significant intervention by arguably the most senior US diplomat in Europe, as the UK and US look to boost economic ties.

Businessman Warren Stephens was nominated by President Donald Trump to serve as America's ambassador to the United Kingdom

In September, the two countries agreed a nuclear partnership potentially worth around £76bn.

A partial trade deal to reduce import taxes for some British goods entering the USA was agreed in May.

A spokesperson for the Department for Energy Security and Net Zero said: "We welcome the UK-US nuclear partnership signed as part of President Trump's historic state visit – highlighting the vital role US companies play in the UK's nuclear sector.

"We are launching a golden age of nuclear because by taking back control of our energy we will protect family finances, boost energy security and create thousands of jobs."

The Welsh government said: "Nuclear energy is part of our plan to move away from fossil fuels, using both large-scale and small modular reactors.

"Wylfa is particularly well-placed to attract investment in new nuclear plants because of its nuclear legacy and highly skilled local workforce.

"We continue to work with the UK government to ensure Wales' potential in this sector is fully realised."

Gigawatt plants are large enough to power around three millions homes, but are more expensive and time-consuming to build.

SMRs are quicker and cheaper to install and can power just under a million homes.

They are manufactured in a factory in modules before being assembled on-site.

A nuclear industry source said that building a large-scale plant on Anglesey would represent "generational transformational change".

The source said that "the ideal scenario" would be a gigawatt plant at Wylfa and SMRs at Oldbury.

The source added: "It would not be the end of the world if the government chose to put an SMR at Wylfa, but it could snooker the site in the longer term.

"From a project point of view it might be difficult to put an SMR at Wylfa and then a gigawatt plant later.

The UK government announced a £2.5bn investment in SMRs and partnership with Rolls Royce to build them in June this year.

The previous UK government under the Conservatives designated Wylfa as the preferred location for a new large-scale nuclear power plant in May 2024, having bought the site from its previous developers.

Labour announced a review of the UK's nuclear plans within weeks of winning the general election in July of the same year, but then in June 2025 confirmed a £14.2bn investment into a new large-scale plant at Sizewell in Suffolk.

Chancellor Rachel Reeves said the new plant would power six million homes, employ 10,000 people during construction, and support thousands more jobs across the UK.

Nuclear generation at Wylfa ended in 2015 as the site's final reactor was shut down.

Previous £20bn plans for a new nuclear power station were officially dropped in 2021 after developers failed to reach a funding agreement with the UK government.

Reports in the summer suggested that a US company, Westinghouse, had presented plans to the UK government to build a new gigawatt station at Wylfa.