Welsh Government will put forward "suitable sites" to Rolls Royce for consideration to host a factory to build mini-nuclear power stations.
The engineering giant has launched a competition between regions in England and Wales to be the location of the main factory to construct a planned fleet of small modular reactors (SMRs).
Wales is already in the running to host one or more of the SMRs - with Trawsfynydd in Snowdonia and Wylfa on Anglesey high on the list of potential sites.
The Welsh Government has confirmed it is encouraging Roll Royce to look to the country to help build the plants.
Rolls is leading the SMR consortium in the UK and says the manufacturing site could bring investment of £200m and 200 direct jobs. The consortium has been backed by £200m from the UK Government.
A Welsh Government spokesperson said: “Over the past four years, we have been in regular contact with Rolls Royce regarding their interest in sites in Wales and this constructive dialogue will continue.
“We look forward to a dialogue with the company about their requirements for a heavy pressure vessel factory and will encourage consideration of suitable sites in Wales.
“With respect to location for the deployment of a Rolls Royce SMR, Cwmni Egino, the Trawsfynydd site development company established by Welsh Government, will engage with a range of SMR technology vendors, including the consortium led by Rolls Royce, with the aim of selecting the optimal technology and investment package for the site that offers the best value in terms of jobs, R&D, manufacturing and supply chain opportunities for the region and Wales as a whole.”
Reactors will be built in factories around the UK and then assembled on site, reducing the risks and huge costs of construction of big nuclear power plants.
This main factory will build the heavy pressure vessels that are part of the reactors.
Rolls-Royce is said to be interested in the financial and non-financial support on offer and the training support available in the area.
Kwasi Kwarteng, UK Secretary of State for Business, Energy and Industrial Strategy, said: "Rolls Royce is looking for sites to host a major factory to build their planned fleet of Small Modular Reactors.
"These mini nuclear power plants are quicker to build, cost less and each one could power 1m homes
"We're backing the plan with £210m."
Andy Prendergast, GMB National Secretary, said: “This new fleet of small modular reactors is fantastic news for workers, energy users and the planet.
“Everyone in the energy business knows there can be no net zero without new nuclear.
“This is a massive step forward in cutting UK carbon.
"GMB members in the nuclear industry have been providing low carbon energy for more than sixty years.
“If politicians are serious about climate change - and a green economic recovery – we need to get spades in the ground for many more nuclear projects, both big and small, built right here in the UK.”
