Engineering company Rolls-Royce is considering the sale of its small modular reactor subsidiary to inject new funding into the company’s overall business plans, the Sunday Telegraph first reported Aug. 3.

The company is looking to raise hundreds of millions, with a current valuation of £1.6 billion ($2 billion), as it sets its sights on being the first to deploy SMRs in the United Kingdom. Rolls-Royce recently cleared step two of the U.K.’s generic design assessment (GDA)—a competition launched in 2023 to bring SMRs on line in the 2030s.

The small modular reactor design from Rolls-Royce has cleared step two of the United Kingdom’s generic design assessment (GDA) and is moving to the third and final step.

The company announced its progress and lauded “Rolls-Royce SMR’s position ahead of any other SMR in Europe” in a July 30 press release. Rolls-Royce SMR touts its ability to deliver new nuclear power based on proven technology, providing a “factory-built” power station to provide enough energy for a million homes for a 60-year stretch.

The United Kingdom’s nuclear regulators—the Office for Nuclear Regulation (ONR), the Environment Agency, and Natural Resources Wales (NRW)—have announced the completion of step one of their generic design assessment (GDA) for Rolls-Royce SMR’s 470-MWe small modular reactor design and the start of step two, which is expected to last 16 months.