Calls for the government to retain some kind of nuclear energy production at Dungeness have been given a boost by the Chancellor.

Nuclear energy is to be reclassified as “environmentally sustainable” to give it the same access to investment incentives as renewable sources of energy, the Chancellor has said.

In his Spring Budget, Jeremy Hunt said the government would launch a Great British Nuclear scheme to “bring down costs” and “provide opportunities” in the supply chain with a view to nuclear power providing 25% of the UK’s electricity generation by 2050.

MP Damian Collins, who represents Folkestone and Hythe hailed the announcement as a significant step forward as it could lead to new nuclear technology for Kent.

He has previously called for small modular reactors (SMRs) to be installed on the Marsh.

Mr Collins said: “The fact that the Chancellor directly referenced small modular reactors; the decision to support the development of that technology and to potentially be an investor in the delivery of that new technology is really important.”

Classifying nuclear as a renewable source of energy would be attractive to outside investors, he added.

“What the government is doing is sending a very strong signal to that market that it wants to invest itself.

"It sees it being a really important part of how we meet our energy needs in the future.

"That should encourage potentially other investors in the market as well.

“It is good news as it takes us another step towards realising the ambition to have small modular reactors at Dungeness and other parts of the country.”

It comes as EDF, which runs Dungeness B, revealed in 2021 it would move the power station into the defuelling phase with immediate effect following a range of technical challenges at the plant.

It had already been offline since 2018.

The defueling stage involves removing the fuel from the two reactors.

This process has taken place many times before, but usually they are replaced with more fuel. This time it will not be replaced.

This was seven years ahead of schedule, as the nuclear power point had been expected to be online until 2028.

It could take 10 years before the station is declared fuel free.

It will then move to the decommissioning stage, and then the deconstruction stage.

More than 700 people currently work at the station, and the majority of these jobs are secure for now, says EFD.

Neighbouring Dungeness A power station ceased generation at the end of 2006 after 40 years of supplying electricity to the national grid.

Defueling of both reactors was completed in September 2012. The site is now being decommissioned.

The campaign to retain nuclear production at Dungeness is being backed by the county council and Folkestone district council.

Both believe that it meets the criteria for a small modular reactor and have called on the government to include it in the possible options for a new facility.

In a joint statement, the two councils said: “Dungeness has been a nuclear site for 60 years.

"There is no reason why it can’t continue to be one and every reason that it should, given the national need.

"It has the grid connections, the water, the workforce, the space on essentially a brownfield site and a supportive local population - it is the ideal place to pilot the SMR concept quickly and should be placed on the approved site list with immediate effect.”

SMRs are a type of nuclear fission reactor used for generating power. They are smaller than conventional nuclear reactors.