British aerospace giant Rolls-Royce is set to develop small nuclear reactors that could provide power on the Moon.

The renowned luxury auto-maker was awarded a £2.9-million (US$3.5-million) contract for the project which would be ready by 2029.

“Scientists and engineers at Rolls-Royce are working on the micro-reactor program to develop technology that will provide power needed for humans to live and work on the Moon,” the aerospace company added in a statement.

The company is hopeful that its first car-size module would be ready to be sent to the Moon by 2029.

The development comes as NASA plans to send humans to the Moon in 2025. It would be the first visit since the historic Apollo missions ended in 1972.

“Nuclear power has the potential to dramatically increase the duration of future lunar missions and their scientific value,” Rolls said.

The group, best known for its engines powering Airbus and Boeing aircraft, will work alongside UK universities including Oxford on the space project.

Aside from powering a Moon base, Rolls-Royce also sees the technology as having potential terrestrial applications.

“The new tranche of funding from the UK Space Agency means so much for the Rolls-Royce Micro-Reactor Programme,” said Abi Clayton, Director of Future Programmes for Rolls-Royce. “This funding will bring us further down the road in making the Micro-Reactor a reality, with the technology bringing immense benefits for both space and Earth. The technology will deliver the capability to support commercial and defense use cases alongside providing a solution to decarbonize industry and provide clean, safe and reliable energy.”