(Reuters) -Rolls-Royce Holdings on Saturday denied a report it was exploring an initial public offering for its small nuclear reactor unit.

The Financial Times, citing people familiar with the situation, reported on Saturday the company was considering an IPO as well as other funding options. It said talks with investment houses and banks were at an early stage.

"Rolls-Royce SMR is not planning for, or in the process of launching, an initial public offering," a spokesperson for the unit said in an emailed statement to Reuters.

In June, the Rolls-Royce SMR unit was selected to build Britain's first Small Modular Reactors as part of its plan to speed up the decarbonisation of the power network from the mid-2030s. The unit, majority-owned by the British engineering firm, plans to build three reactors. 

The British government pledged 2.5 billion pounds ($3.4 billion) for the SMR programme over the next four years, aiming to launch one of Europe's first small-scale nuclear industries.

Countries including the United States, Canada, Romania and the Czech Republic are also pursuing SMRs, which could open a large global market if the British project succeeds. 

($1 = 0.7402 pounds)