Why SMRs are taking longer than expected to be implemented

As we enter a new era of nuclear power, with public support stronger than in decades, energy companies and startups around the world are looking for innovative ways to accelerate the deployment of nuclear power. While conventional reactors are prohibitively expensive for most companies to build and take decades to develop, there is great optimism around the use of small modular reactors (SMRs). Several smaller companies, as well as governments, are investing in SMRs to increase the capacity of nuclear power plants, promising companies access to clean nuclear energy without having to wait decades for a connection. However, most SMR developers face challenges that have caused delays in the launch of new nuclear projects, and several issues remain to be resolved before we see widespread use of SMRs.

SMRs are advanced nuclear reactors that have power up to 300 MW(e) per unitequivalent to about one-third of the generating capacity of conventional nuclear reactors. SMRs, which can produce large amounts of low-carbon electricity, are much smaller than conventional reactors and modular, allowing them to be assembled in a factory and transported to the site.

Because SMRs are much smaller than conventional reactors, they can be used in locations that are not suitable for traditional nuclear power plants. The fact that they can be manufactured in a dedicated facility before being shipped to the site means they are much cheaper and quicker to build. Their modular structure means that a company can invest in one SMR and then add more SMRs later to meet any increase in energy demand. SMRs, especially microreactors, can also be extremely useful in rural areas that are difficult to connect to the main grid.

SMRs are also extremely safe, as their design is typically simpler than conventional reactors. They operate at low power and pressure, meaning no human intervention or external power or force is required to shut down the systems, which increases safety margins. They require less fuel to power them, and SMR-based plants only need to be refilled every three to seven years, compared to every one to two years for conventional plants. All of these benefits have made them incredibly attractive to energy companies and startups looking to expand their nuclear portfolios, as well as companies looking to power operations using clean energy sources.

Several energy companies and startups such as Terrapower – Founded by Bill Gates, develops SMR technology. Founders of Terrapower decided the private sector has had to step up to develop advanced nuclear energy to meet growing electricity demand, mitigate climate change, and lift billions out of poverty. Several SMR projects are also supported by government funding. For example, in the U.S., the Department of Energy announced $900 million in financing to accelerate the deployment of next-generation Light-Water SMRs. In addition, many companies, such as Microsoft, have signed purchase agreements with energy companies to use SMRs or are in the process of doing so developing your own SMR strategiesto power your activities with clean energy.

While there is great optimism surrounding the deployment of SMR technology, many companies developing the equipment have faced a host of challenges, leading to delays and huge financial burdens. There are currently only three SMRs in operation in the world, in China and Russia, as well as a test reactor in Japan. Most nuclear experts believe that SMRs will not reach commercial operation in the United States until the 2030s.

NumScale scale plans to launch SMR website canceled in Idaho in 2023 after the project cost ballooned from $5 billion to $9 billion due to inflation and high interest rates. That’s a common concern as companies try to predict the cost of a first-of-its-kind project. Once one SMR site is up and running and companies have established proven implementation methods, a second site is expected to be cheaper and quicker to develop. That trend will continue as companies gain more experience. Eric Carr, president of nuclear operations at Dominion Energy, explained“Nobody really wants to be first, but somebody has to be first.” Carr added: “Once it’s up and running, it’s going to be a great, reliable source of power for the entire national grid.”

Another problem is access to uranium. Russia is currently the only commercial source of high-carbon, low-enriched uranium (HALEU), which companies need to power their reactors. In late 2022, Terrapower announced it would delay the start-up of its first SMR plant in Wyoming due to a lack of fuel availability. However, the United States is developing its domestic production capacityThe Biden administration is expected to a prize of over $2 billion in the coming months to uranium enrichment companies to help get the supply chain up and running. Meanwhile, Terrapower announced this summer that it would finally Construction begins on Wyoming SMR and is working with other companies to develop alternative sources of HALEU supply.

By Felicity Bradstock for Oilprice.com

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