Why SMRs take longer than expected to install

As we enter a new era of nuclear power, with public support stronger than it has been in decades, energy companies and startups around the world are looking for innovative ways to deploy nuclear power more quickly. While conventional reactors are prohibitively expensive for most companies, as well as requiring decades to develop, there has been great optimism regarding the use of small modular reactors (SMRs). More smaller companies, as well as governments, are investing in SMRs to increase nuclear power capacity, promising companies access to clean nuclear power without having to wait decades to connect. However, most SMR developers face challenges that have caused delays in the launch of new nuclear projects, with several issues remaining to be overcome before we see widespread use of SMR.

SMRs are advanced nuclear reactors that have a power capacity up to 300 MW(s) per unitwhich is equivalent to about one third of the generating capacity of conventional nuclear reactors. SMRs, which can produce a large amount of low-carbon electricity, are much smaller than conventional and modular reactors, allowing them to be assembled from the factory and transported to site for installation.

Because SMRs are much smaller than conventional reactors, they can be used on sites that are not suitable for traditional nuclear power plants. The fact that they can be manufactured at a dedicated facility before being sent to the site means they are much cheaper and quicker to build. Their modular structure means that a company can invest in a single SMR and then add additional 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 because their design is usually 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, increasing safety margins. They require less fuel to run, and SMR-based plants only need to be fueled every three to seven years, compared to every one to two years in conventional plants. All of these benefits have made them extremely attractive to energy companies and startups looking to grow their nuclear power portfolio, as well as companies looking to power operations using clean energy sources.

More energy companies and startups like Terrapower – founded by Bill Gates, develops SMR technology. Founders of Terrapower decided the private sector needed to step up to develop advanced nuclear power to meet growing electricity needs, mitigate climate change and lift billions out of poverty. Several SMR projects are also supported by government funding. For example, in the US, the Department of Energy announced $900 million in funding 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 developing own SMR strategiesto power operations with clean energy.

Although there is huge optimism regarding the implementation of SMR technology, many of the companies developing the equipment have faced a multitude of challenges, resulting in delays and massive financial burdens. Currently, only three SMRs are operational in the world, in China and Russia, as well as one test reactor in Japan. Most nuclear experts believe that SMRs will not reach the commercial phase in the US until the 2030s.

NuScale canceled plans to launch an SMR site in Idaho in 2023 after the cost of the project increased from $5 billion to $9 billion due to inflation and high interest rates. This is a common problem as companies need to predict the costs of a high-end project. Once an SMR site is launched and companies can establish tried and tested implementation methods, a second site is expected to be cheaper and faster to develop. A trend that will continue as companies gain more experience. Eric Carr, president of nuclear operations at Dominion Energy, explicitly“No one wants to be first, but someone has to be.” Carr added: “Once it’s up and running, it will be an excellent and reliable source of energy for the entire nation’s grid.”

Another problem is access to uranium. Russia is currently the only commercial source of low-enriched uranium (HALEU), which companies need to fuel their reactors. In late 2022, Terrapower announced it would delay the launch of its first SMR site in Wyoming due to a lack of fuel availability. However, the US is developing its domestic production capabilities. The Biden administration is expected to awards over $2 billion in the coming months to uranium enrichment companies to help start the supply chain. Meanwhile, Terrapower announced this summer that it finally is begins construction on its SMR site in Wyoming and is working with other companies to develop alternative supplies of HALEU.

By Felicity Bradstock for Oilprice.com

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