Nuclear power is changing – and can lead the way in decarbonization
A new, disruptive generation of nuclear reactors is coming. Small reactors will be more compact and less complex than the larger light water reactors (LWR) in service today. They will also be assembled in a modular way, meaning they could be mostly built in a controlled factory setting and then installed module-by-module at the location where they will be deployed. Small modular reactors or SMRs, as they are known collectively, are well-suited to heavy industry and countries with less experience with nuclear power.
The current development of SMRs can be compared to the space race of the 1950s and 60s, when significant advancements in technology and engineering fueled global competition between pioneers who had ambitions to lead the development of first-of-a-kind (FOAK) technology in uncharted territory. Currently, around 1,800 SMR projects worldwide are in the discussion phase for potential construction, and this figure is growing. Companies such as Rolls Royce, General Electric, Westinghouse, and EDF are building on their extensive reactor design experience to develop compact light water reactors based on mature reactor technology. Meanwhile, emerging advanced reactor (AR) companies are approaching reactor design and the associated nuclear fuel with fresh perspectives that include inherent safety features and extended use cases. Both the established players in the nuclear sector and companies that are new to the market share a common emphasis on research and innovation. Yet despite interesting ideas and approaches being put forward multilaterally, tangible developments at scale are yet to materialize, leaving observers eagerly anticipating which vendor and technology will rise to prominence in this SMR race.
Electric utilities are under pressure to transition from gas and coal to decarbonize their power generation portfolio while expanding their generation capacity to meet commercial and industrial demand for clean power. SMRs can help utilities decarbonize and can easily be integrated into existing nuclear sites or re-power coal and gas facilities with existing infrastructure and strong grid connections. A key benefit for utilities is that SMRs allow for the upgrading of existing coal-fired power generation facilities by replacing the steam source while preserving the existing power conversion system. Utility companies already have considerable operating experience for the large power generation assets, which may include nuclear power. This operating experience reduces the barrier to market entry and puts them in a good position to offer assistance and collaboration to new entrants in the nuclear power sector. Additionally, the cost and construction of SMRs is less risky compared to large nuclear reactors while their high and firm power density makes them a valuable addition to a utility portfolio. While electric utilities are the obvious choice for the deployment of new nuclear, SMRs have some new and unique advantages that are disrupting this paradigm and expanding the use of nuclear beyond utilities. The disruptions caused by SMRs need to be accepted by the boardroom and the broader public. SMRs are scalable and use advanced technologies that provide both process heat and electricity. SMRs not only have smaller power density compared to large nuclear reactors, they also have smaller footprints. Their smaller size means that SMRs can be sited close to demand, whether it’s industrial sites or cities that require electricity. Siting closer to demand and the reducing power outputs also greatly simplifies the connections to the grid, which can add considerable time and cost for large nuclear. In short, SMRs are a disruptive technology that has broadened both the use cases and customer base for nuclear power. Heavy industries, such as mining, are also considering SMRs as a way to transition away from carbon-intensive power sources, such as diesel generators at large remote mines. Other power-hungry industries such as petrochemical facilities and steel production, can also be decarbonized using SMRs. Advanced high temperature reactors can provide both process steam, critical for many industrial processes, as well as electricity, which makes them ideal as a platform to decarbonize.
SMRs have also drawn considerable interest from the technology and commercial sectors, as they strive to achieve net zero and reduce secondary emissions because of their large electrical energy demands, for example to power data centers. SMRs also offer an alternative and reliable way to generate power. This includes the electrification of emerging economies that largely rely on fossil fuels, mostly older oil-fired stations or distributed diesel or gas generator sets. Inherently safe advanced reactors could allow for the broad-scale deployment of nuclear energy in emerging economies and remote communities while maintaining nuclear safety and assurance. Micro-modular reactors – small SMRs up to 15 MWe – can power remote communities, light industry, and markets that are underserved with reliable and consistent electric power. Their simplified designs drive both installation and operating costs making them attractive to emerging economies.
