Small modular reactors (SMRs) have long been expected to bring cheaper and more efficient nuclear energy. Its compact, standardized design was expected to usher in a new era in an industry historically plagued by cost overruns and safety concerns.
But as big tech companies like Google (GOOG) and Amazon (AMZN) turn to advanced technologies in hopes of powering their AI ambitions with lower carbon emissions, the lack of commercial SMRs being built. is the main reason why skeptics question its feasibility. Not yet in America.
Despite talk of simplifying the process, there are only three SMRs in operation around the world, two in Russia and one in China.
“No one knows how long it will take to build,” said David Schlissel, an analyst at the Institute for Energy Economics and Financial Analysis, a critic of SMRs. “No one knows how much it will cost to build. It could take 10 to 15 years to build, so we don’t know how effective it will be in combating climate change.”
The core module of the ACP100 multipurpose small modular pressurized water reactor (PWR), also known as Linlongwan, will be transferred to a ship in Dalian, Liaoning Province, China, on July 14, 2023. (Liu Xuan/VCG via Getty Images) · VCG via Getty Images
Nuclear power is receiving renewed interest as the world moves away from fossil fuels to reduce harmful emissions that cause climate change. While wind and solar power are widespread and low-cost energy options, nuclear power remains an attractive clean alternative. The main reason for this is that it can operate 24/7, regardless of the season, and has a small footprint.
SMR is the most promising. Unlike traditional nuclear power plants, which are costly and time-consuming, modular reactors are one-third the size and have an output capacity of less than 300 megawatts. The nuclear industry has touted the efficiency and cost savings of SMRs because they are manufactured in factories and assembled on site.
“It reduces the risks associated with the project,” said Jacopo Bongiorno, a professor of nuclear engineering at the Massachusetts Institute of Technology. “For investors, there is less uncertainty regarding project execution and the potential for a faster return on investment.”
But in many ways, the hurdles facing this new generation of reactors mirror the old ones. Designing an advanced nuclear reactor took longer than expected. These delays are adding to cost overruns.
Oregon-based NuScale (SMR) became the first company to receive approval from the Nuclear Regulatory Commission to build an SMR in 2022, but the company last year announced plans to deploy six reactors in Idaho. The plan was canceled. The announcement comes as the cost of the project, scheduled to be completed in 2030, has soared from $5 billion to $9 billion.
Bongiorno said the build was complicated by the array of technologies tested within each individual project. All SMRs use uranium as fuel, but its form and use within the reactor vary by company and its technology. That’s dramatically different from existing nuclear power plants, which use all uranium dioxide, he said.
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“Technology is evolving. We expect the performance of these reactors to be different. But the big question mark is… what will the reliability be? Given that we don’t have much experience… , how reliable is this technology?” Bongiorno said. “Just as importantly, if not more importantly, what will it cost?”
XEnergy CEO Clay Sell said demand had been part of the problem in the past.
Sell said that artificial intelligence has changed that calculation primarily because of the energy demands associated with powering the data centers that power the AI models. Goldman Sachs estimates that this advanced technology will contribute to a 160% increase in data center power demand by 2030.
Earlier this month, Amazon announced a $500 million investment in SMR development, including funding for X-energy. The funding will help X-energy complete the design of standard plants and build the first facility to produce the fuel used in those plants, Sell said, calling the investment a “game changer.” I called.
“A significant portion of the growth in electricity demand in the United States over the next 25 years will come from AI. That share could reach 10%, 20%,” Sell said.
Mike Laufer, CEO of Kairos Power, which has a purchase agreement with Google, said the company is still in the process of demonstrating its non-nuclear technology. “Cost certainty” depends on successful demonstrations and in-house manufacturing capabilities, he said.
“[Cost certainty] “It has been very elusive in this area,” he said.
Aerial photo of the construction site of Linglong-1 (ACP-100), the world’s first land-based commercial small modular reactor (SMR), located in Yangtze River Li Autonomous Prefecture, Hainan Province, China, on July 4, 2024. (Wang Jian/VCG via Getty Images) · VCG via Getty Images
There are challenges beyond cost, including a lengthy regulatory approval process and the disposal of all the nuclear waste.
For nuclear companies, keeping a small footprint means reducing waste, but a Stanford University study found that SMRs increase the amount of nuclear waste by “2 to 30 times.”
Schlissel argues that all the money spent on small nuclear reactors should go toward wind, solar and battery storage, which have been shown to reduce carbon emissions and be cheaper to produce.
Bongiorno countered that nuclear reactors have a long service life. The initial cost may be higher, but the reactor has a lifespan of 60 to 100 years, he said. Due to its small footprint, SMRs can also be built close to data centers, minimizing infrastructure costs, he added.
The Department of Energy says nuclear energy is essential to transitioning the country away from fossil fuels. The agency has set aside $900 million in funding for SMR development.
The Department of Energy estimates that the U.S. will need approximately 700 to 900 gigawatts of additional clean, stable power generation capacity to reach net-zero emissions by 2050, and nuclear energy is already the largest source of carbon-free electricity in the country. He added that it supplies almost half of the total.
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