Despite the setback of a recent cancellation in the US nuclear industry, optimism remains high for the advancement of small reactors, as proponents anticipate new projects to come online by the decade’s end.
Last year, NuScale, a US energy company, announced the termination of a small modular reactor (SMR) project in Idaho, the only SMR design awaiting approval from the US Nuclear Regulatory Commission. The project faced significant cost escalation, with estimates soaring from $5.3 billion to $9.3 billion.
Some critics, like MV Ramana from the University of British Columbia, have speculated that the failure of NuScale’s project signals the demise of small modular nuclear reactors. However, analysts like Mason Lester from S&P Global Commodity Insights see a brighter outlook for the US nuclear sector, citing recent positive developments.
One such development is GE Hitachi’s BWRX-300 design, set to begin power production in Ontario, Canada, by 2029 pending regulatory approval. The Tennessee Valley Authority has also invested in this design. Despite the setback with NuScale, John Kotek of the Nuclear Energy Institute views it as an isolated incident rather than a systemic issue, emphasizing the importance of improving risk management for future projects.
While escalating costs are partly attributed to factors affecting all infrastructure projects, such as increased steel and commodity prices, Marcia Burkey, CFO at TerraPower, believes innovation can mitigate these challenges. TerraPower, backed by investors like Bill Gates, focuses on advanced technologies like “molten chloride” to enhance reactor efficiency.
Efforts to standardize designs across multiple projects aim to reduce costs, with Ultra Safe Nuclear Corporation planning to establish a Micro-Modular Reactor assembly plant in Alabama by 2027. Despite operational small reactors in China and Russia, the US leads Europe in SMR development, according to Sylvain Cognet-Dauphin of S&P Global Insights.
Legislative moves, such as a bill passed by the US House of Representatives to expedite advanced nuclear licensing, reflect growing recognition of the need for clean energy solutions. This sentiment is echoed by industry players like Google, Microsoft, and Nucor, who announced a partnership to promote clean energy, including advanced nuclear power.
As the industry strives to meet rising energy demands, partnerships between energy utilities like PacifiCorp and innovative nuclear companies underscore a growing interest in nuclear energy. However, convincing stakeholders and proving the viability of these technologies remain crucial steps in realizing their potential.