The buzz around small modular nuclear reactors (SMRs) is hard to ignore. These compact power plants are set to begin operation in the UK by the mid-2030s and have attracted interest from both the public sector and major companies like Amazon and Microsoft. However, the initial excitement surrounding SMRs seems to be waning.
One of the appealing aspects of SMRs is their size and cost. These reactors, even the largest ones generating up to 350 megawatts, are significantly smaller than the UK’s Hinkley Point C, making them cheaper to build and faster to deploy. This makes nuclear energy a more attractive option in the transition to a cleaner energy system.
According to the International Energy Agency, if everything goes right—supportive government policies, effective industry collaboration, and reliable technology—there could be around 1,000 SMRs worldwide by 2050, producing a total capacity of 120 gigawatts. This would represent a small portion of the nuclear capacity promised by various countries for that year. In the UK, for instance, Rolls-Royce recently received approval to establish its first SMRs off the coast of Wales.
Despite this potential, many SMR companies in the U.S. have faced significant setbacks recently. Companies like NuScale have seen their market value drop by over half in just six months. Oklo and Nano Nuclear Energy have also experienced similar declines.
As a young technology, SMRs are still proving themselves. While they may require lower initial investments, their cost per unit of capacity tends to be higher compared to traditional nuclear plants. Additionally, the lack of a standardized design is a challenge, with nearly 130 different SMR technologies reported globally.
SMRs also share some common issues with larger reactors. A significant portion of the world’s uranium supply is controlled by just a few countries, and the enrichment process is dominated by Russia and China. Furthermore, studies suggest that SMRs could generate more nuclear waste than conventional reactors, potentially producing between two to thirty times more waste due to their unique fuels and cooling methods.
Nevertheless, SMRs serve as one potential solution to the rising demand for electricity and the need for decarbonization. However, with many options in development, clients are exploring a variety of technologies. The Tennessee Valley Authority, for example, is working with multiple SMR developers.
It’s also important to note that projections for future energy demand could change. Innovations, like Google’s efficient processors, may alter the expected growth of energy needs, highlighting how quickly industries can shift due to new technologies.