Small modular nuclear reactors (SMRs) are generating a lot of excitement as a promising new technology, with hopes of being operational in the UK by the mid-2030s. These smaller reactors have drawn interest from both governments and major corporations like Amazon and Microsoft because they offer several advantages over traditional, larger nuclear plants.
One of the major selling points for SMRs is their size. Even the largest designs produce a maximum of 350 megawatts, making them significantly smaller and cheaper to build than larger facilities, such as the Hinkley Point C plant in the UK. This smaller size means they require lower upfront investments and shorter construction times, making nuclear energy a more attractive option for a cleaner energy future.
If everything goes well—government policies are supportive, the industry delivers, and the technology proves reliable—the International Energy Agency (IEA) predicts we could see around 1,000 SMRs worldwide by 2050, with a total capacity of 120 gigawatts. This would be a fraction of the total nuclear capacity promised by 30 countries. Recently, in the UK, the engineering firm Rolls-Royce received approval to set up its first SMRs off the coast of Wales, marking a step forward in this technology.
However, SMR developers, particularly in the US, have faced significant challenges recently. Companies like NuScale have seen their market value drop by more than half in just six months. Similarly, Oklo and Nano Nuclear Energy have also experienced significant losses in value.
As these technologies evolve, there’s still much to prove. Although SMRs require less investment initially, their cost per capacity unit is higher compared to larger conventional reactors. Moreover, there isn’t yet a standardized design for SMRs, with nearly 130 different technologies existing worldwide.
SMRs also face challenges similar to their larger counterparts. Most of the world’s uranium is produced by a few countries, and sources for enrichment are largely controlled by Russia and China. Additionally, some studies indicate that SMRs might generate higher levels of nuclear waste than traditional plants, with one 2022 survey suggesting waste could be double or even up to 30 times more due to certain fuels and coolants.
Despite these hurdles, SMRs represent a potential solution to meet growing electricity demands while also focusing on decarbonization. The Tennessee Valley Authority, the largest power provider in the US, has already signed agreements with multiple SMR companies to explore this technology further.
The projections for energy needs could also shift as newer, more efficient technologies emerge, potentially reducing demand for large-scale energy projects like SMRs. This serves as a reminder that industries requiring heavy capital investment can be greatly affected by rapid technological advancements.