Failure of USA’s NuScale small nuclear reactors (SMRs) not a good omen for Rolls Royce and other UK SMR developers

Concern for Rolls-Royce, other developers after US mini nuclear setback

Proactive ,30 Nov 2023

A major setback in the roll out of mini nuclear power plants in the US has raised concern over the UK’s own bid to introduce the technology, whose developers include Rolls-Royce Holdings PLC (LSE:RR.).

Cancelling plans for its first small modular reactor (SMR) in the US earlier this week, NuScale blamed a lack of interest in the plant’s power output by local utilities.

“Despite significant efforts […] it appears unlikely that the project will have enough subscription to continue toward deployment,” the company said in a statement.

Given the plant was set to be the first of its kind in the US, having been granted regulatory approval in 2022, concern has been raised over the ramifications on other countries looking to utilise modular nuclear technology………………………..

Rolls-Royce is among frontrunners developing such technology in the UK, with its SMR representing the only system currently being assessed by independent regulators.

Cambridge University nuclear energy professor Tony Roulstone commented that failure of NuScale to push through its SMRs was “bad for the broader market”, however.

“They’re the one with a ticket from a safety authority,” he added. NuScale has received some US$600 million from the US government since 2014.

Pointing to the UK, he suggested just one version of the technology was needed, given companies will need several orders to help bring down costs as a whole.

“You can do it if you’ve got an order for ten,” he said. “You can’t do this if you’ve got an order for one.”

A host of companies are indeed looking to build SMRs though, such as EDF, GE-Hitachi and of course Rolls-Royce and NuScale.

Alongside the fact each is looking for public support and contracts, concern has been raised in the UK over a lack of urgency on the government’s part.

Rolls-Royce has previously laid out the need for fast decision making on SMRs, with chief executive Tufan Erginbilgic himself having said the winner of the UK’s ongoing government-run SMR competition will need “tangible commitments in terms of projects – multiple projects”.  https://www.proactiveinvestors.co.uk/companies/news/1034737/concern-for-rolls-royce-other-developers-after-us-mini-nuclear-setback-1034737.html

December 2, 2023 - Posted by Christina Macpherson | Small Modular Nuclear Reactors, UK