nuclear-news

Why SMRs Are Taking Longer Than Expected to Deploy

Oil Price, By Felicity Bradstock – Sep 14, 2024

“…………………………………………..Several energy companies and startups, such as Terrapower – founded by Bill Gates, are developing SMR technology. The founders of Terrapower decided the private sector needed to take action in developing advanced nuclear energy to meet growing electricity needs, [?] mitigate climate change and lift [?] billions out of poverty.

Several SMR projects are also being backed by government financing. For example, in the U.S., the Department of Energy announced $900 million in funding to accelerate the deployment of Next-Generation Light-Water SMRs. In addition, many companies, such as Microsoft, have signed purchase agreements with energy companies to use SMRs, or are developing their own SMR strategies, to power operations with [?]clean energy. 

While there is huge optimism around the deployment of SMR technology, many of the companies developing the equipment have faced a plethora of challenges, which has led to delays and massive financial burdens. At present, only three SMRs are operational in the world, in China and Russia, as well as a test reactor in Japan. Most nuclear energy experts believe SMRs won’t reach the commercial stage in the U.S. until the 2030s.

NuScale cancelled plans to launch an SMR site in Idaho in 2023 after the cost of the project rose from $5 billion to $9 billion owing to inflation and high interest rates. This is a common issue, as companies must predict the costs of a first-of-a-kind project. Once one SMR site is launched and companies can establish tried-and-tested methods of deployment, a second site is expected to be cheaper and faster to develop. A trend that will continue as companies gain more experience. Eric Carr, the president of nuclear operations at Dominion Energy, explained, “Nobody exactly wants to be first, but somebody has to be.” Carr added, “Once it gets going, it’s going to be a great, reliable source of energy for the entire nation’s grid.”

Another issue is access to uranium. Russia is currently the only commercial source of high-assay low- enriched uranium (HALEU), which companies require to power their reactors. In late 2022, Terrapower announced it would be delaying the launch of its first SMR site in Wyoming due to a lack of fuel availability. However, the U.S. is developing its domestic production capabilities. The Biden administration is expected to award over $2 billion in the coming months to uranium enrichment companies to help jumpstart the supply chain. Meanwhile, Terrapower announced this summer that it is finally commencing construction on its Wyoming SMR site and is working with other companies to develop alternate supplies of HALEU. https://oilprice.com/Energy/Energy-General/Why-SMRs-Are-Taking-Longer-Than-Expected-to-Deploy.html

September 17, 2024 - Posted by Christina Macpherson | business and costs, Small Modular Nuclear Reactors