Small modular reactors: an eye-opener for advanced nuclear power supporters

The recent termination of NuScale’s agreement to implement its inaugural small modular reactors (SMRs) due to increasing project expenses serves as a wake-up call for supporters of advanced nuclear power. This follows similar setbacks experienced by other advanced reactor firms, including staff reductions at X-Energy, rejection of Oklo’s Aurora reactor license application by the Nuclear Regulatory Commission, and anticipated elevated cost projections for TerraPower and XEnergy’s innovative reactor technologies.

Despite a widespread public consensus on the importance of next-generation nuclear reactors for meeting decarbonization objectives, current events suggest that commercialization endeavors are off course. These setbacks highlight the challenges in developing and commercializing advanced nuclear systems, such as securing adequate funding and surmounting regulatory hurdles. Consequently, industry stakeholders and policymakers need to address these issues and foster an environment promoting further research and development in this vital field.

Addressing the challenges facing advanced nuclear power development

To tackle the obstacles currently confronting advanced nuclear power, lawmakers must make stronger commitments to bring the technology to market. This involves transparent and public discussions about the industry’s challenges and potential resolutions. A key issue is the influence of high interest rates and commodity prices on capital-intensive clean energy technologies.

As NuScale has discovered, interest rates and steel prices have risen substantially since 2016, creating problems for low-carbon technology deployment. To address this concern, policymakers must consider implementing incentives, such as tax credits and subsidies, targeting the advanced nuclear power sector. By doing so, they can help offset the increased costs and alleviate financial barriers for companies aiming to develop and deploy these innovative energy solutions.

Existing policy instruments and dependencies on foreign supply chains

Current policy instruments, including tax credits, clean energy standards, and loan guarantees, as well as the dependence on Chinese supply chains, may not be sufficient to encourage the expansion of clean technology in the present climate. Economic and political strains between the U.S. and China exacerbate the situation, as companies like Terrapower have experienced increasing difficulties in developing their technologies in China.

To ensure advanced nuclear reactors remain a viable solution for decarbonization efforts, the challenges resulting from surging commodity prices and interest rates must be met. Additional support from the government and the private sector, in the form of investments, research grants, and subsidies, could help overcome these obstacles and promote the growth of clean technology.

Collaboration and global cooperation

Collaboration between countries and stakeholders is essential to address the complexities of global supply chains and establish an environment conducive to the development of advanced nuclear reactor technology. By fostering international cooperation, sharing information, and promoting active engagement among different parties, the advanced nuclear power sector can overcome current setbacks and play a pivotal role in achieving global decarbonization goals.

In conclusion, the termination of NuScale’s SMR project and subsequent setbacks faced by other companies in the industry underline the challenges in developing advanced nuclear power technologies. Stronger commitments from lawmakers, targeted incentives, and collaboration at an international level are crucial for overcoming these obstacles and ensuring advanced nuclear power can effectively contribute to global decarbonization efforts.

First Reported on: thebreakthrough.org

FAQs

1. What are the recent setbacks faced by advanced nuclear reactor companies?

NuScale’s termination of its small modular reactor (SMR) agreement, staff reductions at X-Energy, Nuclear Regulatory Commission’s rejection of Oklo’s Aurora reactor license application, and anticipated elevated cost projections for TerraPower and XEnergy’s innovative reactor technologies are some of the recent setbacks experienced by advanced reactor firms.

2. What are the challenges faced by the advanced nuclear power industry?

Securing adequate funding and surmounting regulatory hurdles are the main challenges for the development and commercialization of advanced nuclear systems.

3. What solutions are suggested to address these challenges?

To tackle these obstacles, it is vital to strengthen the commitment of lawmakers to bring the technology to market, support transparent and public discussions about the industry’s challenges and potential solutions, implement incentives targeting the advanced nuclear power sector, and collaborate on an international level.

4. How do existing policies and foreign supply chains influence the advanced nuclear power development?

Existing policy instruments, such as tax credits, clean energy standards, and loan guarantees, may not be adequate to encourage clean technology expansion in the current climate. Dependence on Chinese supply chains exacerbates the situation due to economic and political strains between the U.S. and China.

5. What is the importance of collaboration and global cooperation in advanced nuclear power development?

Collaboration between countries and stakeholders is crucial to addressing the complexities of global supply chains, establishing an environment conducive to the development of advanced nuclear reactor technology, and achieving global decarbonization goals.