Small-scale nuclear power: what it is and how developed it is in the world

In the process of green transformation and energy transition, the world is faced with the problem of the need for huge investments in renewable forms of electricity, which are also unstable in nature. One of the options for solving this problem is nuclear power with its relatively cheap and recognized “clean” electricity, including in a not very common format – in the form of small nuclear reactors.

What are small modular reactors?

Nuclear power is the only low-carbon energy source that provides continuous generation regardless of weather conditions. Nuclear power is already categorized as green in many countries. The IPCC estimates that generating 1 kWh at a nuclear power plant emits 12 grams of CO2 into the atmosphere, compared to 820 g and 490 g per kWh for coal and gas-fired power plants, respectively.

A new concept of nuclear power development is small modular reactors (SMR), or SMR (Small Modular Reactors), which are designed to solve a number of problems associated with large NPPs. According to the IAEA classification, such plants are those with a capacity of up to 300 MW.

In recent years, SMR technologies have been developed in many countries, including China, Russia, USA, South Korea, UK, France, Belgium and others. Both large corporations and small startups are developing SMR technologies. For example, the startup Deep Atomic has developed a 60 MW SMR that occupies an area of only 80 square meters.

Prospects for small reactors

Small modular nuclear reactors represent a promising direction in the development of nuclear power. They have a number of undeniable advantages, but it is necessary to wait for the widespread introduction of SMRs. Then it will be possible to answer the question of economic feasibility and efficiency of using small-scale power.

In the coming years, SMR projects will be realized:

1. The American company NuScale, which in 2022 completed certification of a reactor of its own design and is going to build six SMRs with a total capacity of 300 MW at the site of the National Laboratory in Idaho.
2. UK-based Rolls-Royce, which has established a subsidiary to develop and build small nuclear power plants.
3. China will begin construction of an onshore small power nuclear power plant with a 125 MW reactor and other projects.

The most important impetus in the development of small-scale nuclear power may be the desire of major technology companies Google, Microsoft and Amazon to provide their energy-intensive data centers for artificial intelligence systems with electricity through SMR.

The advantages of SMRs include:

1. Increased flexibility in the use of nuclear power. SMRs can be installed in remote areas where it is expensive to build other types of generation, and it is not economically feasible to build transmission lines. Due to their modularity, SMRs can be easily scaled up to meet electricity needs. They can be used for different purposes – electricity generation as well as heat and industrial steam. Small reactors can also be used to provide reliable energy sources for certain energy-intensive industrial facilities, such as water desalination or hydrogen production.
2. Smaller initial investment against a variety of solutions. The cost of SMRs varies, but estimates indicate that, depending on size, small reactors can cost anywhere from $50 million for microreactors to $3 billion for larger plants. The output power of an SMR can range from 60 to 300 MW.
3. Reduced construction time and cost. SMRs in the form of modules are small, easy to transport, and do not require lengthy assembly, significantly reducing construction time and lowering overall costs.
4. Risk Reduction. SMRs tend to be simpler to design and utilize passive safety systems, reducing the likelihood of major accidents.

The very idea of active use of SMR faces serious challenges:

1. Lack of serial samples and rather high cost. The development and mass introduction of SMR is still at the initial stage and requires considerable time and investment. Therefore, the cost of solutions is still quite high, and the economic effect from the scale of production is still far away.
2. Lack of experience in commercial operation. Currently, there is limited experience in commercial operation of SMR, which creates certain risks. There are only two MSR projects in operation in the world today: the Akademik Lomonosov floating NPP, whose two reactors with a combined capacity of 70 MW were commissioned in 2020 in Chukotka, and a small NPP with two reactors with a capacity of 210 MW in China.
3. The need to implement regulatory regulation. The development of new regulations to govern the operation of small nuclear facilities may take considerable time.

The importance of the atom for steel sector

European steelmakers are closely following the development of small nuclear technologies and are already signing memorandums of understanding with energy companies. Their aim is to identify potential business models and technical solutions for further development. In turn, the Italian steel association Federacciai is already considering investments in SMRs in Italy over the next decade.

All this is happening amid high energy prices in Europe and with the understandable goal of gaining access to cheaper energy resources, including for the purposes of decarbonization and achieving energy independence. However, everyone understands that we are talking about 7-10 years, during which the legal regulation of the issue and reliable serial samples of SMRs themselves should appear.

At present, renewable energy sources are not sufficient for decarbonization processes using hydrogen. In addition, the price of hydrogen will remain too high. According to some estimates, large-scale use of hydrogen in steel industry is unlikely before 2040 due to high cost and difficult transportation.

At the same time, American steelmakers are also looking for nuclear energy supply options. The American steel corporation Nucor and NuScale Power will study the possibility of placing SMR at Nucor plants operating with electric arc furnaces.

As we can see, the prospects of combining atom and steel industry have an attractive future, which may become a reality in 7-10 years, as SMR technologies improve, international regulation emerges and prices for off-the-shelf solutions decrease.

Ukrainian realities

The efficiency of small-scale nuclear power technologies gives many developing countries a chance to obtain a stable source of cheap electricity, including for energy transition. In Ukraine, the development of SMR technology is seen as an important element of the country’s post-war recovery and renewal, which will contribute to energy security and decarbonization of the economy.

“Until 2022, the cost of electricity was one of the advantages for Ukrainian producers to export their products to the EU. This factor allowed Ukrainian iron and steel companies to be competitive despite 3-4 times higher cost of raised capital than European competitors. For the last 3-4 months the price of electricity for industry in Ukraine is the most expensive in the EU – from 120 to 140 per mWh (when in Sweden it is from 10 to 40 Euro). Without affordable and cheap electricity we will not be able to rebuild the country and we will not be able to make a green transition to stay in the EU market. Nuclear power – large and small – give Ukraine this opportunity along with investments in renewable energy. These SMR projects together with the US will give us an advantage over European countries, which are cautious about any nuclear power,” says Stanislav Zinchenko, CEO of GMK Center.

The development of SMR in our country is still at an embryonic level – research into the prospects and possibilities of introducing such technologies. Under the FIRST program (basic infrastructure for responsible use of SMR technology) Ukraine and the USA are launching three joint projects with total funding of $30 million:

• «Clean Fuel” – construction of a pilot plant for the production of clean hydrogen and ammonia;
• «Phoenix” – conversion of coal-fired power plants at SMR;
• «Clean Steel” – development of a roadmap for decarbonization of steel indsutry using SMR.

It is still difficult to say how successful these projects will be. In the conditions of war and constant threats, it is difficult to conduct such innovative research that would lead to correct conclusions. However, it is necessary to move in this direction now, and Ukraine already has developments to prepare the regulatory infrastructure for the implementation of the SMR.