Nuclear SMRs Is The Only Future For Energy Demand

Fresh & Hot curated AI happenings in one snack. Never miss a byte 🍔

The nuclear industry stands at an inflection point. After decades of struggling with massive construction costs, extended timelines, and public skepticism, a new generation of nuclear technology is emerging that promises to address these historical challenges while meeting the unprecedented energy demands of our digital age.

Small Modular Reactors (SMRs) represent perhaps the most significant evolution in nuclear power since the advent of commercial nuclear energy in the 1950s.

SMRs are defined as small nuclear reactors with a maximum output of 300 Megawatt electric (MWe) and can produce 7.2 million kWh per day. By comparison, large-size nuclear power plants have an output of over 1,000 MWe and can produce 24 million kWh per day.

Origins and Evolution of Small Modular Reactors

The concept of small modular reactors didn't emerge overnight. The nuclear industry has always recognized that smaller, factory-built reactors could offer significant advantages over their massive, site-built counterparts. The origins trace back to naval nuclear propulsion programs, where space constraints and operational requirements demanded compact, reliable reactor designs.

The U.S. Navy's nuclear program, initiated under Admiral Hyman Rickover in the 1950s, proved that small reactors could operate safely and reliably for decades. These naval reactors, typically ranging from 100-200 MWt, demonstrated the feasibility of modular construction and standardized designs.

The success of over 500 naval reactors operating without major incidents provided crucial proof-of-concept for civilian SMR applications.

The International Atomic Energy Agency (IAEA) defines SMRs as advanced reactors that produce electricity of up to 300 MW(e) per module, though some definitions extend this to 500 MW(e).

The "modular" aspect refers to factory fabrication, transportability, and scalability through multiple units.

Russia’s Akademik Lomonosov, the world’s first floating nuclear power plant that began commercial operation in May 2020, is producing energy from two 35 MW(e) SMRs

Illustration of a light water Small Modular Nuclear Reactor

The SMR Technology Spectrum

SMRs encompass a diverse range of reactor technologies, each with distinct advantages and applications:

Light Water Reactors (LWRs) represent the most mature SMR technology, leveraging decades of operational experience with conventional nuclear plants. NuScale Power's design, which received the first SMR design approval from the U.S. Nuclear Regulatory Commission, exemplifies this approach. These reactors use ordinary water as both coolant and moderator, making them familiar to existing nuclear operators.

High-Temperature Gas-Cooled Reactors (HTGRs) offer superior thermal efficiency and inherent safety features. Using helium as coolant and graphite as moderator, these reactors can achieve temperatures exceeding 750°C, enabling applications beyond electricity generation, including hydrogen production and industrial process heat.

Molten Salt Reactors (MSRs) represent perhaps the most radical departure from conventional designs. Using liquid fuel dissolved in molten fluoride salts, these reactors operate at atmospheric pressure and can theoretically achieve higher fuel utilization rates while producing less long-lived radioactive waste.

Fast Breeder Reactors (FBRs) in SMR configurations promise to address fuel sustainability concerns by converting fertile uranium-238 into fissile plutonium-239, effectively extending uranium resources for millennia.

Innovation Driving SMR Development

The current SMR renaissance is driven by several key innovations that address the fundamental challenges that have plagued nuclear power:

Passive Safety Systems represent a paradigm shift in reactor design philosophy. Unlike conventional reactors that rely on active safety systems requiring power and operator intervention, SMR designs are generally simpler.

The safety concept for SMRs often relies more on passive systems and inherent safety characteristics of the reactor, such as low power and operating pressure.

This means that in such cases no human intervention or external power or force is required to shut down systems, because passive systems rely on physical phenomena, such as natural circulation, convection, gravity and self-pressurization.

These increased safety margins, in some cases, eliminate or significantly lower the potential for unsafe releases of radioactivity to the environment and the public in case of an accident.

SMRs also have reduced fuel requirements. Power plants based on SMRs may require less frequent refuelling, every 3 to 7 years, in comparison to between 1 and 2 years for conventional plants. Some SMRs are designed to operate for up to 30 years without refuelling.

Factory Construction addresses the chronic problem of nuclear construction delays and cost overruns. By building reactor modules in controlled factory environments, manufacturers can achieve better quality control, reduce construction time, and benefit from learning curves that lower costs with each unit produced.

Integral Design eliminates the need for large external piping systems by housing the reactor core, steam generators, and other primary components within a single vessel. This approach reduces the potential for loss-of-coolant accidents and simplifies plant layouts.

Advanced Materials enable SMRs to operate at higher temperatures and in more corrosive environments than conventional reactors. Developments in accident-tolerant fuels, corrosion-resistant alloys, and high-temperature ceramics expand the operational envelope of SMR designs.

Naval Applications and Military Heritage

The U.S. Navy's nuclear program remains the gold standard for small reactor operations. With over 5,000 reactor-years of operation across submarines, aircraft carriers, and icebreakers, naval reactors have demonstrated exceptional safety and reliability records.

Naval SMRs differ from civilian designs in several crucial aspects. They operate on highly enriched uranium (HEU) typically exceeding 90% uranium-235, compared to the 3-5% enrichment used in civilian reactors. This allows for compact core designs and extended refueling intervals often exceeding 20 years.

The operational experience from naval reactors has provided invaluable insights for civilian SMR development. Lessons learned in compact design, automated operation, and maintenance procedures have directly influenced civilian SMR designs. The Navy's emphasis on operational simplicity and reliability has shaped the development of passive safety systems now standard in advanced SMR designs.

Industrial Applications Beyond Electricity

SMRs now offer unique advantages for industrial applications that conventional large reactors cannot match. Their modular nature allows for phased deployment, matching capacity additions to demand growth. The smaller financial commitment per unit reduces investment risk and enables financing structures unavailable to large nuclear projects.

Process Heat Applications represent a significant market opportunity. Many industrial processes require high-temperature heat that SMRs can provide more efficiently than burning fossil fuels. Chemical processing, steel production, and cement manufacturing could benefit from SMR-supplied process heat, potentially reducing industrial carbon emissions significantly.

Desalination presents another promising application, particularly for coastal regions facing water scarcity. SMRs can provide both electricity and process heat for desalination plants, addressing two critical infrastructure needs simultaneously.

Remote Power Generation for mining operations, military bases, and isolated communities represents a natural fit for SMR technology. The ability to transport reactor modules to remote locations and operate them with minimal infrastructure makes SMRs attractive for applications where grid connection is impractical.

Addressing Historical Nuclear Challenges

The nuclear industry's history is marked by several high-profile challenges that SMRs are specifically designed to address:

Cost and Construction Issues have plagued nuclear power for decades. Large nuclear plants routinely exceed initial cost estimates by factors of two or more, with construction delays measured in years. SMRs address these challenges through factory construction, standardized designs, and modular deployment strategies that reduce both initial capital requirements and construction risk.

Safety Concerns following accidents at Three Mile Island, Chernobyl, and Fukushima have shaped public perception of nuclear power. SMRs incorporate lessons learned from these incidents, with passive safety systems that don't require external power or operator intervention. The smaller radioactive inventory per module also reduces the potential consequences of any accident.

Waste Management challenges are addressed through advanced fuel cycles and reactor designs that can consume existing nuclear waste as fuel. Some SMR designs promise to reduce long-lived radioactive waste production compared to conventional reactors.

Proliferation Concerns are mitigated through sealed reactor designs that don't require on-site fuel handling and extended refueling intervals that reduce opportunities for diversion of nuclear materials.

SMRs Powering the AI Revolution

The explosive growth of artificial intelligence and data centers has created unprecedented electricity demands that are reshaping energy markets. In March 2024, AWS signed an agreement with Talen Energy to acquire a 960MW data center powered by the Susquehanna nuclear power plant in Pennsylvania, demonstrating the industry's growing confidence in nuclear power.

Data centers require several characteristics that make SMRs particularly attractive: constant baseload power, exceptional reliability, and scalability. Tech giants like Meta, Amazon, Google, and Microsoft are turning to nuclear power to meet the growing energy demands of AI and data centers.

The symbiotic relationship between SMRs and data centers extends beyond simple power supply. Advanced SMR designs can provide both electricity and cooling, solving two major challenges for data centres - power availability and heat management. This integrated approach could significantly improve overall energy efficiency.

Microsoft's Nuclear Strategy includes partnerships with nuclear developers to secure long-term clean energy supplies for its growing data center footprint. The company's commitment to carbon neutrality by 2030 makes nuclear power an attractive option for meeting baseload electricity demands.

Google's SMR Investments include a pioneering Master Plant Development Agreement with Kairos Power to develop a 500-MW fleet of advanced reactors. This represents one of the largest corporate commitments to next-generation nuclear technology.

Oracle's Gigawatt Vision announced plans to build a gigawatt-scale data center powered by three SMRs, securing building permits as part of a push to expand its cloud infrastructure. This ambitious project demonstrates the scale of nuclear-powered data center development.

The energy intensity of AI workloads, particularly large language models and machine learning training, creates sustained high-power demands that align perfectly with nuclear power's baseload characteristics. Unlike renewable energy sources that require expensive storage systems to provide continuous power, SMRs can deliver reliable electricity 24/7 regardless of weather conditions.

The Future Nuclear Landscape

The path forward for SMRs involves overcoming several remaining challenges while capitalizing on favorable market conditions. SMRs must get to sufficient scale so they can become cost competitive with other energy sources including large reactors, renewables, and fossil fuels.

Regulatory Frameworks are evolving to accommodate SMR designs that differ significantly from conventional large reactors. The U.S. Nuclear Regulatory Commission has approved its first SMR design and is developing streamlined licensing processes for future designs. International coordination through the IAEA is helping harmonize SMR regulations across different countries.

Supply Chain Development represents both a challenge and an opportunity. SMRs require specialized manufacturing capabilities that don't currently exist at scale. However, the potential for factory production and standardized components could drive down costs through economies of scale once production volumes increase.

Financing Models are evolving to support SMR deployment. The smaller capital requirements per unit make SMRs accessible to a broader range of utilities and independent power producers. Power purchase agreements with large electricity consumers, particularly data centers, are providing the revenue certainty needed to attract project financing.

International Deployment is accelerating as countries seek to reduce carbon emissions while maintaining energy security. The European Industrial Alliance on SMRs was launched in February 2024, demonstrating growing international coordination in SMR development.

Conclusion: The Nuclear Renaissance

Small Modular Reactors represent more than just a technological evolution; they embody a fundamental reimagining of how nuclear power can serve 21st-century energy needs. By addressing the historical challenges of cost, safety, and public acceptance while meeting the unprecedented demands of our digital economy, SMRs offer a pathway to a clean energy future that seemed impossible just a decade ago.

The convergence of AI-driven electricity demand, climate change imperatives, and technological maturation has created a unique window of opportunity for SMR deployment. Interest in nuclear-powered data centers surged in 2024, but it may still be years before the SMR market gains real-world momentum. However, the foundation is being laid today through corporate commitments, regulatory approvals, and technological advances that will define the energy landscape for decades to come.

As of early 2024, only five SMRs were operating worldwide. But with several other projects under construction and nearly 20 more in advanced stages of development, SMRs hold promise for expanding global emission-free electricity capacity.

With that said, certain obstacles remain for the wide-scale adoption of SMRs in the United States, which was particularly apparent in the 2023 cancellation of the NuScale SMR project.

To fully realize the benefits of SMRs and advance decarbonization efforts, a focus on financial viability, market readiness, and broader utility and public support may be essential.

The nuclear renaissance powered by SMRs isn't just about generating electricity; it's about enabling the technologies that will shape our future.

From powering the artificial intelligence systems that will transform every industry to providing the clean energy needed to address climate change, SMRs stand ready to play a central role in humanity's energy future.

The question is no longer whether SMRs will succeed, but how quickly they can scale to meet the challenges ahead.

Image Credits - Motive Power, Wikipedia and Visual Capitalist, Energy.gov

---

About the author: Rupesh Bhambwani is a technology enthusiast specializing in the broad technology industry dynamics and international technology policy.

When not obsessing over nanometer-scale transistors, energy requirements of AI models, real-world impacts of the AI revolution and staring at the stars, he can be found trying to explain to his relatives why their smartphones are actually miracles of modern engineering, usually to limited success.

---