From Financial Post · Financial Times · · 2m
Small Nuclear Reactors Face Cost and Fuel Challenges
Small nuclear reactors promise clean energy but face steep costs and fuel shortages.
In brief
Small nuclear reactors promise clean energy but face steep costs and fuel shortages. Small modular reactors could power 300,000 homes but face high costs and fuel supply issues. Originally reported by Financial Post.
First Small Nuclear Reactor in Ontario
Construction of the first of four small nuclear reactors in Darlington, Ontario, is underway.
Estimated Cost of Project
The project is estimated to cost US$15 billion ($21 billion) but critics question the figure.
Professor's Concerns
Mark Winfield, a York University professor, warns of enormous risks to ratepayers and taxpayers.
Small Modular Reactors (SMRs)
SMRs are scaled-down nuclear reactors designed to be cheaper and faster to build.
Potential Benefits of SMRs
Proponents argue SMRs provide constant power without battery storage and are quicker to deploy.
Government Support for SMRs
Governments worldwide are backing SMRs to meet rising energy demands, especially for AI data centers.
European Commission and US Investment
The European Commission expects SMRs to become key to the EU’s energy mix by the 2030s, and the US has pledged US$3 billion.
Cost Overruns in SMR Projects
X-Energy’s SMR project costs rose from US$2.5 billion in 2021 to almost US$6 billion by 2023.
Ratepayer Impact in Ontario
OPG may recover US$800 million via higher electricity prices between 2027 and 2031.
Alternative Energy Solutions
Critics argue money could be better spent on cheaper renewables or conventional nuclear reactors.
Historical Context of SMRs
SMRs were initially designed for airborne use but later adapted for submarines and land-based power.
Modern SMR Designs
Dozens of SMR companies are pursuing different designs, including molten salt reactors and industrial steam applications.
Fuel Supply Challenges
Haleu, a concentrated uranium fuel, is scarce outside China and Russia, with prices rising to US$7,000 per kilogram.
Government Efforts to Address Fuel Shortages
The US Department of Energy has committed US$2.7 billion to build domestic uranium enrichment capacity.
Ontario's SMR Plan
The Darlington reactors use conventional nuclear fuel, not haleu, to avoid supply chain risks.
Future of SMRs
Experts say SMRs could be cost-competitive for industrial use but face significant hurdles.
The big picture
Small modular reactors could power 300,000 homes but face high costs and fuel supply issues.
