From Financialexpress · FE Bureau · · 1m 50s
Thorium’s missing market
India can boost thorium adoption by improving lab access, enforcing procurement conditions, and ensuring supplier obligations.
In brief
India can boost thorium adoption by improving lab access, enforcing procurement conditions, and ensuring supplier obligations. India can improve thorium’s commercial viability through better lab access, procurement rules, and supplier commitments. Originally reported by Financialexpress.
Thorium’s history presents an arresting paradox
Thorium energy has shown technical promise for decades but faces commercial and financial challenges.
Shippingport reactor generated 2.13 billion kWh
America’s Shippingport reactor generated approximately 2.13 billion gross kilowatt-hours through its thorium-uranium-233 breeder core.
Oak Ridge’s Molten-Salt Reactor Experiment
Oak Ridge’s Molten-Salt Reactor Experiment operated between 1965 and 1969, reaching about 7.4 megawatts thermal.
Uranium’s self-reinforcing advantage
Uranium suppliers accumulated operating experience and familiar regulatory procedures made each additional investment easier to justify.
Resource economics strengthen uranium’s position
The Nuclear Energy Agency identified 7.93 million tonnes of recoverable uranium resources as of January 2023, across recovery-cost categories extending to $260 per kilogram.
Thorium’s financial challenges
Assume investments of Rs 15 crore per Mw, annualised over 60 operating years at an 85% capacity factor.
Capital cost impact
Raising the real cost of capital from 5% to 12% increases capital recovery from Rs 1.06 to Rs 2.42 per kWh.
Capacity factor effect
Lowering the assumed capacity factor from 85% to 70% raises that capital component from Rs 1.63 to Rs 1.98 per kWh.
Thorium development adds uncertainty
The International Energy Agency observes that lengthy permitting process and construction can postpone a large reactor’s breakeven point until 20-30 years after project initiation.
India could adapt GAIN voucher model
India could adapt the US Gateway for Accelerated Innovation in Nuclear voucher model to fund access to specialised laboratory services.
Utilities should shape projects
The Nuclear Power Corporation of India could invite developers to propose limited trials against operator-defined requirements and conventional-fuel benchmarks.
The essence
India can improve thorium’s commercial viability through better lab access, procurement rules, and supplier commitments.
/https://i.s3.glbimg.com/v1/AUTH_63b422c2caee4269b8b34177e8876b93/internal_photos/bs/2026/o/R/UnMtqbTGWYXAkFAbkXjg/444391567.jpg)
