# Small Nuclear Reactors Face Cost and Fuel Challenges

> Small nuclear reactors promise clean energy but face steep costs and fuel shortages.
- Title: Small Nuclear Reactors Face Cost and Fuel Challenges
- Summary: Small nuclear reactors promise clean energy but face steep costs and fuel shortages.
- Keywords: small modular reactors, nuclear energy, cost overruns, fuel supply, ontario power generation, darlington, haleu, smr, ai data centers, nuclear reactors, canada, united states
- Source: Financial Post — https://financialpost.com/financial-times/the-trouble-with-small-nuclear-reactors
- Author: Financial Times
- Published: 2026-10-30T15:57:35+00:00
- Read time: 2 min
- Topics: small modular reactors, nuclear energy, cost overruns, fuel supply, ontario power generation, darlington, haleu, smr, ai data centers, nuclear reactors, canada, united states
## 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.
## Key takeaway

Small modular reactors could power 300,000 homes but face high costs and fuel supply issues.