With the second season of 𝘍𝘢𝘭𝘭𝘰𝘶𝘵 on the way, Silicon Valley seems to be taking its fresh interest in nuclear energy to the real world. Tech giants like Amazon, Google, and Microsoft have all announced new nuclear projects aimed at powering their data centers. And what’s their go-to choice? Small Modular Reactors (SMRs). The first commercial SMRs are (optimistically) scheduled for 2030, true to the Valley’s enthusiasm for disruption. So, let’s take a look at what’s 𝘢𝘤𝘵𝘶𝘢𝘭𝘭𝘺 happening with SMRs right now.
Today, we have over 𝟭𝟮𝟬 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁 𝗦𝗠𝗥 𝗽𝗿𝗼𝗷𝗲𝗰𝘁𝘀 globally, with 5 under construction and around 50 in various stages of development, according to the latest data from the World Nuclear Association. Three years ago, there were barely 70 projects; back in 2018, there were only 40. This growth shows the pace of interest, but not necessarily progress. Most SMRs remain in the design phase or are stuck in licensing with no operational reference plant or contractual commitment to build.
The Russian SMR RITM-200 and China’s ACP100 are among the first to break ground for commercial use. Meanwhile, U.S.-based NuScale, once seen as a front-runner in light-water SMR tech, had to delay its project after failing to hit commercial targets for its site. Initial estimates for NuScale’s CAPEX were pegged at $𝟭,𝟮𝟬𝟬/𝗸𝗪 but are now closer to $𝟱,𝟭𝟬𝟬/𝗸𝗪. These budget jumps highlight the common challenge of nuclear projects: overruns in both time and cost.
Will these new SMR projects avoid the all-too-familiar nuclear project hurdles? So far, no evidence suggests they will. But, Silicon Valley’s deep pockets may be willing to tolerate a doubled (or even tripled) budget and a few “additional” years. On the upside, this interest might finally mean a cash flow boost for nuclear startups.
Is the SMR hype here to stay? I hope it stays long enough for SMR startups to get their much-needed funding. But there are better and quicker ways to make money in the nuclear industry.
👉Follow me for more insights into all things Cleantech!