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The Future of Nuclear Power: Small Modular Reactors in the UK

The Hinkley Point C power plant located in Somerset stands as a monumental project in the nuclear energy landscape. Spanning 176 hectares (435 acres), it promises an output of 3.2 gigawatts, sufficient to power approximately six million homes. However, it is not just its size that raises eyebrows; the financial implications are staggering, with costs soaring to an estimated £48 billion and construction delays stretching at least five years. This scenario has turned Hinkley Point C into a cautionary tale about the complexities involved in nuclear power development.

Amid these challenges, a group of companies is advocating for a potentially more efficient solution: small modular reactors (SMRs). These relatively compact reactors can be manufactured in factories before being assembled on-site, offering a quicker and possibly more economical alternative to massive projects like Hinkley Point C.

Among those leading the charge is Rolls-Royce, a prominent player not only in the nuclear sector but also in naval reactor construction based in Derby. The company is currently in competition with three North American firms, all vying for contracts from the UK government.

Stephen Lovegrove, who chairs Rolls-Royce SMR, asserts that the company is ahead of its competitors by about 18 months. In a recent interview at the company’s London headquarters, he shared his concerns about a further year of delays in the UK government’s decision-making process regarding SMR contracts, which has postponed the anticipated launch of a new reactor to 2032 or 2033—pushing the timeline back from an already extended 2029 to 2031 deadline.

Despite facing setbacks, Rolls-Royce has sustained its commitment to this initiative, even as its chief executive, Tufan Erginbilgiç, has shuttered less promising ventures under a recovery strategy. The operational head of Rolls-Royce SMR, Chris Cholerton, cited the need to seek essential components like pressure vessels from abroad due to domestic delays. “Every day that goes by without a decision increases the risk of falling behind our global competitors,” Lovegrove noted, highlighting the urgent need for a resolution.

Reflecting on past government decisions, Lovegrove indicated that the failure to invest in domestic turbine manufacturing during a decade of growth in wind energy was a missed opportunity. “Austerity required particular investment choices,” he explained, underscoring the impact of historical financial constraints on the energy sector.

The UK government has recently shortlisted four firms, including Rolls-Royce and American companies Holtec and GE Hitachi, for the next phase of SMR development. A final decision is expected in conjunction with Chancellor Rachel Reeves’s spring financial statement.

The Nuclear Landscape in the UK

Advancing SMR technology could signify a pivotal moment for the UK’s nuclear energy future. The nation’s nuclear power output peaked at 12.7 gigawatts in 1994, accounting for 17% of its overall energy capacity. However, the subsequent years have seen a decline in new ventures, with Hinkley Point B being the only reactor approved since the commissioning of Sizewell B in 1995. Plans for Sizewell C are underway but have also experienced an upward revision in cost estimates, nearing £40 billion.

Lovegrove outlined that the first 470-megawatt SMR from Rolls-Royce will be deployed in the UK, with further plans for a partnership in the Czech Republic, followed by additional installations in other European nations by 2034. Investments from notable stakeholders, including Qatar’s sovereign wealth fund, totaling £280 million, further strengthen the financial backing for SMR projects.

Proponents of SMRs argue that these reactors could stabilize energy supply, especially at times when renewable sources face intermittency issues, such as during low wind conditions or cloudy weather. The escalating energy demands of major technology firms, particularly in developing artificial intelligence, also necessitate reliable power sources. In this context, major players like Microsoft and Google are already exploring nuclear deals to support their energy needs.

While the SMR initiative presents opportunities, skepticism remains. Doug Parr, policy director for Greenpeace UK, expressed doubts about the feasibility of SMRs, suggesting that resources might be better allocated toward renewable energy alongside energy storage solutions. He pointed to the struggles of American firm Nuscale, which was forced to abandon a project in Idaho due to rising costs as an example of the hurdles SMRs might face. Parr maintained that despite the promises of smaller reactors, they have not substantially addressed the efficiency concerns associated with larger nuclear facilities.

The Modular Advantage

All contenders in the SMR field, including Rolls-Royce and competitors like Nuscale and Rosatom, utilize various forms of pressurized water reactor technology, albeit in smaller configurations. Rolls-Royce’s modular design, taking up about two hectares, contrasts with the extensive sites needed for larger plants like Hinkley or Sizewell, which are complex and often vulnerable to weather impacts during construction.

Lovegrove emphasized that this modular design could significantly mitigate the risks associated with building nuclear power stations, allowing for a more distributed approach to energy generation. The projected investment for three SMRs in the UK implies a budget of around £10 billion, with operational costs estimated at approximately £50 to £60 per megawatt-hour—lower than those of Hinkley and competitive with wind energy prices as set by recent government auctions.

The current geopolitical climate adds urgency to nuclear discussions, especially following the energy crisis exacerbated by Russia’s invasion of Ukraine. There’s a growing consensus that relying heavily on imported energy supplies requires diversification, a sentiment that Lovegrove echoes, noting how various geopolitical actors view emerging nuclear technologies as a strategic advantage.

Alongside his role at Rolls-Royce SMR, Lovegrove is also involved in assessing the AUUKUS security alliance, which grants Australia access to nuclear submarine capabilities backed by the UK and the US. He maintains that this endeavor operates separately from civil nuclear initiatives, yet it holds the potential to bolster demand for nuclear technology developments, demonstrating the interconnectedness of defense and energy innovation.

Looking ahead, Rolls-Royce is optimistic that the UK government’s push for enhanced energy security will favor the adoption of domestically produced nuclear solutions. “We have a unique chance to become leaders in small modular reactors and their entire supply chain,” Lovegrove stated. “I earnestly hope we seize this opportunity.”

Source
www.theguardian.com