US Military and Tech Sectors Driving Innovation in Nuclear Small Modular Reactors

SMRs Seen as Solution for Reliable, Low-Carbon Energy

A new report by consulting firm KPMG estimates that the construction and operation of a single GE-Hitachi BWRX-300 small modular nuclear reactor in Poland could contribute over €5 billion to the Polish economy. The report was prepared for Orlen Synthos Green Energy (OSGE), a joint venture planning an ambitious nuclear construction program.

According to the report, a single 300MW BWRX-300 reactor could create over 2,700 jobs and generate €5.1 billion in gross added value for Poland over its 60-year lifetime. It estimates the reactor would contribute €3 billion in employee wages, €88 million in personal income tax revenue, €155 million in corporate tax revenue, and €360,000 annually in local property taxes.

The report highlights the significant economic benefits that new nuclear capacity can provide through high-paying jobs and tax revenue. It points to data from the US and Central Europe showing nuclear employees earn 20-30% above average industry wages, with salaries ranging from $80,000 to $175,000. OSGE sees nuclear power, specifically GE-Hitachi's BWRX-300 reactors, as crucial to Poland's energy security and economy. The company is still finalizing exact locations but is considering deploying the reactors in Wloclawek, Ostroleka, and Stalowa Wola.

The report bolsters the economic case for SMRs in Poland. A single 300MW reactor could deliver thousands of jobs, billions in GDP growth, and vital tax revenue while securing Poland's energy independence. The positive conclusions may encourage further SMR deployment in Poland and broader adoption of SMR technology.

Debate Heats Up Over Nuclear Power's Role in Australia's Energy Future

A new government analysis estimates it would cost AUD387 billion (€233 billion) to replace all of Australia's coal plants with small modular nuclear reactors (SMRs). Climate Minister Chris Bowen said the high costs make a full nuclear transition unrealistic and "a fantasy" advocated by the opposition.

The report found 71 SMRs, each providing 300MW, would be required to replace 21GW of retiring coal capacity. With SMR capital costs estimated at AUD18,167/kW in 2030, compared to AUD1,058/kW for solar and AUD1,989/kW for wind, the nuclear transition would be extraordinarily expensive. The opposition dismissed the figures as exaggerated and politically motivated. They argue nuclear is necessary for Australia to achieve net zero emissions and plan to unveil a proposal to convert coal regions into nuclear hubs. One 300MW reactor could remove 1.6 million tonnes of CO2 annually, equivalent to 900,000 petrol cars.

A US study showed the potential benefits of converting coal plants to nuclear, adding jobs and economic growth while improving the environment. But Australia currently bans nuclear energy, despite having substantial uranium resources. The government aims for 82% renewable electricity by 2030, up from 35% today. AUD20 billion in funding has been committed to upgrade transmission infrastructure. While some support lifting the nuclear ban, the government insists it has no plans to change the prohibition.

The high costs estimated make a full-scale nuclear transition seem unrealistic in the near term. But SMRs may play a role in Australia's energy mix further in the future, especially if costs decline. For now, renewables remain the lowest cost and government-backed option for decarbonization. But the nuclear debate reflects political divides on the best path to net zero.

US Military Invests in Transportable Microreactor Designs

The US Department of Defense has awarded a contract to X-energy to design a transportable nuclear microreactor prototype, advancing Project Pele started in 2022. This parallels an existing contract with BWX Technologies to develop a separate transportable microreactor design.

The goal of Project Pele is to build an "inherently safe" microreactor that can provide 1-5MW of electricity for at least 3 years. It must be deployable within 3 days and removable within 7 days, enabling rapid deployment in isolated areas. The project involves multiple government agencies and aims to advance microreactor safety and nonproliferation standards globally. By funding two unique designs in parallel, the military aims to provide itself with diverse nuclear power options for installation and operational energy needs as it looks to electrify its vehicle fleet and expand energy-intensive capabilities.

The military uses around 30 TWh of electricity and over 10 million gallons of fuel per day. A safe, transportable microreactor could provide carbon-free energy without adding to fuel demand, supporting remote operations. The BWX prototype is a high-temperature gas-cooled reactor using HALEU fuel, on track for 2024 completion and 2025 operation. The X-energy contract will complement this with an additional transportable design ready for commercial and military licensing.

For investors, Project Pele represents a major government investment in microreactor technology, which could spur further private sector interest and development. It suggests potential for military and commercial applications for transportable microreactors, providing resilient carbon-free energy off the grid. Success in the project may validate the technology and produce proven designs ready for wider deployment. While still early stage, it's a sector worth monitoring given the sizeable market opportunity.

Data Centers Turn to Nuclear for Carbon-Free Power

New York's Standard Power will partner with NuScale to build two small modular reactor (SMR) facilities totaling nearly 2GW to power data centers in Ohio and Pennsylvania. NuScale will provide 24 units of its 77MW Voygr SMR technology, the only SMR design approved by the US Nuclear Regulatory Commission.

With growing electricity demand from AI computing and data centers, but declining baseload capacity, Standard Power sees SMRs as sustainable baseload power. NuScale's carbon-free SMRs can address the generation gap. Global data center electricity use was 220-320 TWh in 2021, nearing some countries' total consumption. As operators seek low-carbon power, SMRs are an option.

For investors, these plans represent major potential SMR deployment in a sizable new market. Data centers require immense reliable power; SMRs can provide carbon-free baseload electricity. With NuScale partnering with Standard Power and having agreements with countries like Poland, momentum is building for commercializing SMR technology. Successfully powering data centers with SMRs could spur wider adoption. While still in the early stages, these plans highlight the disruptive potential of SMRs in powering the digital economy with clean, resilient nuclear energy. It's a sector to monitor as SMR development advances.