Operations

Small Modular Reactors (SMR): The Nuclear Comeback Story

How SMRs differ from conventional nuclear, the leading designs, and where deployment stands globally.

Small Modular Reactors (SMR) promise to reshape nuclear power by making reactors factory built, cheaper to construct, safer, and more flexibly sited. This guide covers the technology, leading designs, and where SMR deployment actually stands.

What makes SMRs different

AttributeConventional nuclearSMR
Size800 to 1,600 MW10 to 300 MW
ConstructionSite built over decadeFactory built, transported to site
Cost per unitUSD 5 to 15 billionUSD 500 million to 3 billion targeted
Safety systemsActiveIncreasingly passive
Deployment timeline10 to 15 years4 to 7 years targeted
SitingLarge sites near waterCompact, more flexible siting

Why now

  • Rapidly growing electricity demand from AI data centres.
  • Interest in firm low carbon generation.
  • Falling clean energy investment costs generally.
  • Federal support through IRA and DOE programmes.
  • Corporate net zero commitments requiring firm clean power.
  • Aging existing nuclear fleet.

Leading SMR designs

DesignDeveloperStatus
NuScale VOYGRNuScale Power (US)NRC design certification complete; Utah project cancelled 2023
BWRX 300GE HitachiOntario Darlington first commercial project
NatriumTerraPower (Bill Gates)Wyoming project under construction
Xe-100X-energyDow Chemical Texas partnership
Rolls-Royce SMRRolls-Royce SMR (UK)UK design assessment
eVinciWestinghouseMicroreactor programme
ACP100 (Linglong One)CNNC (China)China Hainan first grid connected SMR
Kairos KP-FHRKairos PowerMolten salt cooled, TVA partnership

China leadership

China ACP100 in Hainan Province became the world first grid connected SMR in 2024. Chinese SMR programme is well ahead of US and Western competitors in actual deployment.

Darlington BWRX 300

Ontario Power Generation Darlington project is the leading Western SMR construction, targeting first grid connection around 2029. Uses GE Hitachi BWRX 300 design. Second reactor site being pursued.

Natrium

TerraPower Natrium in Wyoming uses sodium fast reactor design with molten salt thermal storage. Enables load following capability. First construction started 2024, commercial operations targeted late 2020s.

Industrial applications

Key insight. Beyond electricity, SMRs are being pursued for industrial heat (steam methane reforming, hydrogen production, petrochemical), district heating, and process heat. High temperature designs like X-energy Xe 100 target industrial customers directly. This industrial application may be as valuable as electricity generation.

Data centre partnerships

Amazon (Talen Energy), Google, Microsoft (Constellation), and Meta all announced nuclear power partnerships. Growing AI electricity demand is driving nuclear deals. Some specifically involve SMRs.

Policy support

SupportValue
DOE Advanced Reactor Demonstration ProgramMulti billion dollar deployment support
IRA Advanced Nuclear PTCNew plants receive PTC
DOE loan programme (Section 1706)Loan guarantees
Streamlined NRC licensingADVANCE Act reforms
UK Great British NuclearSMR selection process
Canada Innovation ProgramSMR deployment support

Contemporary challenges

  • Construction cost inflation eroded early designs (NuScale cost overruns).
  • NRC licensing timeline still lengthy.
  • Public acceptance variable.
  • Fuel supply for advanced designs (HALEU).
  • Workforce constraints in nuclear industry.
  • Waste management remains unresolved.
  • Financing at scale untested.

HALEU fuel supply

Many advanced SMRs need High Assay Low Enriched Uranium (HALEU) fuel. US supply chain limited. DOE programme scaling HALEU production. Russia was historically major HALEU source but now sanctioned.

Waste

Common trap. SMRs still produce nuclear waste. Some designs claim smaller waste volumes but on per MWh basis may be similar. No fundamental change to the waste storage challenge, which remains politically contested and technically unresolved at the US federal level (Yucca Mountain still not operational).

Cost trajectory

NuScale Utah project cancelled 2023 with cost estimates rising to USD 20,000+ per kW. Actual first of a kind SMR costs likely USD 8,000 to 15,000 per kW. Nth of a kind targeted USD 3,000 to 5,000 per kW. Whether scale up delivers cost reductions remains uncertain.

Microreactors

Sub 10 MW microreactors for remote sites, military bases, mining operations. Radiant Nuclear, Oklo, Westinghouse eVinci, and others developing. Different market than utility scale SMR.

SMR vs fusion

SMR is fission technology, mature and commercial. Fusion is different technology, still research despite recent progress. Do not confuse. See our companion article on hydropower turbines for another distinct technology category.

Realistic deployment timeline

2024
first Chinese SMR grid connection
2029 to 2030
first Western SMRs targeted
Late 2030s
meaningful SMR deployment scale

Where SMRs are going

  • Chinese and Russian deployment continuing.
  • US and UK first commercial units late 2020s.
  • Data centre partnerships growing.
  • Industrial heat applications emerging.
  • Cost trajectory uncertain but potentially competitive.
  • Consolidation of designs likely as market matures.

Frequently asked questions

What is an SMR?

Small Modular Reactor, typically 10 to 300 MW factory built nuclear reactor.

Are SMRs safer?

Designs feature passive safety systems, generally safer than conventional.

Are they cheaper?

Per unit yes; per kW uncertain. Awaiting real world data.

Are they operating anywhere?

Yes in China (ACP100). Western commercial units late 2020s.

What is a microreactor?

Sub 10 MW reactor for very small applications.

Do they still produce waste?

Yes. Waste challenge unchanged.

How long to build?

4 to 7 years targeted; may take longer in reality.

Who funds SMRs?

DOE, IRA credits, private equity, utility investment.

Are data centres buying?

Yes. Big Tech has major nuclear deals.

Where can I read more?

DOE, World Nuclear Association, developer sites.

Summary

Small Modular Reactors could reshape nuclear power through factory construction, passive safety, and flexible siting. China leads with the first grid connected SMR. Western designs targeting late 2020s commercial operation. Growing data centre partnerships and industrial heat applications create demand. Cost trajectory remains uncertain. Waste and public acceptance challenges persist. If cost targets are met, SMRs become a meaningful low carbon option through the 2030s and beyond.

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