Study sets out path to deployment of 700 GW of capacity by 2050
The small modular reactor (SMR) market could support the decarbonisation of at least 11 industrial sectors that make up the majority of industrial energy demand by 2050 in North America and Europe with a potential market of 700 GW by 2050, a study has found.
The study, ‘A new nuclear world: how small modular reactors can power industry’, was produced by consultancy LucidCatalyst for multinational uranium enrichment company Urenco.
The aim of the study is to further industry understanding of the “evolving” market for industrial decarbonisation, Urenco said.
The study sets out how the full potential of SMRs for generating industrial energy can be unlocked, representing a $0.5-$1.5tn investment opportunity.
Energy-intensive industrial sectors are facing mounting pressure to secure reliable, cost-competitive energy whilst meeting decarbonisation commitments and SMRs are seen as one solution.
According to the study, SMRs could reach 700 GW of capacity by 2050 under a “transformation” scenario involving factory style mass manufacturing approaches to building SMRs. This sizable opportunity represents nearly double the current global nuclear capacity, and would expand nuclear capacity beyond the projected goal of tripling conventional deployment.
But the study warns that stronger policy and financing support is needed to achieve economic viability.
“Policymakers can identify national SMR market opportunities, signal strategic priorities, and design targeted policies to address critical development bottlenecks,” the study says.
Five industries represent more than 75% of the 700 GW Deployment opportunity. They are: synthetic fuels for aviation and maritime, the repowering of coal sites, data centres and chemicals.
Other sectors such as food and beverage (43 GW), iron and steel (33 GW) and district energy (33 GW) also represent sizeable opportunities, with district energy demand being more prevalent in Europe. Upstream oil and gas is a more prevalent opportunity in North America.
With improvements to current construction methods alone, 120 GW of capacity could still be achieved by 2050.
In the Western world, more than 60% of projects in the SMR pipeline are in North America, with the remainder in Europe.
High-profile US projects include TerraPower’s construction of a Natrium SMR at a former coal site in Wyoming and plans to deploy SMRs to provide power for chemical giant Dow’s Seadrift plant in Texas. Amazon has unveiled plans for an SMR facility in the state of Washington, partly to power its data centres.
Notably, around 80% of SMR projects are being driven by non-traditional customers, primarily large industrial energy users, indicating a significant shift in the nuclear energy customer base.
The leading sectors driving energy demand are data centres, the chemical industry and coal repowering, followed by smaller growth in district energy, food and beverage, military applications, and oil and gas refining.
