Tuesday, February 7, 2023

Advanced Nuclear: An Overview

 

Small Modular Reactors, Power Ship Molten Salt Reactors, and Micro-Reactors: New Nuclear Models Emerging for Mass Deployment in the 2030’s – But Are They Really Affordable?

     Many of us believe it is simply fanciful wishful thinking that wind, solar, and storage can reliably and affordably replace coal and natural gas for grid power. However, there is one source of energy that matches the reliability of fossil generation and that is of course, nuclear. Affordability is a problem with nuclear, especially where safety and regulatory costs are much higher than they need to be. Now, new models are gaining steam that can bypass some of the safety issues and take advantage of manufacturing techniques like modularity. Still, there will be a need for regulatory reforms to get these new designs approved and deployed. As proven with reactors deployed around the world for many decades, nuclear energy is safe. Nuclear has been in operation for decades with only a few disasters that were due to completely fixable human errors and poor reactor designs (Chernobyl) or errors in where they were deployed (Fukushima). Making nuclear cheaper involves cutting unnecessary red tape, perhaps adding more incentives for low emissions intensity baseload or firm power that is reliable and not intermittent, and developing economies of scope and economies of scale, supply chains, and support industries for these new modular models, including domestic (non-Russian) sources of nuclear fuel.

     Concerns and challenges of nuclear beyond safety, cost, and time include dependence on Russia for the more enriched fuel used in 40% of the world’s reactors and almost a quarter of US reactors. This is why the US has not sanctioned Russia’s Rosatom. That is concerning as we know Russia can be unreliable and weaponize energy. New uranium enrichment efforts are underway in the US but will take time. Development of domestic uranium enrichment capacity and complementary nuclear fuel development industries, including mining and milling, is a matter of national and energy security. Another method is to recycle existing nuclear waste. Since nuclear deployment has stagnated in the US over the last 4 decades there will be a need to train more people to do the work if there will be more deployments. The US still makes 20% of its electricity with nuclear and several plants slated to close (often for perceived safety and even ideological reasons) have been given extensions to keep operating.    

 

Small Modular Reactors

 

        The U.S. Nuclear Regulatory Commission (NRC) finally, after six years, issued its final rule to certify NuScale Energy’s small modular reactor (SMR) design. This is the first SMR design to be certified in the US and the 7th nuclear design overall to be certified. NuScale’s design is an advanced light-water reactor delivered in 50MW modules. NuScale’s power plant design can accommodate up to 12 of the factory-built reactors for up to 600MW of generating capacity. This plant is about one third the size of large reactors. The reactors are passively cooled using convection and gravity, so they require no water, power, or operator actions for cooling. Currently, NuScale is seeking to uprate each module to produce 77MW (924MW for 12). NuScale has worked with the DOE since 2014 to develop these SMRs. A six-module demo project has been up and running at DOE’s Idaho National Laboratory. The first commercial module is expected to be operational by 2029 with full plant operation in 2030. NuScale has 19 signed and active domestic and international agreements to deploy SMR plants in 12 different countries, including Poland, Romania, the Czech Republic, and Jordan, as well as the US. It should be noted that the certification process alone was cumbersome and expensive. According to a Huff Post article referenced below: “The application process alone took NuScale six years, 12,000 pages and more than half a billion dollars. In a lengthy 2021 report, the Nuclear Innovation Alliance, a trade group, called on Congress to reform licensing fees and provide more federal financing for new reactors.”

     Another SMR design has been selected for the first commercial contract in North America, a collaboration between GE Hitachi Nuclear Energy, Ontario Power Generation, SNC-Lavalin and Aecon Group. GE Hitachi will design the reactor, a Darlington SMR BWRX-300 reactor that will generate up to 300 MW of power. This SMR is expected to be completed by the 4th quarter of 2028 and will likely be the first commercial SMR operational in North America. GE Hitachi notes that “the BWRX-300 is designed to reduce construction and operating costs below other nuclear power generation technologies. It uses a combination of fuel available in operating reactors and does not require high-assay low-enriched uranium. Its design is based on reactor technology already licensed and proven components.” Tennessee Valley Authority is working on preliminary licensing for a possible BWRX-300 deployment in Tennessee. They are working with Ontario Power Generation to get licensing from the U.S. NRC and the Canadian Nuclear Safety Commission.

     Holtec International makes a light water SMR of 160MW where the reactor is buried underground. The life of the reactor is expected to be 80-100 years. Such a long life could also be a selling point when comparing to solar, wind, and even fossil generation, which will not last that long. Holtec’s choice of 160MW as a size is due to its ability to replace a standard boiler in a coal plant, thus repurposing the plant to run on nuclear instead of coal. The SMR-160 can deliver steam at any desired pressure thus utilizing the exiting turbogenerator of the coal plant. Holtec notes that “this approach preserves the jobs associated with the operation and maintenance of the existing plant’s turbogenerator and downstream systems, while creating new, high-paying jobs associated with the SMR-160 nuclear power plant.” They have applied for a patent for this configuration. This is quite an interesting development and can be useful where premature decommissioning of coal plants is occurring or slated to occur due to decarbonization desires or mandates. It can also help the plant remain profitable and not become a stranded asset. India is interested in this technology. The UK has a plan to deploy 32 of the Holtec SMR-160 units for a total output of 5.1 GW. Construction is expected to begin in 2028.  

     Terra Power, backed by Bill Gates, builds a sodium-cooled fast reactor, an SMR that requires high-assay low-enriched uranium (HALEU) for fuel. Their Natrium design features a sodium-cooled fast reactor combined with molten salt energy storage. The reactor output is 345MW and with charged storage added it can produce 500MW for up to 5.5 hours. This gives the plant the ability to respond to a generation fluctuation due to a high penetration of solar and wind on the local grid. Terra Power is currently preparing to begin construction in Spring 2023 of the non-nuclear parts of a demonstration Natrium plant in Wyoming at the site of a coal plant making it the only coal-to-nuclear project being developed in the world, likely the first of many. They do not expect to make power commercially till about 2030.

     X-Energy is developing a high temperature gas reactor that is gas-cooled. The high temperature gas used is helium. They plan to utilize their own developed proprietary fuel: tri-structural isotropic (TRISO) particle fuel. This is a HALEU fuel that they plan to fabricate at their TRISO-X facility at Oak Ridge National Laboratory that has served as a demonstration facility since 2016 of the Company’s patented TRISO fabrication processes. TRISO-X has requested a 40-year license and the NRC presented its proposed 30-month review timeline at the meeting in Oak Ridge on January 25, 2023.

 

Nuclear Power Barges and Reactor Manufacturing at Shipyards and Refineries

 

     Samsung Heavy Industries and compact molten salt reactor (CMSR) developer Seaborg announced a joint venture to develop the CMSR Power Barge, a reactor or bank of reactors on a floating barge with from two to eight 100 MW reactors, or up to 800 MW output. The Seaborg reactors use spent light water reactor fuel with Thorium added as a catalyst. They noted that the Power Barge could be used as a thermal electricity source for industry, a dedicated power source for electrolyzers to produce green hydrogen or ammonia, and/or for saltwater desalinization. The Power Barges are expected to have a lifetime of 24 years. Robert Bryce points out in a Substack article on the power Barge announcement that much of the world’s population lives close to an ocean and can benefit from seaborn nuclear. He also notes: “Shipyards have the production capacity – including their own steel mills and armies of welders – to churn out reactor vessels at the scale needed …” They could do it faster than other suppliers. In a December 2022 article in the Breakthrough Journal – The Future of Nuclear at Sea - the authors elaborate on the suitability of shipyards building nuclear reactors:

 

Shipyards build ships, of course. But they are more than that; in reality, they are manufacturing centers for all manner of extremely large, complex, and highly regulated items, such as oil drilling platforms, cruise ships, and other marine vessels. In addition to large things, shipyards specialize in constructions that are designed for extremely challenging environments and operations, such as submarines or ice breakers. Modern shipyards already have the professionals and the supply chains in place to deliver safe, reliable, and ready-to-go products at impressively high levels of quality control and assurance.”

 

“There’s no real reason that they couldn’t turn that expertise toward building modular reactors and assemble them into barges and other offshore platforms that could operate as offshore power plants—perhaps even offshore power plants linked directly to hydrogen and synthetic fuel production.”

 

They also note that building reactors at refineries, which also fabricate large metal things, for hydrogen production (refineries use much of the world’s hydrogen currently) is a good idea. The basic idea is to build ‘Gigafactories’ at shipyards and refineries. Globally, there are 280 shipyards. Most are in South Korea, Japan, and China. The authors also point out several reasons why Finland is an ideal place to get ‘shipyard nuclear’ started. It is an interesting and fascinating article – referenced below.  

 

Micro-Reactors

 

     One company already fabricating prototype reactors at a manufacturing facility that makes equipment for refineries is startup Last Energy. These reactors are 20MW air-cooled single loop pressurized water reactors (PWRs), an existing reactor type already on the market, just re-packaged into a different and smaller form. The 75-ton reactor pressure vessels will be buried underground. They plan to deploy 10 of the reactors (200 MW total) in Poland beginning in 2025. Each 20MW reactor is expected to cost $100 million for construction. Last Energy will operate and maintain them. They are taking on the risk of cost overruns. Long-term power purchase contracts are the basis for borrowing the $1 billion needed for Polish project, in line with wind and solar financing models. The Last Energy model involves each reactor module being replaced every six years with a new module pre-loaded with fuel. The old module stays in the ground where its waste is secured within the multiple redundant cooling mechanisms. It cools for years until it is time to decommission. It is a trade-off meant to make the process a little easier on balance.

     The Nuclear Energy Institute defined micro-reactors in a 2019 report as those between 1 and 10 MW in size. Thus, Last Energy’s rector is too big to fit their definition and might be better defined as an SMR. A company called Oklo applied for licensing a 1.5MW non-light water reactor, fast reactor design that uses HALEU fuel from spent fuel nuclear fuel (SNF) which is currently stored as nuclear waste. They’re application in 2020 was denied by the NRC due to security and safety concerns. They re-launched their licensing process in September 2022 and hope to re-apply to the NRC soon.

 

Recycling Nuclear Waste to Reduce Dependence on Russia

 

     As mentioned above, one way to add uranium enrichment capacity in the U.S. is to recycle existing nuclear waste. This has the added advantages of reducing overall nuclear waste and avoiding more mining and processing of uranium ore. It would have been better to build a U.S. nuclear fuel recycling plant years ago, but political headwinds were against it after nuclear fell out of favor.

     Fast reactors like those of Oklo, X-Energy, and Terra Power, are able to deal with impurities that may be present in spent nuclear fuel. The fuel, known as high-assay low-enriched uranium (HALEU) provides better energy density than other nuclear fuels and can cost less. It also enables longer core life and more of the fuel burns up so there is less waste. However, HALEU can only be acquired in the U.S. by down-blending (diluting?) U.S. DOE high-enriched uranium. It was estimated in 2020 that it would take a minimum of seven years to develop fuel cycle infrastructure for HALEU. Oklo’s was the first pilot project to use that down-blended high-enriched uranium. However, as demand builds for HALEU, SNF recycling will have to be ramped up.

     Both Canadian mining company Cameco and Oklo want to begin enriching SNF to make HALEU. Cameco entered into a strategic partnership in late 2022 to acquire Westinghouse, a long-established American nuclear company that has manufactured for about half of global nuclear plants and also is a major nuclear fuels supplier. Oklo has a goal to recycle and enrich the waste from their own reactors ultimately making recycling a less costly option than mining, processing, and enriching new uranium ore supplies. They also hope to establish an alternative to Russia’s closed-loop fuel services that appeal to countries that want nuclear power but do not want to deal with the waste. Russia’s close-loop system can offer the ability to design, build, and even operate a nuclear plant as well as take away the waste. The U.S. currently buys 3 times more Uranium from Russia than it produces so ramping up domestic uranium mining and buying more from countries like Canada is also being pursued. According to the EIA in a 2021 report the U.S. only domestically produces 5% of the uranium it uses. The rest is imported: 35% from Kazakhstan, 15% from Canada, 14% from Australia, 14% from Russia, 7% from Namibia, and 10% from other countries combined. Oklo is aiming for a model where fuel recycling and sales (potentially to competitors like Terra Power) makes up 40% of their business and reactors make up 60%.

 

Affordability

 

     Detractors to nuclear energy, including advanced and SMR designs, point to construction costs and regulatory time. They say it can’t be done fast enough or cheap enough to make a dent in emissions reduction, compared to wind, solar, and storage, including long duration storage like pumped hydro. They do have a point if the past is considered. The Unit 3 reactor at the Vogtle nuclear plant in Georgia began construction in 2009. It is expected to finally be online in April of 2023. That is 14 years later. A plant in Finland took 17 years for the same process and though online in 2022 is still having problems. The Vogtle project was nearly 2.5 times over budget. It was expected to cost $14 billion and ended up costing $34 billion. The South Carolina nuclear project collaboration between Westinghouse and Toshiba was scrapped in 2017, with both companies facing huge losses and Westinghouse filing for bankruptcy. Detractors also cite the high construction costs of advanced nuclear, but these are costs for prototypes, pilots, and the first commercial projects of immature technologies without well-established manufacturing and supply chains. Construction and deployment costs will come way down as these technologies mature. Of course, that will take time, and climate alarmists always argue that we don’t have time.   

     Nuclear has additional safety considerations that renewables and storage don’t have to worry about. If it is deemed cheaper and faster than nuclear to overbuild wind and solar, add battery and other energy storage, including pumped hydro, then why not just do it instead? I think the answer will end up being a combo. If we can hold off on climate alarmism a bit and plan our energy future smartly, we will likely find we need an increase in all those technologies along with decarbonized and efficient natural gas designs that incorporate carbon capture, partial electrification of peak load natural gas plants, blue and green hydrogen, and molten salt, lithium batteries, vanadium flow batteries, and other energy storage technologies. Charging batteries and other energy storage and making green hydrogen will require even more dedicated wind and solar. But for each technology, costs will have to be forecasted and watched closely to avoid overruns and it will need to be determined whether the cost to commercialize them at scale is reasonable compared to alternatives. It will be an all-of-the-above strategy that will still include coal where it is cheap, available, and needed for energy access in developing countries. It will not be strictly natural gas-to-nuclear as Robert Bryce favors, but wind, solar, storage, and upgraded and expanded power grids will also be a big part of the picture. Other technologies like geothermal will play a part as well. Perhaps deeper into the future, the deeper and hotter parts of the planet can be accessed in supercritical geothermal, but that day won’t be soon.

     As mentioned, one thing that can make advanced nuclear attractive in the long term is plant life. If typical plants could last 60-100 years with just routine maintenance, they could outcompete wind and solar in the long term, which last a third or half as long before they need replaced. Wind and solar advocates would likely counter that argument with the immediacy of climate change mitigation that they say wind and solar can offer. That too is debatable.

     Some think that building nuclear plants smaller is one key to the affordability problem, at least on the front end. Large construction projects, not only nuclear ones, have been beset with cost overruns in recent years, often due to poor construction management. Projects involving less construction do not have those problems and modularization, which involves making bulk components in controlled factory settings, can help keep costs down. The large nuclear projects in the U.S. that were mothballed or slow and over cost have also been hampered by the fact that no large nuclear plants have been built for decades so there were new learning curves. Over-regulation has not helped either. Theoretically, small designs are easier to manage and regulate. Modular factory processes are also easier to standardize so that building the next ones of a bank of reactors can benefit from the building of the ones before. This is how it has been done successfully for nuclear submarines and aircraft carriers.  

     Another issue nuclear has faced, especially with just a few large projects, is supply chains. For the most part, there are none. With smaller modularized projects those supply chains can be developed much easier and much faster, especially as new orders arrive to keep them running and growing. Upfront spending and de-risking before engineering, procurement, and construction (EPC) contracts are awarded, are being done more now, after lessons learned from Vogtle. Jigar Shah, head of the DOE’s Loan Program Office noted that they give loans with preferences given to those who have acquired long-term off-take agreements and EPC contractors that believe they can build the plant at cost. They will not lend to a supply chain vendor unless that vendor has many orders ready to go.  

     Solving the world’s energy conundrums is neither easy nor easily agreed upon. Commodity prices and forecasts are always changing and subject to geopolitical risks and glitches. New technologies often experience unexpected problems and costs. Materials, minerals, metals, and labor costs fluctuate. While new tech often makes resource costs drop, resources may become less concentrated, or of a lower grade after high-grade deposits are depleted, which makes costs rise. Thus, the cost picture for each energy resource is always changing. Regulatory red tape seems to affect just about every resource, but is very high with nuclear, mainly due to safety concerns around radioactivity and potential weapons proliferation. Virtually every power generation resource has environmental impacts that must be considered. Weighing all this stuff in comparisons can be daunting. Wind and solar have high upfront costs compared to natural gas which is pay-as-you-go with fuel purchases and use spread over the life of the plants. This offers a net present value advantage. Nuclear has even higher upfront costs than wind and solar but is both a comparable low carbon generation source and a much more reliable one that can supply baseload needs which wind and solar cannot do. It has fuel costs but they are much lower than fossil fuel plants. Thus, with all the buzz about the energy trilemma of security, sustainability, and affordability, it is affordability that is most difficult with nuclear. However, that could and should become much less of a problem as these models mature.

 




Some Basic Data of Selected Advanced Nuclear Designs, Cost Projections, Timing, and Comparisons


References:

More people are talking about nuclear energy as a solution, says Breakthrough Institute’s Nordhaus. CNBC. December 27, 2022. More people are talking about nuclear energy as a solution, says Breakthrough Institute's Nordhaus (cnbc.com)

US Redoubles Efforts to End Dependence on Russian Nuclear Fuel. Jonathan Tirone. Bloomberg. September 29, 2022. US Redoubles Efforts to End Dependence on Russian Nuclear Fuel - Bloomberg

NRC Certifies First U.S. Small Modular Reactor Design. Energy.gov. Office of Nuclear Energy. January 20, 2023. NRC Certifies First U.S. Small Modular Reactor Design | Department of Energy

NuScale Small Modular Reactor. Factsheet. smr-fact-sheet.pdf (nuscalepower.com)

GE Hitachi and 3 partners announce first commercial contract for grid-scale SMR in North America. Stephen Singer. Utility Dive. January 30, 2023. GE Hitachi and 3 partners announce first commercial contract for grid-scale SMR in North America | Utility Dive

Holtec’s SMR-160 Nuclear Reactor Slated to Repurpose Coal-Burning Power Plants into Clean Energy Generators. Holtec International. Press Release, January 10, 2023. Holtec’s SMR-160 Nuclear Reactor Slated to Repurpose Coal-Burning Power Plants into Clean Energy Generators - Holtec International

Holtec Britain Applies to Join UK Government Process for Generic Design Assessment of US-Origin SMR-160 Nuclear Reactor in the United Kingdom. Holtec International. Press Release. December 19, 2022. Holtec Britain Applies to Join UK Government Process for Generic Design Assessment of US-Origin SMR-160 Nuclear Reactor in the United Kingdom - Holtec International

Demonstrating the Natrium Reactor and Integrated Energy System: Factsheet. Terra Power. TP_2022_Natrium_Technology.pdf (terrapower.com)

NRC Begins Public Engagement for TRISO-X Advanced Nuclear Fuel Facility License Application. X-Energy. Press Release. February 1, 2023. NRC Begins Public Engagement for TRISO-X Advanced Nuclear Fuel Facility License Application — X-energy

X-energy is Developing a Pebble Bed Reactor That They Say Can't Melt Down. DOE. Office of Nuclear Energy. January 5, 2021. X-energy is Developing a Pebble Bed Reactor That They Say Can't Melt Down | Department of Energy

Samsung Heavy moves ahead with floating nuclear power barge. Mariska Buitendijk. SWZ Maritime. January 5, 2023. Samsung Heavy moves ahead with floating nuclear power barge (swzmaritime.nl)

Why Shipyards May Be The Future of Fission. Robert Bryce. Substack. January 20, 2023. Why Shipyards May Be The Future of Fission (substack.com)

The Future of Nuclear at Sea. Kirsty Gogan, Eric Ingersoll, and Rauli Partinen. The Breakthrough Institute. Breakthrough Journal No. 18, Fall 2022. Dec. 26, 2022. The Future of Nuclear at Sea | The Breakthrough Institute

Inside The Audacious Plan To Use 10,000 Nuclear Microreactors To Wean The World Off Coal. Christopher Helman. Forbes. February 3, 2023. Inside The Audacious Plan To Use 10,000 Nuclear Microreactors To Wean The World Off Coal (forbes.com)

Oklo Relaunches NRC Licensing Process for Nuclear Microreactor. Sonal Patel. Power Magazine. September 20, 2022. Oklo Relaunches NRC Licensing Process for Nuclear Microreactor (powermag.com)

Exclusive: Why Oklo’s Demonstration of HALEU Could Be Groundbreaking for New Nuclear. Sonal Patel. Power Magazine. February 20, 2020. Exclusive: Why Oklo’s Demonstration of HALEU Could Be Groundbreaking for New Nuclear (powermag.com)

Inside The Race To Tap A Controversial Source Of Carbon-Free Energy: Nuclear Waste. Alexander C. Kaufman. Huff Post. February 6, 2023. Inside The Race To Tap A Controversial Source Of Carbon-Free Energy: Nuclear Waste (msn.com)

The United States imports most of the uranium it uses as fuel. Energy Information Administration. July 7, 2022. Where our uranium comes from - U.S. Energy Information Administration (EIA)

Nuclear Power? Have No Fear – Our Clean Energy Future is Radioactive. Jack Holmes. Esquire. January 25, 2023. Nuclear Power? Have No Fear—Our Clean Energy Future Is Radioactive. (msn.com)

‘Advanced’ Nuclear Reactors: No Climate Cure. Stephanie Cooke. Energy intelligence. February 1, 2023. 'Advanced' Nuclear Reactors: No Climate Cure | Energy Intelligence

Interview: DOE's Jigar Shah on Lending to Nuclear Projects. Jessica Sondgeroth. Energy Intelligence. January 27, 2023. Interview: DOE's Jigar Shah on Lending to Nuclear Projects | Energy Intelligence

 

 

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