๐จ๐ผโ๐ป๐๐ผ๐ฑ๐ฒ๐ฟ๐ ๐ ๐ฒ๐ฒ๐ ๐๐๐ผ๐บ๐ โ๏ธ
- Oct 25, 2024
- 2 min read
With the second season of ๐๐ข๐ญ๐ญ๐ฐ๐ถ๐ตย on the way, Silicon Valley seems to be taking its fresh interest in nuclear energy to the real world. Tech giants like Amazon, Google, and Microsoft have all announced new nuclear projects aimed at powering their data centers. And whatโs their go-to choice? Small Modular Reactors (SMRs). The first commercial SMRs are (optimistically) scheduled for 2030, true to the Valleyโs enthusiasm for disruption. So, letโs take a look at whatโs ๐ข๐ค๐ต๐ถ๐ข๐ญ๐ญ๐บย happening with SMRs right now.
Today, we have over ๐ญ๐ฎ๐ฌย ๐ฑ๐ถ๐ณ๐ณ๐ฒ๐ฟ๐ฒ๐ป๐ย ๐ฆ๐ ๐ฅย ๐ฝ๐ฟ๐ผ๐ท๐ฒ๐ฐ๐๐ย globally, with 5 under construction and around 50 in various stages of development, according to the latest data from the World Nuclear Association. Three years ago, there were barely 70 projects; back in 2018, there were only 40. This growth shows the pace of interest, but not necessarily progress. Most SMRs remain in the design phase or are stuck in licensing with no operational reference plant or contractual commitment to build. ย
The Russian SMR RITM-200 and Chinaโs ACP100 are among the first to break ground for commercial use. Meanwhile, U.S.-based NuScale, once seen as a front-runner in light-water SMR tech, had to delay its project after failing to hit commercial targets for its site. Initial estimates for NuScaleโs CAPEX were pegged at $๐ญ,๐ฎ๐ฌ๐ฌ/๐ธ๐ชย but are now closer to $๐ฑ,๐ญ๐ฌ๐ฌ/๐ธ๐ช. These budget jumps highlight the common challenge of nuclear projects: overruns in both time and cost.
Will these new SMR projects avoid the all-too-familiar nuclear project hurdles? So far, no evidence suggests they will. But, Silicon Valleyโs deep pockets may be willing to tolerate a doubled (or even tripled) budget and a few โadditionalโ years. On the upside, this interest might finally mean a cash flow boost for nuclear startups.ย
Is the SMR hype here to stay? I hope it stays long enough for SMR startups to get their much-needed funding. But there are better and quicker ways to make money in the nuclear industry.ย
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