As the world grapples with the urgent need for low-carbon energy solutions, nuclear power is emerging as a frontrunner in the race to meet growing electricity demands. However, the industry faces considerable hurdles, including protracted regulatory approval processes, a lack of investment, and cost overruns that have deterred utilities from pursuing new nuclear construction. In this context, Small Modular Reactors (SMRs) are gaining traction as a viable alternative, promising to streamline the path to cleaner energy.
Juliann Edwards, the Chief Development Officer of The Nuclear Company, emphasizes the importance of revitalizing domestic manufacturing capabilities within the nuclear sector. “We’ve got to onshore a lot of the capabilities that we’ve lost,” she asserts, highlighting a critical need for self-sufficiency in energy infrastructure as the U.S. looks to bolster its nuclear capabilities.
SMRs, which typically generate 300 megawatts or less, stand apart from traditional nuclear reactors due to their modular design. This allows for significant portions of the reactors to be pre-manufactured in factories, reducing the complexity and time required for construction. Todd Abrajano, CEO of the U.S. Nuclear Industry Council, notes that these modular systems can expedite regulatory approvals and construction timelines: “They bring more regulatory certainty and an ability to get through that process much more quickly.” This flexibility and reduced footprint make SMRs an attractive option for sites that cannot accommodate larger plants.
According to the U.S. Department of Energy (DOE), the compact size of SMRs allows for a lower capital investment and enables placement in locations unsuitable for larger facilities. The DOE has backed the development of light water-cooled SMRs, which are currently undergoing licensing reviews. Industry experts predict that these reactors could be operational by the late 2020s to early 2030s.
Globally, interest in SMRs is surging, with over 80 designs in various stages of development across 19 countries, including the United States, Canada, the United Kingdom, Japan, and South Korea. A report from Natural Resources Canada forecasts that the global SMR market could exceed $150 billion by 2040. Emerging market analytics indicate that the SMR sector, valued at $4.13 billion in 2023, is on track to grow at an annual rate of approximately 14%, reaching $10.23 billion by 2030.
In a notable development, tech giants are increasingly looking to nuclear energy for reliable power sources. Microsoft has signed a contract with Constellation Energy to restart a reactor at the historic Three Mile Island facility, while other major companies like Amazon and Google are exploring SMRs to power their data centers. This trend signals a shift in the market, where private enterprises are seeking dedicated, consistent energy supplies independent of the larger grid.
The military sector also sees tremendous potential in SMRs and microreactors. These technologies promise resilient energy solutions for military installations, capable of withstanding threats from extreme weather, cyberattacks, and other disruptions to traditional energy networks. As noted in a White House fact sheet, “Small modular nuclear reactors and microreactors can provide defense installations resilient energy for several years.” The adaptability of these reactors makes them suitable not only for large bases but also for smaller, forward operating sites.
Despite the optimism surrounding SMRs, the nuclear industry remains cautious about regulatory hurdles. However, recent bipartisan legislative efforts, such as the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act, aim to streamline the approval processes at the Nuclear Regulatory Commission (NRC). The average time for NRC approvals has historically been around five years, but with new legislation, this could shrink to 18 to 24 months.
Looking at recent projects, Plant Vogtle in Georgia, which includes two traditional reactors, began operations in 2023 but faced significant delays and budget overruns—an example of the challenges that have plagued the nuclear industry. In contrast, a modular reactor by Kairos Power in Oak Ridge, Tennessee, received regulatory approval in just over two years, showcasing the potential for faster deployment of SMRs.
However, the U.S. nuclear industry faces a daunting challenge: the need for a skilled workforce and manufacturing resources. Edwards points out that much of the manufacturing capacity for critical components now resides outside the U.S., raising concerns about the ability to produce SMRs at scale. “We still have a lot of manufacturing as it relates to work done at SpaceX, and I would say we still produce a lot in terms of engine manufacturing,” she states, but emphasizes that the nuclear sector requires a concerted effort to rebuild its infrastructure.
Educational initiatives are being implemented to address this talent gap. Universities such as the Massachusetts Institute of Technology and the University of Michigan are leading in nuclear engineering, while organizations like the American Nuclear Society are introducing K–12 programs to inspire the next generation of nuclear professionals. By equipping young minds with knowledge about nuclear energy, the industry hopes to foster a robust pipeline of skilled workers.
In summary, as the nuclear power industry navigates its way through regulatory challenges and seeks to modernize its manufacturing capabilities, Small Modular Reactors represent a promising avenue for innovation and expansion. With robust market forecasts and increasing interest from private enterprises and military applications, SMRs could play a pivotal role in the transition to a sustainable, low-carbon energy future. The path ahead may be fraught with obstacles, but the commitment to onshore capabilities and invest in human talent signals a determined effort to reclaim America’s leadership in nuclear energy.
