Decarbonizing Industries with Small Modular Reactors

Global | 21 June 2024
Reading Time : 6 minutes

In the rapidly evolving landscape of energy production and sustainability, numerous industries, including mining, oil and gas, and advanced technology/data, stand at a pivotal juncture. Data centers are power-strapped, and with increasing pressure to reduce carbon emissions, improve operational efficiency, provide large amounts of reliable power, and ensure social and environmental responsibility, businesses seek innovative solutions to tackle these challenges head-on.

One solution gaining traction is the integration of Small Modular Reactors (SMRs) into operations to generate energy in the form of electricity and heat. Nuclear energy is a piece of the clean energy puzzle to becoming carbon-neutral.

The USA, Canada, China, Japan, South Korea, Great Britain, France, and several other European and Asian countries have regulatory policies supporting SMRs as part of the future energy mix. There are clear signals from organizations such as the Intergovernmental Panel on Climate Change (IPCC), the International Atomic Energy Agency (IAEA), and the European Union (EU) that nuclear power has a significant role to play in the fight against climate change.

With a long history of delivering some of the world’s most complex infrastructure projects, WSP has emerged as a leader in supporting the entire lifecycle of nuclear energy on a global stage.

The drive to decarbonize has become a primary objective for industries worldwide. Relying on traditional fossil fuels contributes to greenhouse gas emissions and exposes these industrial operations to the volatility of energy markets and geopolitical risks. SMRs offer a promising alternative by providing a reliable, low-carbon energy source.

Versatility of Small Modular Nuclear Reactors

SMRs are small-scale, factory-made nuclear reactors with modular or standardized designs for an electrical output between 5MW and 300MW. Due to their size and flexibility, components are produced in factories, significantly lowering costs, improving manufacturing quality and consistency, streamlining the permit process, and reducing investment risks. The modules are transported to the final installation site resulting in construction time measured in months rather than years. As SMRs are uniquely scalable, they are well-suited for remote sites with limited access to conventional power infrastructure.

By incorporating SMRs into their energy mix, mining, oil and gas, technology, and manufacturing companies can significantly reduce their carbon footprint while enhancing energy security and reliability. In addition to electric output, the heat output is of significant value for industrial applications. The modular design of SMRs allows for flexible and phased deployment, enabling companies to scale their energy infrastructure according to operational needs, resource availability, and capital available for development.

The versatility of SMRs enables their application not only as a replacement for conventional nuclear but also as a viable alternative to fossil fuels to ensure energy security. In remote communities, there are often no alternatives to using fossil fuel solutions for energy production, usually in the form of diesel generators. This is a costly, CO2-heavy way to produce energy, requiring frequent fuel transport.

For example, more than 200 remote northern communities in Canada rely on diesel generators to supply their electricity and heat throughout the year, with fuel deliveries only being possible during the summer months. Deploying SMRs in such locations would enable the delivery of clean, reliable power year-round without damaging the fragile local ecosystem or exacerbating global warming.

While the potential benefits of SMRs in decarbonizing industry are evident, addressing concerns regarding safety, environmental impact, and public perception is crucial for widespread adoption.

Anthony Ciccone

Canada

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Economic Viability of SMRs

When evaluating the economic viability of SMRs, companies must consider factors such as lifecycle costs, regulatory compliance, financing options, and potential revenue streams.

The smaller size of SMRs allows for incremental deployment, minimizing initial capital requirements and providing flexibility in scaling energy infrastructure according to demand. SMRs can generate revenue through surplus electricity production, enabling companies to diversify their income streams and improve overall financial performance. Additional manufacturing, operations, and construction jobs are created to support energy generation. The economic impact goes beyond electricity generation as the lifecycle helps communities be economically viable.

While the upfront capital investment for SMRs may pose a significant financial commitment, the long-term cost savings and operational benefits can outweigh the upfront expenses. Unlike fossil fuel energy sources, SMRs offer competitive operating costs and reduced fuel consumption, resulting in substantial savings over the reactor's lifespan.

Comprehensive Nuclear Waste Management

Waste management and decommissioning plans are essential for developing or modifying safe and cost-efficient nuclear power systems and are crucial for environmental protection and public safety. Normalized to the power produced, the expected volume of waste from these reactors is estimated to be higher than that from a large-scale reactor. However, innovative core design and materials, plus increased focus on waste minimization to mitigate environmental impact, will lead to a substantial reduction. This includes implementing new technologies that can use spent fuel from other reactors to improve overall efficiency.

Companies must implement comprehensive waste management strategies that adhere to regulatory requirements and international best practices. This includes developing secure storage facilities, containment systems, and monitoring protocols to ensure the safe handling and disposal of nuclear waste.

Innovative approaches, such as reprocessing and recycling spent nuclear fuel, can minimize waste volumes and maximize resource utilization. Additionally, ongoing research into advanced nuclear technologies, such as molten salt reactors and fast reactors that can use reprocessed spent nuclear fuel for power production holds promise for enhancing nuclear waste management and sustainability in the long term.

By investing in robust waste management infrastructure and adopting a proactive approach to nuclear stewardship, companies can mitigate environmental risks and uphold their commitment to sustainable operations.

Our Nuclear Path to Net-Zero

SMRs offer a compelling solution for various industry energy needs, enabling companies to decarbonize operations, enhance energy security, and reduce operational costs.

By engaging stakeholders, prioritizing safety, and implementing comprehensive sustainability strategies, companies can harness the potential of SMRs to drive innovation, improve competitiveness, and achieve long-term success in an increasingly carbon-conscious world.

The most critical role that SMRs can play in the future energy system is the addition of predictable and reliable CO2-neutral baseload energy production, particularly in the parts of the world where it is needed most and can make the most significant difference. In this way, economic growth and the continued fight against global warming can be given the highest chances of success. An abundance of energy and resources will contribute to less conflict and higher prosperity worldwide.

At WSP, we are dedicated to accelerating the path to a safe energy-secure future. We have an opportunity to set new standards for responsible resource extraction and pave the way for a sustainable future powered by nuclear energy.