Technological Pathways for Small Modular Nuclear Reactors
- Mar 17
- 2 min read
One of the great hopes for a decarbonized electricity grid is the development and launch of immense numbers of small modular reactors (SMRs). For grid operators, nuclear power is a clean baseload power source, but legacy nuclear technology adds massive increments of power that are difficult to ramp up and down according to changes in demand. SMRs on the other hand can be built, and dispatch power, in small increments. Critically, they require a smaller investment for each additional deployment compared to legacy systems that require immense capital for each new generator.
SMRs also can be paired with batteries to modulate grid dispatching, improving the resilience and stability of the grid. The smaller scale also reduces NIMBY objections because an SMR is more easily sited adjacent to high demand users like data centers, mitigating the electrical transmission pathways that are typically required. They also offer black-start capability for grid restoration after outages, meaning they can come back online without power input from external sources.
New applications for SMRs in the US are expected to emerge in stages. Due to technological readiness and urgency to meet AI-driven demand, the first users are the hyperscalers. Meta, Google, and Amazon have all signed agreements for SMR power with deployments of TerraPower and Kairos reactors.
Shortly thereafter, SMRs for industrial process heat and cogeneration at manufacturing sites are expected, specifically, X-energy’s Xe-100 at Dow Chemical’s Texas plant. This will supply steam and heat directly to chemical facilities while exporting excess electricity. For more information, watch ORGEL’s interview with X-Energy from December.
The US military is targeting operational SMRs by 2030 for resilient, transportable power. In the following decade, SMRs may be used for hydrogen production by providing high-temperature heat or electricity for electrolysis and thermochemical processes, often co-located with industrial users. Further in the future, applications include marine propulsion, district heating that will displace natural gas, and desalination, fundamentally altering society’s relation to freshwater resources.
Specific challenges in this new market include licensing and fuel supply, delaying momentum and rollouts at scale until the early 2030s. When series manufacturing and predictable construction pathways are established, levelized costs are expected to fall below $60/MWh, making SMRs competitive with renewables plus storage. Once deployment speeds collapse and predictable deployment avenues have solidified, it’s expected that SMRs will bring a new wave of power generation to meet demand.
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