In the pursuit of supremacy against formidable geopolitical adversaries, the United States government is setting its sights on small nuclear reactors (SMRs). Officials are actively engaging partner countries, urging them to invest in the cutting-edge SMR nuclear technology currently in development by American firms. The primary objective is to seize nuclear market share from Russia, a global industry giant, and counteract the rapid expansion of China’s nuclear-technology sector.
The U.S. envisions that championing this novel technology will not only foster commercial and diplomatic ties but also diminish China’s and Russia’s influence over their neighbors’ energy supply. Beyond this, the Biden administration sees nuclear energy as an avenue to export dependable green energy, capitalizing on the fact that nuclear-power plants, by splitting atoms, do not burn carbon-based fuels that contribute significantly to climate change. In the wake of Russia’s broad 2022 invasion of Ukraine, resulting in a quest for new energy partners by countries like Poland and others in Europe, U.S. officials and industry leaders perceive a potential market opening for American exports to compete with China’s escalating nuclear ambitions.
Recently, at the United Nations climate-control conference in Dubai, officials from 20 countries endorsed a pact led by the U.S., aiming to triple global nuclear-energy output over the next three decades. Simultaneously, legislative measures were passed in the U.S. Congress, spearheaded by the Republican-controlled House of Representatives and Democratic-led Senate, aimed at reducing reliance on Russia’s nuclear fuel. These measures also seek to bolster domestic capacity for uranium enrichment. In a strategic move, the U.S. inked an agreement in November to facilitate the sale of nuclear-energy technology and materials to the Philippines, a Southeast Asian nation reconsidering nuclear energy after the Fukushima disaster in Japan over a dozen years ago.
While China dominates the wind and solar power sectors, U.S. officials believe that nuclear energy is an area where the U.S. can compete effectively, showcasing its array of newer reactor types and fuels. The U.S. strategic plan involves signing long-term agreements spanning 50 years or more, offering U.S. technology to former energy partners of Moscow and rapidly developing countries in Southeast Asia concerned about overreliance on Chinese and Russian energy sources.
Ted Jones, the head of national security and international programs at the Nuclear Energy Institute, emphasizes the importance of being the supplier, supporting the energy security of allies and partners. This, he believes, prevents them from facing situations akin to Europe’s dependence on Russian gas and nuclear energy.
At the center of the U.S. campaign lies an unproven technology, the small modular reactor (SMR). Generating approximately one-third of the energy of conventional nuclear reactors, SMRs can be prefabricated and shipped to the installation site. With anticipated cost advantages and the ability to meet growing energy demands, SMRs present a promising prospect, according to the International Atomic Energy Agency.
U.S. officials assert their collaboration with SMR developers, leveraging entities like the Export-Import Bank and the U.S. International Development Finance Corp. to secure overseas orders, reduce costs, and establish an order book for this nascent technology. Projections by the U.S. Nuclear Energy Agency estimate that the global SMR market could reach 21 gigawatts of power by 2035, equivalent to powering two billion LED lightbulbs.
Geoffrey Pyatt, the State Department’s assistant secretary of energy resources, underscores the importance of the United States maintaining leadership in transitioning from the laboratory to grid deployment and commercial viability. He emphasizes that it is about establishing a very long-term strategic partnership.
For nuclear-energy exports to become a potent tool of foreign policy, U.S. companies must demonstrate their ability to deliver smaller reactors for export within stipulated timelines and budgets. Overcoming historical challenges faced by larger nuclear-power plants in the West, this endeavor presents a significant hurdle. Notably, while the U.S. is yet to construct an SMR, Kairos Power has recently secured construction approval for a demonstration project in Tennessee, focusing on the domestic market. In contrast, NuScale Power, a major U.S. player, canceled an SMR project in Idaho due to insufficient commitments from utilities in the Mountain West region.