As part of the Obama Administration’s “All-of-the-Above" strategy, this week the U.S. Department of Energy announced an award to support a new project to design, license and help commercialize small modular reactors (SMR) in the United States. The project supported by the award will be led by Babcock & Wilcox (B&W) in partnership with the Tennessee Valley Authority and Bechtel. Click here:
The Obama administration’s strategy is a breath of fresh air for the nuclear industry which has most recently been competing against low gas prices. It’s also a step in the right direction not only for the U.S. but for the world's energy programs. This opens up an option for other countries that have limited natural resources and growing populations, such as China and India.
The administration is showing good foresight to fund nuclear when gas prices continue to stay low. It’s too easy to jump on board with the “fad of the day” and take your eyes off other energy production options.
The jobs to be created by this award are far reaching as other companies and manufacturers focus on furthering small modular reactor efficiency, operations and design.
There are still challenges to be resolved to make the SMR concept a valid option in the energy arena:
- Construction costs need to stay competitive with large nuclear and gas plants.
- The value proposition of the SMRs is a shorter construction time. Getting these plants built in less than three years will be critical for success.
- O&M costs need to be kept low as well with staffing and overhead costs optimized to match the lower megawatt output.
This announcement is exciting for the nuclear industry as it supports the Energy Department’s professed position that it is, “Committed to supporting research and development that will advance efficient, safe and cost-effective small modular reactor technologies.”
The fostering of this innovative technology adds another arrow in the quiver of the U.S. as it aims for energy independence.