Plug Pulled on First US Small Modular Reactor Project

Utah Associated Municipal Power Systems (UAMPS) and small modular reactor (SMR) developer NuScale mutually announced the termination of the Carbon Free Power Project in November, ending the first U.S. deployment of SMRs. The announcement cited the lack of subscription to continue forward; however, rising costs also took a toll. NuScale is the only U.S. developer to have its SMR design approved by the Nuclear Regulatory Commission.

In 2020, the Carbon Free Power Project, wholly owned by UAMPS and its 46 members in Utah, California, Idaho, Nevada, New Mexico and Wyoming, received a $1.4 billion Department of Energy (DOE) award to reduce risks associated with the expected cost of the project. 

“Despite the DOE award, higher interest rates and inflation put pressure on the project,” CFC Energy Industry Analyst Alisha Pinto said. “NuScale faced cost overruns due to more expensive raw materials. For example, prices increased for fabricated structured steel and carbon steel pipes between 20% and 100%. This increased the price of power by roughly 50% in January 2023—from $55 a megawatt-hour to $89 a megawatt-hour.”

Initially, NuScale committed to provide 924 MW of energy from 12 modular reactors to UAMPS. In 2020, it was scaled down to 460 MW and six reactors as UAMPS members dropped out. For the project to be economically viable, NuScale needed to achieve an 80% subscription rate by February 2024. However, in March of this year, the project had a subscription of 25% with UAMPS as its main subscriber. The Carbon Free Power project could not move forward without sufficient power purchasers.  

NuScale is developing projects in Romania and South Korea. Another U.S. SMR project is still underway through the partnership of Tennessee Valley Authority (TVA), Ontario Power Generation and Poland-based Synthos Green Energy to invest in GE Hitachi SMR technology for projects in Tennessee, Canada and Poland. 

“Taking a phased approach, TVA is supposed to begin its activities with the design and licensing of the SMR at a 935-acre site at Clinch River,” Pinto said. “TVA already holds an early site permit from the Nuclear Regulatory Commission and will develop the plant design, the license application and project plan. Meanwhile, the Darlington New Nuclear project in Clarington, Ontario, is expected to be constructed by 2028 and will be the first SMR in North America.”