A wave of startup companies has emerged with innovative designs aimed at reducing the likelihood of nuclear reactor failures. Among these developments are small modular reactors (SMRs), which are designed to be constructed at a centralized facility and transported to installation sites, potentially allowing for significant cost savings. However, there has only been one SMR approved in the United States to date, and the planned deployment of this reactor was scrapped due to the uncompetitive costs of its electricity production.
This uncertainty creates a precarious investment landscape for nuclear power. Add to this the currently low prices for natural gas, wind, and especially solar energy, and the justification for the substantial initial financial outlay required for nuclear projects becomes increasingly difficult, along with the extended timelines for realizing returns on investment.
A New Hope?
The Trump administration aims to alter this challenging climate, although the sincerity of their initiative has been called into question. The executive orders were issued just before a holiday weekend, a common strategy for announcing contentious news with minimal public scrutiny. Furthermore, one of the orders inaccurately categorizes nuclear energy as “dispatchable,” suggesting it can be quickly adjusted to meet demand, which it cannot. The administration also promotes nuclear power as a cleaner alternative to other energy sources, despite also rolling back pollution regulations and endorsing high-emission fossil fuels like coal.
The proposed actions within the new executive orders vary significantly in their plausibility. For instance, the “Reinvigorating the Nuclear Industrial Base” initiative emphasizes the development of technologies to reprocess spent nuclear fuel for reuse, a process that is notably costly and could further undermine the economic competitiveness of nuclear energy. Additionally, the orders seek recommendations for the permanent storage of nuclear waste, a long-standing issue that remains unresolved after decades of debate.
