Re SMR's and cost issues mentioned above, Eck just brought this to my attention, good to have all info whether positive or negative, this could be a big deal and not necessarily bullish.
Extract from today's stonkhead couldn't post link for obvious reasons;
Small modular reactors — they’re the technology the nuclear power industry hopes will mainstream the controversial energy sector and prove it can expand without the massive scale of traditional nuclear energy.
But the emerging market has been dealt a blow just as enthusiasm for a nuclear renaissance hits a new level of intensity.
It came in the form of a decision from the Utah Associated Municipal Power Systems and advanced SMR developer NuScale to dump a plan called the “Carbon Free Power Project”.
That would have been the first SMR rolled out in the States, six minireactors due to be constructed in Idaho Falls from 2026. But NuScale and UAMPS deemed it unviable after subscriptions fell well below the level required to underwrite the project’s construction.
It came despite strong political support, including from the Biden Administration, amid long delays and cost overruns for conventional plants.
Wood Mackenzie vice-chair of Americas Ed Crooks said it was a serious setback for the SMR industry.
“But while the end of the Carbon Free Power Project was not entirely unexpected, it is still a serious setback for nuclear power in the US, and for hopes of reducing greenhouse gas emissions globally,” he said in a note.
“It is increasingly likely that no new SMRs will be built in the US or Europe in the 2020s.”
According to Crooks the levelised cost of energy for the power to be delivered by the dumped project was over double that of utility-scale solar and materially higher than gas turbines.
“Estimates published in January set a target levelised cost of energy (LCOE) for the plant of US$89 per megawatt hour, up from an earlier estimate of US$58/MWh, including the benefit of tax credits and federal government support,” he wrote.
“But even that revised target relied on some favourable assumptions. Hitting that US$89/MWh target depended on cutting US$700 million from the Carbon Free Power Project’s estimated cost of US$5.1 billion.
“Without that, the LCOE would be US$105/MWh, and there were clear risks that it could rise higher.
“Wood Mackenzie calculated last year that the average LCOE from a combined-cycle gas turbine power plant in the US was US$58/MWh, while utility-scale solar was US$43/MWh.
“That makes the Carbon Free Power Project’s cost estimates seem expensive, even before any additional overruns.”
