Small modular reactor industrial applications and economics

Research and economic analyses regarding small modular reactors (SMRs) highlight their potential for multi-purpose industrial applications. In the United Kingdom, researchers are investigating a tri-generation system that uses a 200 MW thermal power reactor to simultaneously produce electricity, hydrogen fuel, and freshwater via seawater desalination. This integrated approach aims to increase energy utilization by using residual heat from hydrogen production to power desalination.

In the United States, studies suggest that while SMR electricity generation costs remain roughly 36 percent higher than average wholesale prices, the technology may find industrial viability through hydrogen tax credits. Such credits could make approximately 91 gigawatts of SMR capacity profitable by serving process heat and hydrogen production for sectors like steel and ammonia.

However, the expansion of nuclear infrastructure faces potential logistical hurdles. Rising demand for nuclear energy, driven by new reactor construction and AI data center requirements, may lead to a uranium supply gap of up to 46,000 tons annually by 2040, given the long lead times required to bring new mines into production.