# Nuclear Fuel Challenges Facing Small Modular Reactors
Written on
Chapter 1: Overview of SMR Fuel Shortages
Small Modular Reactors (SMRs) are encountering a significant hurdle: a lack of nuclear fuel.
TerraPower, the company behind the SMR project in Kemmerer, Wyoming, may experience a delay of up to two years due to insufficient fuel supplies, as reported by CNBC. Currently, the only source of High-Assay Low-Enriched Uranium (HALEU)—a critical fuel component for TerraPower's Natrium SMR—is located in Russia.
Chris Levesque, President and CEO of TerraPower, acknowledged in a press release that "Russia's invasion of Ukraine rendered the sole commercial supply of HALEU unfeasible for TerraPower and other companies in our sector." The initial strategy was to rely on Russian HALEU until an American alternative became available.
Section 1.1: The Impacts of Delayed Development
With the current situation, TerraPower must postpone the activation of its SMR until alternative HALEU sources are established outside of Russia. The company aims to develop a 345 megawatt (345 million watt) SMR at a previously coal-operated power plant site near Kemmerer.
This venture is backed by Microsoft co-founder Bill Gates, with the Kemmerer SMR set to supply electricity to PacifiCorp's Rocky Mountain Power division, which services customers in Utah, Idaho, and Wyoming. They plan to initiate construction on the Kemmerer SMR in early 2023.
Can Small Modular Reactors Save Nuclear Power?
This video discusses the challenges and potential of Small Modular Reactors in the current energy landscape.
Section 1.2: Future Plans for SMRs
PacifiCorp, part of Berkshire Hathaway Energy, which is owned by Warren Buffett, is collaborating with TerraPower to explore the feasibility of establishing up to five SMRs to enhance PacifiCorp's energy grid by 2035, as indicated in a press release.
Chapter 2: TerraPower's Strategic Moves
To address the HALEU shortage, TerraPower is partnering with Global Nuclear Fuel Americas (a General Electric subsidiary) to develop a domestic supply.
They plan to construct the Natrium Fuel Facility near Wilmington, Delaware, which will cost around $200 million. This facility is intended to produce HALEU for both TerraPower and GE-Hitachi Nuclear Energy, with funding support from the U.S. Department of Energy.
Why Small Modular Nuclear Reactors SMRs Are Not a Climate Fix
This video explores the limitations of SMRs in addressing climate issues and energy needs.
Section 2.1: The Economics of Nuclear Power
One of the primary benefits of nuclear energy is that reactors do not require as much fuel as fossil-fuel facilities. Consequently, SMRs can operate without the expensive infrastructure necessary for fuel transport, such as railroads for coal or pipelines for natural gas. This operational efficiency could shield utility customers from the high fuel costs associated with fossil fuels, while also significantly reducing greenhouse gas emissions.
Subsection 2.1.1: Understanding HALEU
HALEU, or High-Assay Low-Enriched Uranium, is essential for SMRs because they are smaller than conventional nuclear reactors and thus require more energy to operate. The higher the enrichment of the nuclear fuel, the longer its lifespan in a reactor, leading to increased power output with less fuel.
While most U.S. reactors utilize Low-Enriched Uranium (LEU), which contains 3% to 5% U-235, HALEU contains between 10% and 20% U-235, providing enhanced energy efficiency. Additionally, HALEU is more challenging to use for nuclear weapon production.
Section 2.2: Potential Domestic Sources of HALEU
There are prospective U.S. sources for HALEU, as noted by Forbes. For instance, the Idaho National Laboratory under the Department of Energy can produce HALEU for demonstration projects. Other potential producers include BWX Technologies and Centrus Energy in Piketon, Ohio, which aims to start HALEU production.
In Europe, Orano Conversion & Enrichment is another possible HALEU supplier based in Hauts-de-Seine, France. Thus, while the HALEU shortage presents immediate challenges, it is possible that solutions will emerge by the time the SMRs are ready for operation, mitigating the impact of geopolitical events like the invasion of Ukraine on the nuclear energy sector.