EU Launches Alliance to Develop Advanced Nuclear Reactors

The European Commission has opened applications for membership in a new alliance to accelerate the development of small modular reactors (SMRs), following moves by the United Kingdom and the United States to commercially scale up the advanced nuclear generation technology.

The alliance aims to come up with a working model by the 2030s. “The Alliance targets a wide range of SMR stakeholders including vendors, utilities, specialized nuclear companies, financial institutions, research organizations, training centers and civil society organizations”, the Commission said in a news release. “The key objective of the Alliance is to reinforce the nuclear supply chain in Europe by leveraging its manufacturing and innovation capacity and strengthening EU cooperation”.

“In combination with other sources of clean energy, SMRs will play a role in achieving the clean energy transition and boosting energy security in Europe in the coming years by helping to decarbonize industry, produce low-carbon hydrogen and provide heat to industry and urban districts”, it explained.

“Compared to the larger, conventional nuclear power plants, SMRs have several advantages - such as shorter construction time schedules, enhanced safety features and a sounder appeal to private investors thanks to their lower initial costs and shorter development timelines”.

Earlier the UK government announced an investment of GBP 300 million ($377 million) for the domestic production of so-called high-assay low-enriched uranium (HALEU), challenging Russia’s status as the only commercial manufacturer of the fuel for SMRs.

“The UK will become the first country in Europe to launch a high-tech HALEU nuclear fuel program, strengthening supply for new nuclear projects and driving Putin further out of global energy markets”, the UK Department of Energy Security and Net Zero (DESNZ) said in a press release January 7.

The DESNZ said GBP 10 million ($12.76 million) has also been allotted to develop sites and promote skills development for the production of other “advanced nuclear fuels”.

These offers are part of efforts to achieve the UK’s target of 24 gigawatts of nuclear power by 2050, or a quarter of UK electricity needs, the department said.

The International Atomic Energy Agency says HALEU is only produced in the U.S. and Russia but only the latter makes the fuel at a commercial scale. SMRs need HALEU, which contains five to 20 percent of uranium-235, beyond the five percent level that powers most of today’s nuclear power plants, according to the United Nations nuclear watchdog.

The UK move was followed by an announcement by the US Department of Energy offering contracts worth up to $500 million in total for HALEU production. “Currently, HALEU is not commercially available from U.S.-based suppliers, and boosting domestic supply could spur the development and deployment of advanced reactors in the United States”, the DOE noted in a media statement January 9 announcing the funding offer.

In the European Union announcement, Internal Market Commissioner Thierry Breton said, “In a context of increasing business competition on SMRs at global level, Europe is promptly responding, capitalizing on its strong nuclear competence, innovation, and manufacturing capability”.

Energy Commissioner Kadri Simson said, “Today's launch of the EU Industrial Alliance on Small Modular Reactors will bring together the technology side and energy companies to make the most of safe and versatile new nuclear technologies”.

“They can contribute on our decarbonization pathway to complement renewables, and provide baseload energy production for deep electrification, reliable source of heat for industries and urban districts, as well as for low-carbon hydrogen production”, Simson added.

“Further, the Alliance will facilitate the deployment of the first reactors by the next decade in the countries that choose to do so, in full respect of the highest standards of nuclear safety and environmental sustainability”.

Europe’s biggest economy Germany, though, has already abandoned nuclear energy. The nation on April 15, 2023, shut down its three remaining nuclear power plants. And a December 2023 briefing paper by the German Federal Office for the Safety of Nuclear Waste Management warned SMRs were costlier to build than big nuclear power plants and could still pose radioactive danger.

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