SMR and AMR
Key Developments in 2024
2024 saw significant progress in the field of Advanced Modular Reactors (AMR) and Small Modular Reactors (SMR):
- In France:
- Expansion of the France 2030 programme to support 11 AMR and SMR concepts.
- Submission of a permit application to install a Jimmy Energy reactor to provide heat for the Cristal Union sugar cooperative.
- Internationally:
- Agreements between digital giants and SMR/AMR developers (Amazon/X-Energy and Google/Kairos Power) for power supply to hyperscale data centres.
- Advances in Polish projects, including agreements between OSGE and Aecon/AtkinsRéalis/GE Hitachi and regulatory approval for Rolls Royce SMR projects.
Despite these advancements, challenges remain. The abandonment of an initial NuScale project in the US, an audit to prepare for the second phase of France 2030 subsidies, and EDF’s decision to “reassess” the design of its Nuward SMR highlight the hurdles faced by the sector.
Outlook for 2025
In addition to announcing the recipients of the second phase of France 2030 funding, 2025 is expected to see increased commercial activity for SMR/AMR developers in Europe. Several sites or clusters across Europe are exploring SMR/AMR as decarbonisation solutions for medium- and long-term electricity and heat production, or for cogeneration.
Potential users include industrials, district heating networks, and emerging sectors like CCUS through amine regeneration and hydrogen electrolysis.
However, several challenges remain:
- Compatibility of SMR/AMR designs with users’ technical requirements (temperature, pressure, capacity, load-following ability).
- Technical constraints, such as land and water access.
- Competitiveness against other decarbonisation alternatives.
- Alignment with the decarbonisation timelines of interested users.
Large-Scale Nuclear: Progress and Challenges
Key Developments in 2024
The commissioning phase of the Flamanville EPR began in 2024, but the year also underscored intense international competition in the nuclear sector. This was exemplified by the Czech Republic’s decision to select Korean designer KHNP for the construction of two reactors.
Outlook for 2025
In France, the primary focus will be on confirming the costs and development timeline for the EPR2 reactors. EDF has already planned a significant reduction in its preparatory engineering investment budget for 2025.
Future timelines will depend on the government’s ability to finalise financing mechanisms (e.g., zero-interest loans or repayable advances). A decision, originally expected on December 10, 2024, has been delayed and could be influenced by budgetary constraints and a lack of political consensus, given its long-term implications for the state.
E-CUBE will closely monitor developments in these markets, which may not show immediate effects but are poised to have significant impacts on the decarbonisation trajectories of key countries and sectors in the medium term.
E-CUBE has developed strong expertise in Nuclear through its recent projects and the experience of its consultants. We would be delighted to discuss these market perspectives and opportunities with you. Feel free to contact our experts below to arrange a discussion on the topic.
