The Role of Policy and Module Manufacturing Learning in Industrial Decarbonization by Small Modular Reactors

Author:

Vanatta Max1ORCID,Stewart William2ORCID,Craig Michael1ORCID

Affiliation:

1. University of Michigan

2. Boston Atomics, LLC.

Abstract

Abstract Small nuclear modular reactors (SMRs) offer a unique solution to the challenge of decarbonizing mid- and high-temperature industrial processes. We develop deployment pathways for four SMR designs serving industrial heat processes at 925 facilities across the United States under diverse policy and factory and onsite learning conditions. We find that widespread SMR deployment in industry requires natural gas prices above $6/MMBtu or aggressive carbon taxes. At natural gas prices of $6 to $10/MMBtu, 5 to 51 GWt of SMRs could be economically deployed by 2050, reducing annual emissions by up to 59 million mt CO2e. Large, lower temperature SMRs are deployed at lower natural gas prices, while microreactors and higher temperature designs become dominant at higher prices. Policy levers like subsidies are not effective at incentivizing sustainable deployment, but aggressive carbon taxes and investment tax credits provide effective support for SMR success. Large-scale SMR deployment hinges on factory, not onsite, learning.

Publisher

Research Square Platform LLC

Reference35 articles.

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3. Friedmann, S. J., Fan, Z. & Tang, K. E. LOW-CARBON HEAT SOLUTIONS FOR HEAVY INDUSTRY: SOURCES, OPTIONS, AND COSTS TODAY. https://www.energypolicy.columbia.edu/sites/default/files/file-uploads/LowCarbonHeat-CGEP_Report_100219-2_0.pdf (2019).

4. Mcmillan, C. et al. Generation and Use of Thermal Energy in the U.S. Industrial Sector and Opportunities to Reduce its Carbon Emissions. www.nrel.gov/publications. (2016).

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