Nuclear Resurgence Spurs Permitting, Supply Chain Issues

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Written by Paul Wiseman for IIR News Intelligence (Sugar Land, Texas)

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Summary

The recent upsurge in interest in nuclear to supply urgently needed power has encouraged manufacturers, but has also highlighted supply chain delays.

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Surprising Resurgence of Nuclear

"We went from thinking about 'Where does nuclear fit?' to 'How do we get it done as soon as possible?'"

That answer by Kenny Nash to the question, "What's been your biggest surprise about nuclear power in recent times?" was echoed by his three co-panelists at Energy Central's "Atoms Reimagined: Scaling Next-Gen Nuclear" webinar July 21.

Indeed, nuclear--particularly small modular reactors (SMRs) and the restarting/extending the life of existing facilities--increasingly is becoming part of the "all hands on deck" mentality as the power sector struggles to keep up with exploding demand from data centers, EVs, and elsewhere.

Industrial Info Resources is tracking 50 SMR capital-spending projects in the U.S., with a total investment value (TIV) of more than $130 billion. Industrial Info Resources offers more information on these developments in its Global Market Intelligence (GMI) Power Project Database, where readers can find details--including construction schedules, investment values and necessary equipment--in a detailed list of project reports.

Nash is technical leader for GE Vernova Hitachi Nuclear Energy. Other panelists included: Mark Gake, Nuclear Technology Portfolio Manager for investment firm Black & Veatch; Ravi Penmetsa of the U.S. Nuclear Regulatory Commission; and Rounette Nader with Duke Energy.

Nader, whose employer is active in the region of the Carolinas, added that there is bipartisan support both legislatively and popularly for nuclear energy in those locations.

By the Numbers

• 50: Number of SMR projects tracked by Industrial Info Resources
• 4: Number of SMRs currently operating in the world

Hurry Up and Wait

While allowing that no single energy source will solve today's grid challenges, panelists declared nuclear as the best option for longevity (many current facilities have been in operation for decades, something that is not possible for wind or solar units) and reliability (more than 90% "on" rates).

But there are downsides to nuclear, said Nader: "Nuclear offers reliability and long-term stability, but that upfront cost and execution risk is what's got people hesitant to be the first mover. SMRs are not being commercially deployed, but there's nothing about these SMRs that we're worried about from a technology standpoint. We've operated nuclear power plants in this country now for over 50 years, and these really aren't that different. They're just smaller."

Moderator Mike Smith, with KLN Group, a global logistics and supply chain company, pointed out that "the timeline from application to generating power, is about 10 years, assuming things happen on time." He was specifically speaking of the effects of that wait time on hyperscalers who are contracted for SMR builders for behind the meter power.

Gake believes that the delay factor only illustrates the need to start now. "We can't wait to just let things happen. We have to be intentional about it and start moving, start working in the supply chain with utilities."

Throughout its history, nuclear energy has been subject to long permitting procedures and construction timelines, Penmetsa said. With the complexity of engineering and other aspects, many applications must be retooled and resubmitted before approval.

And the upsurge in applications has created backlogs for Penmetsa's agency: "It's not that we had long lead time to plan and staff ourselves up to get ready. So, we had to quickly adjust, readjust, and then be ready for all these applications coming out."

Supply chain issues, which have been in the news for almost every industry in recent months, also create delays for the makers.

Nash noted that for GE Vernova Hitachi 20 years ago, supply chains were not an issue. But today, using often the same specifications in previous years, "we find that the supplier base has shrunk dramatically. Or we find that if we can identify a supplier, they have a lot of restrictions that maybe weren't there in the past."

In the Meantime

While waiting through the delays, intermediate sources are also in the mix, primarily natural gas-fired plants. Smith told of a C-Suite executive client who told him recently that her board was all in on that idea.

"They're realizing that their very aggressive renewable energy plans need a little dose of reality and having natural gas in the mix," including natural gas as a bridge technology, Smith said.

For Gake, "all of the above" includes all nuclear options. "Part of that is also restarts. Restarts have become an important topic over the last two to three years as we look at the ability to bring back existing generation assets." Extensions of operating life have also been important.

Specifically, he referred to California's Diablo Canyon. On December 19, 2023, the California Public Utilities Commission voted to allow Diablo Canyon to extend operations through 2030 instead of retiring in 2025.

There, Gake said the state realized its need for that because "when San Onofre shut down in Southern California, the state emissions went up 10%. And it was very difficult to replace that power." According to Industrial Info Resources data, San Onofre closed on June 7, 2013.

Readers can learn more from detailed profiles of the Diablo Canyon and San Onofre plants.

Panelists noted that it may be 2033 before a commercial SMR is completed, and that none are in service anywhere in the world. For more information on the four units that do exist, see July 16, 2026, article - U.S. Domestic Uranium Mining Grows to Supply Energy Security and the SMR Future.

Key Takeaways

• Nuclear--traditional and SMR--is fast becoming part of the clean energy mix.
• Builders and regulators are struggling to keep up with hiring and supply chains.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).