DECARBONISING INDUSTRY | SMRS & ADVANCED REACTORS
Decarbonising industry with SMRs
A new study concludes that the small modular reactor (SMR) market
could support the decarbonisation of at least 11 energy intensive industrial sectors that make up the majority of industrial energy demand in North America and Europe. It also reveals how that can be made to happen.
A NEW ANALYSIS SETS OUT how the full potential of small modular reactor (SMR) technology can be unlocked to address energy needs in the industrial sector. The report concludes that the market could thus represent a $0.5–1.5tn investment opportunity. The study, entitled ‘A new nuclear world: how small modular reactors can power industry’, has been produced by LucidCatalyst on behalf of Urenco and with support from World Nuclear Association. It analysed the potential for SMRs to serve the energy needs of 11 key industrial sectors across North America and Europe which collectively represent more than 80% of total industrial energy demand. Concluding that SMRs are a strong technical match for the energy needs of these industries, the study notes that SMRs could supply up to approximately 15,000 TWh or 2,200 GW of their demand which is expected to reach 17,000 TWh by 2050. The top five SMR accessible markets, representing more
Below: Amazon is backing the Cascade Advanced Energy Facility, one of the first small modular nuclear reactor facilities in the United States. Source: Amazon
than 75% of the 700 GW opportunity, are synthetic aviation fuels (203 GW), coal plant repowering (110 GW), synthetic maritime fuels (90 GW), data centres (75 GW), and chemicals (55 GW). Sectors such as food & beverage (43 GW), iron & steel (33 GW), upstream oil & gas (33 GW), and district energy (33 GW) also represent sizable opportunities, with district energy being particularly relevant in Europe. Data centres, chemicals, and coal repowering are expected
to drive near-term demand, with synthetic aviation fuels representing the largest long-term opportunity. Without SMRs, these industrial sectors may face constrained growth or be forced to default to carbon-intensive alternatives due to the lack of clean, reliable energy.
Despite this large potential market, only 7 GW would be deployed by 2050 under current deployment trends. This is because the current nuclear delivery model, with custom-built projects, unpredictable costs, and decade-long timelines, cannot meet industrial business requirements. Industrial energy customers, says the study, need fixed-price contracts, rapid deployment, guaranteed delivery schedules, and proven operational performance. Even so, the report does point to several significant drivers that are opening up the industrial market to SMRs.
Forces shaping industrial energy risks The report considers that industrial energy has transformed from a future concern to an immediate challenge. It states
that three forces are converging: ● Energy security and extreme price volatility: The 2022–2023 European energy disruption exposed industrial operations’ vulnerability to extreme price volatility. Natural gas prices spiked from €20/MWh to over €200/MWh in some instances, an increase that rendered entire industries uneconomic overnight. BASF, the chemical giant that had operated continuously for over a century, permanently closed ammonia production facilities. Aluminium smelters across Europe, which require continuous power to prevent metal from solidifying in production lines, faced impossible choices and many never reopened. In total, European industrial production dropped by 12–21% in energy-intensive sectors, with much of this production permanently relocated to regions with
26 | January 2026 |
www.neimagazine.com
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