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Microreactor Economic Performance & Market Analysis

This presentation was prepared for the Microreactor Program Stakeholders Workshop on May 12-13, 2021. It supports understanding the market and economic potential for microreactors in the U.S. and internationally by providing: a techno-economic basis for support to industrial microreactor deployment and operation; uncovering emerging market opportunities, informing R&D opportunities, and integrating the research performed by the INL [Boise State/Energy Policy Institute], and the U Alaska Anchorage, U Wisconsin-Madison, and Nuclear Alternatives Project in Puerto Rico.

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS↗

Microreactor Applications in U.S. Markets: Evaluation of State-Level Legal, Regulatory, Economic and Technology Implications

This report provides an evaluation of state-level legal, regulatory, economic and technology implications for microreactor applications in U.S. markets. The initial focus is on Alaska (AK) and Wyoming (WY) energy markets serving location-specific energy needs for electricity and heat. A state-by-state evaluation of current carbon/carbon-related policies and nuclear policies is conducted to assess broader market applicability in states undergoing energy transitions.

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS↗

An Economics-by-Design Approach Applied to a Heat Pipe Microreactor Concept

Microreactors present a potential paradigm shift in the nuclear industry. Emphasis thus far has been on large-scale multi-billion-dollar projects that cater solely to grid electricity market. These projects can be challenging to finance and execute. On the other hand, microreactors are intended to target a wide variety of smaller niche markets and are expected to be factory-fabricated and more readily deployable. While diseconomies of scale for microreactors may tend to raise their costs per energy output (MWh) relative to large nuclear plants, offsetting gains can be expected from standardization, simplification, passive safety, lower radionuclide inventories, factory fabrication, fast installation, and low financing costs. To adequately assess these contributions, designers should have a different perspective on cost drivers than for large nuclear plants and can utilize novel approaches for systematic cost reduction. To account for these important aspects of microreactors, this report proposes an economics-by-design approach that places economic considerations at the center of the design process. The methodology builds on existing frameworks such as design-to-cost and value engineering, expanding them to new markets (beyond the grid), new attributes (beyond costs alone), and introducing the approach at earlier points in the design cycle. Design parameters and technical specifications are systematically evaluated until costs meet market entry points, while also providing the high-priority performance attributes of the particular use case. Determining first-order estimates for different components early in the process enables designers to focus R&D efforts on the biggest overall cost contributors and components with the most cost uncertainty. The analysis is always guided by market needs and threshold prices. In addition to microreactors, the approach is expected to be useful for other classes of nuclear reactors as well. The analysis was applied to a concept found in the open literature (the Design A heat-pipe reactor). A comprehensive bottom-up estimate was generated by leveraging a new microreactor-specific code of accounts and a range of cost equations. The initial estimate for levelized cost of electricity (LCOE) unsurprisingly exceeded market ranges since the use case had prioritized technological readiness over economic considerations in design choices. An alternate concept was then proposed, with various assumptions/targets made to reduce the largest cost contributors. Changes in the neutron spectrum, the power output, and building structures were found to make even the first-of-a-kind of this modified concept competitive with diesel generation in some remote communities. Learning rate (LR) assumptions indicated cost reductions achieved from sequential unit deployments could expand the range of competitiveness to include additional markets as deployments proceed.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

Assessment of Technoeconomic Opportunities in Automation for Nuclear Microreactors

Achieving full decarbonization of all economic sectors remains a challenge, especially in niche markets. For example, remote communities and industrial or mining activities detached from the main electric grid heavily rely on fossil fuels, similar to urban and industrial microgrids with combined heat and power needs. A combination of renewables and energy storage is often not suitable due to cost, reliability, intermittency, and large storage requirements. Small nuclear reactors with a flexible purpose could serve these applications. Microreactors (MR) are a class of reactors that are compact, factory manufactured, transportable, and self-regulating. Typically, they generate much less power than their large reactor counterparts. The main advantages of microreactors include the versatile nature of the energy produced, the reliability of supply, and freedom from having to transport and store large quantities of fuels on-site, coupled with the absence of dependence on an electrical grid. A strong business case is needed to move from the microreactor prototype to the commercialization phase. In fact, fossil fuels are still relatively inexpensive, and in the near term, carbon credits will be available to virtually compensate for emissions. For microreactors, one of the main costs in operation and maintenance (O&M) is their staffing levels. In this study, we investigate how to optimize the number (and thus the cost) of workers, moving from a traditional, fully manned, on-site personnel approach to an unmanned, remote personnel approach. We examine four different staffing models that can be implemented as the technology matures and evolves. We estimate the staffing needs of each model and build a business case to justify the substitution of on-site personnel with adequate technologies. To do so, we propose a cost model to quantify potential cost reductions from automating O&M activities. The model accounts for both the reduction in cost derived from the reduced number of full-time-equivalent (FTE) employees and the increase in cost derived from the need to buy new control hardware as needed. Applying the cost model that we created to different scenarios, an on-site O&M cost reduction exceeding 80% can be expected. Additionally, we found that it is more impactful to focus on automating routine O&M tasks rather than attempting to automate transient management (shutdowns, restarts, monitoring condition deviations). In fact, transients typically account for less than 1% of the total FTE time spent on the reactors.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Microreactor-liquid metal battery system in energy markets: An evaluation of potential costs, technology, and policy impacts

Microreactors represent an emerging innovation in the nuclear industry; yet have been overshadowed by their high capital costs. With the Inflation Reduction Act of 2022 (IRA), new opportunities have emerged to improve the economics of microreactor systems. This work examines liquid metal batteries (LMB) as a value-adding technology as part of microreactor-LMB systems within three U.S. electricity markets: ERCOT, PJM, and MISO. Our investigation considers key uncertainties: the cost of microreactors, the performance of LMBs, and the eligible tax credit levels. To this end, we use a dispatch optimization to trace not only the changes in system economics but also to provide a granular picture of energy delivery within the systems. We find that even with favorable costs for microreactors, significant regional variations in the project sizing and returns exist across the markets. Our heuristic method identifies their non-electric application potentials beyond electricity and technical requirements to maximize returns. The results suggest that 12–39 % of reactor heat could be cost-effectively diverted to produce more valuable by-products in U.S. markets. Including the impacts of tax credits, we establish the outcomes of each provision with varying rates. Coupling an LMB to a microreactor consistently improves the net present value of a microreactor compared to its standalone operation. In conclusion, for reasonable assumed conditions, we quantify a heterogeneous impact of round-trip efficiency (RTE) and extended LMB service life across the three markets—a one-year extension in LMB service life is roughly equivalent to a 2.11 % improvement in RTE for ERCOT, 1.16 % for PJM, and 1.04 % for MISO.

22 - GENERAL STUDIES OF NUCLEAR REACTORS↗

Uncovering hidden market opportunities for advanced nuclear reactors

Decarbonizing to meet aggressive climate change mitigation targets requires energy transition within all sectors. In the industrial sector, global emissions will need to decrease by 65–90% by 2050 to avert warming greater than 1.5°C (Pörtner et al., 2022). Recent U.S. laws, including the Inflation Reduction Act (IRA), Bipartisan Infrastructure Law (BIL), Defense Production Act, Creating Helpful Incentives to Produce Semiconductors (or CHIPS), state programs, and other recent laws, have clean energy requirements and provide financial incentives to accelerate the use of clean energy technologies in the industrial sector. These new laws include supporting mechanisms with direct financial support for nuclear power (e.g., advanced reactor development and hydrogen production). However, advanced nuclear could also gain these financial benefits by coupling with low-carbon industrial projects. For example, microreactors could supply low-carbon energy to producers of critical metals that (1) are eligible to receive investment and production tax credits and favorable loans, and (2) the low-carbon product could gain preference in emerging markets for green products.

11 NUCLEAR FUEL CYCLE AND FUEL MATERIALS↗

Development, Testing, and Validation of Fabry-Pérot Cavity Acoustic Sensors for Microreactor Applications

Nuclear microreactors are a unique reactor design which may allow for the nuclear energy industry to tap into unconventional markets, and their modularity presents some advantages over larger, conventional reactor designs. For nuclear microreactors to be economically viable, on-line structural health monitoring may be necessary to reduce operation and maintenance costs with lower power production. Optical fiber sensors, and specifically optical Fabry-Pérot cavities (FPCs), may present the opportunity to monitor vibrational frequencies of microreactor components during operation, enabling identification of the location and severity of potential damage. In this work, FPCs were designed and fabricated with materials which may be able to survive in the extremely harsh environment of nuclear microreactors. The FPCs were bonded to metal test specimens to monitor their vibrational frequencies, along with a reference piezoelectric accelerometer. Euler-Bernoulli theory was used to calculate the fundamental modes and mode-shapes to compare with experimentally measured frequency spectra. The peak frequencies detected with the FPC and piezoelectric accelerometer, and theoretical modes, all agreed well for the first four fundamental modes (within 5%). Furthermore, when the FPC and accelerometer were co-located on the test specimen, their peak frequencies all agreed within 1%.

Birri, Tony↗

Microreactor Optimization Using Simulation And Economics (mouse)

Microreactor Optimization Using Simulation and Economics (MOUSE) is a tool that integrates both nuclear microreactor design and reactor economics to provide comprehensive evaluations and optimizations. This tool enables stakeholders to explore the interplay between technical and economic variables, guiding them towards effective and competitive microreactor solutions. For the reactor core simulations, MOUSE leverages the OpenMC Monte Carlo Particle Transport Code to perform detailed core simulations for various microreactor designs. The included OpenMC models are 2D core designs of a Liquid Metal Thermal Microreactor (LMTR), a Gas-Cooled TRISO-Fueled Microreactor (GCMR), and a Heat Pipe Microreactor. Beyond core design, MOUSE includes simplified calculations for: - Calculating the masses of heat exchangers within the system. - Mechanical power of pumps. - Estimating the area occupied by various buildings within the nuclear plant. For the economic analysis, MOUSE provides detailed bottom-up cost estimates, encompassing a wide range of costs including preconstruction costs, direct costs, indirect costs, training costs, financial costs, operation & maintenance (O&M) costs, and fuel costs. These cost estimations are developed using data from the MARVEL project and additional literature sources, enabling the calculation of total capital costs and levelized cost of energy for both first-of-a-kind and nth-of-a-kind microreactors. MOUSE also enables analysis of the cost drivers and competitiveness in the electricity market. MOUSE allows users to modify a wide array of technical and economic parameters to evaluate different scenarios and their impacts. Examples of these parameters include: Fuels, coolants, or reflector materials Enrichment levels Control drum materials and geometry Fuel pin geometry and materials Moderator pin geometry and materials Reactor core and reflector dimensions Packing factor for the TRISO particles Nuclear reactor power and reactor burnup Number of sensors Shielding thickness Reactor vessel and guard vessel dimensions Operational staff requirements Number of emergency shutdowns Levelization period Interest rate Construction duration Since MOUSE is powered by the WATTS toolkit, it supports optimization studies, parametric analyses, and uncertainty calculations/propagation. The optimization techniques enable users to identify optimal design and economic configurations. The parametric analysis tools allow users to explore the sensitivity of various parameters, while uncertainty propagation helps quantify the impact of uncertainties on overall performance and cost. User Interface and Workflow: Currently, MOUSE is a command-line-based tool. Users can input various reactor design or economic parameters, modify the designs, run simulations, and visualize results through comprehensive data visualization and reporting capabilities. The typical workflow involves setting up the reactor model, defining economic parameters, running simulations, and analyzing the results to make informed decisions. By combining advanced design calculations with detailed economic modeling, MOUSE provides a robust framework for optimizing nuclear microreactor technologies, enhancing their competitiveness, and guiding stakeholders towards innovative and cost-effective solutions.

Hanna, Botros [Idaho National Laboratory (INL), Id↗

Optimizing Hydride Stability in U-ZrH x Nuclear Fuel: The “Goldilocks Radius”

Nuclear-powered microreactors show great promise for opening new nuclear energy markets due to the flexibility offered by their rapid/streamlined in-factory fabrication, transportability, and self-regulating nature. The economic benefits of any commercialized nuclear reactor, however, rely on the system’s ability to produce large amounts of heat and efficiently convert that heat into electrical power reliably for long periods of time. Uranium-zirconium hydride (U-ZrH x ) is currently being considered for compact reactor designs because it is a well-known nuclear fuel system that is self-moderating, but this fuel, which has historically been used for research reactors, has not been optimized for commercial power production. Here, this paper analyzes the hydride stability of standard 304 stainless steel–clad U-ZrH x fuel under commercially relevant conditions. Fuel element design parameters, including physical dimensions, as-fabricated hydrogen content, burnup, peak fuel temperature, temperature gradient, operational fuel cycle duration, and volumetric heat generation rate, are discussed with a focus on hydrogen distribution and phase stability within the fuel element. Hydride stability declines more rapidly as the coolant temperature, burnup, and fuel cycle duration increase. Using a fuel-cladding gap material with heat transfer properties superior to air, such as helium or sodium, is essential to prolonging fuel hydride stability. The fuel’s physical dimensions are also important. At very small fuel diameters, the H/Zr ratio in the fuel meat decreases too rapidly due to the hydrogen content’s dependence on fuel meat volume. Conversely, the fuel meat temperature and temperature gradient exacerbate hydrogen loss at very large fuel diameters. We find that the most important parameter to consider when optimizing the hydride stability of U-ZrH x fuel is the relationship between the fuel meat radius and the power density in the fuel. A simple equation is empirically determined that relates the “Goldilocks radius,” that is, the fuel radius for which the H/Zr ratio is most stable, to the power density in the fuel.

11 NUCLEAR FUEL CYCLE AND FUEL MATERIALS↗

Mass Production of Microreactors: A Look at Potential Scenarios and Fabrication Facility Requirements

Microreactors may be able to be cost competitive in niche markets, but they are likely to be much more expensive than small modular reactors or large reactors in terms of levelized cost. The vision of microreactors being catered to larger markets relies heavily on their ability to be mass produced and cut costs. Since commercial nuclear reactors have not been mass produced before it is challenging to estimate what kind of manufacturing facilities will be needed, what they will cost, and how factory considerations influence the unit cost of microreactors. This summary attempts to imagine the various possible production layouts of microreactors and identify the different possible manufacturing facilities (factories) that might be required. Regulatory and economic considerations for these layouts and factories are then listed.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

Technoeconomic Evaluation of Microreactor Using Detailed Bottom-up Estimate (Rev.1)

Microreactors are a novel class of nuclear reactors that are expected to be factory produced, transportable, and self-regulating. They are expected to be several orders of magnitude smaller in size than traditional reactors (with power outputs in the 1–20 MWe range typically). They are primarily envisaged to target niche, remote markets that are difficult to access and where energy costs are high. There has been a scarcity of technoeconomic assessment for these types of reactors due to the scarcity of designs without proprietary restraints (e.g., those that include balance of plants and building layouts) and cost estimates. The primary objective of this report was to develop a transparent, detailed, bottom-up cost estimate for a microreactor. While there is a high degree of uncertainty associated with the projected costs, this work provides a foundation that can built upon and improved to better model the economics of microreactors. The Microreactor Applications Research, Validation, and Evaluation (MARVEL) microreactor was selected for this analysis. This Department of Energy–sponsored demonstration was chosen because (1) its final design was recently completed and (2) a detailed class-3 cost-and-schedule estimation was conducted for it. This provided a strong technical basis for further analysis.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

Demonstration of ACCERT Software for Nuclear Power Plant Techno-Economics

In the past few years, there has been a renewed interest in the deployment of nuclear power for decarbonizing the electricity grid as well as a range of industrial applications. As the demonstrations of advanced nuclear power plants start to begin, there will likely be a further increase in this interest. As nuclear is being considered as a part of the energy mix, understanding the cost of nuclear energy becomes increasingly important for all stakeholders including advanced reactor vendors (for making design decisions and marketing their designs), users of nuclear energy (e.g., to estimate the cost of decarbonization of other industries using nuclear), and government (e.g., in capacity expansion models that are used in framing policy). In this summary, we demonstrate a software tool called ACCERT that is currently being developed with funding from the Systems Analysis and Integration (SA&I) program under the Department of Energy’s Office of Nuclear Energy (DOE NE). ACCERT is a cost estimation and techno-economics tool for nuclear power plant applications that includes a database of (a) cost estimates of various ‘reference’ nuclear power plant designs gathered from existing literature, and (b) algorithms developed from these costs that can be used extrapolate the existing costs and perform a bottom-up cost estimation of other designs. A companion summary describes the software and its design in more detail and this summary presents a demonstration for four different nuclear power plant designs: a pressurized water reactor (PWR), high-temperature gas reactor (HTGR), sodium fast reactor (SFR), and a heat-pipe microreactor. The demonstrations include the reference cost estimates and the cost estimates of a modified design for each reference case.

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS↗

An economics-by-design approach to a radiant integrated thermophotovoltaic microreactor system

This paper presents an application of the economics-by-design approach to the Radiant Integrated Thermo-photovoltaic Microreactor System (RITMS). The RITMS design is unique in that it directly couples a critical fission reactor with thermo-photovoltaic (TPV) panels for high efficiency energy conversion. This significant shift from electric conversion using traditional dynamic heat pumps leads to a simpler and more reliable system without turbomachinery and high pressurization. In working towards wrapping up the early design work, the economics-by-design approach, which centers economic competitiveness as the optimization parameter, is well suited in making a final determination on viability. This paper describes the computational sequence that was developed to couple the radiative and conductive heat transfer and feed operational performance to cost estimation. The framework was applied to maximize the power of the system, while minimizing the fuel enrichment. This method is applied to a reference RITMS design as part of a parametric sensitivity study, which revealed that the system is under moderated and that single unit plants could produce power as low as 300 dollar/MWh. This price point supports the notion that early in the RITMS design implementation, adoption into niche markets as a first-of-a-kind technology is possible. (authors)

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS↗

United States–Brazil Joint Study: A Preliminary Assessment of Opportunities and Challenges for Small Modular Reactors in Brazil

This report supplies the technical information to enable a broader understanding of different technology choices for nuclear reactors in Brazil. The assessment characteristics of this process include reactor technology, economic costs for deployment, and regulatory analyses of small modular reactors, advanced reactors, and microreactors. The analysis documented in this report provides economic and technological information to assist Brazil, whose official indicative scenarios show an increase in operating nuclear power from 2 Gigawatt in 2022 to 8–10 Gigawatt by 2050, in policy making and long-term energy planning. To protect company proprietary information, the information in this report was limited to publicly available information and therefore can only inform preliminary reactor technology assessments. This report does not recommend or endorse any specific reactor developer or technology.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

Mapping thermal energy storage technologies with advanced nuclear reactors

Advanced nuclear power plants (NPPs) will potentially need to operate in environments where power generation flexibility is more highly valued than the stability or baseload generation capability for conventional demand curves. Thermal energy storage (TES) systems would enable NPPs to respond nimbly to market variability and could also position advanced NPPs to participate differently in restructured markets, thus further enhancing their economic competitiveness. TES systems could also benefit the electric grid by eliminating the need for peaking plants, as well as by improving the economic performance of baseload NPPs. While TES technologies afford a unique opportunity to address many of these challenges, the applicability of these systems is also complicated by the fact that various advanced NPPs are designed differently, each with its own temperature range, size, operating fluids, and operating conditions. Hence, TES systems face significant barriers to investment, as more information on their compatibility and performance metrics is needed to quantify the advantages provided by each, as well as the challenges these technologies might face if coupled with a particular type of advanced NPP. This study explores the possibility of integrating a wide variety of TES technologies with various categories of advanced NPPs, based on their operating characteristics. To help decision makers, users and developers decide which TES technology is best suited to a particular category of advanced NPPs, this research present a Phenomena Identification and Ranking Table (PIRT) analysis of 10 TES systems that could potentially be coupled with advanced NPPs, which themselves are divided into nine categories based on their operating conditions. Then, each advanced NPP category is evaluated for compatibility with the 10 TES systems by assembling and discussing a database of information concerning 10 engineering questions, defined herein in as figures of merit (FOMs), such as: technology readiness level (TRL), temperature compatibility, energy density, size, cycle frequency, ramp time, realignment frequency, geographic needs, environmental impact, and interventions. By assembling a database of information concerning the TES technologies' compatibility with various advanced NPP systems, this study can help developers acquaint themselves with a particular TES technology before choosing to build a new integrated installation.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗