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At least 19 records

Effects of the U.S. inflation reduction act on SMR economics

The U.S. Inflation Reduction Act (IRA) of 2022 provides a wide array of tax credits and other incentives for low-carbon energy. The technology-neutral clean generation production tax credit (PTC) (Section 45Y of the U.S. Internal Revenue Code) and the technology-neutral investment tax credit (ITC) (Section 48E) lower the net cost of new electricity generation projects with zero or negative greenhouse gas emission rates. We evaluate the impact of the IRA legislation—specifically the PTC and ITC—on the cost-competitiveness of small modular reactors (SMRs). We use the Argonne Low-carbon Energy Analysis Framework (A-LEAF) model to calculate the capacity factor of an SMR with a range of hypothetical variable operating and maintenance (O&M) costs in the Electric Reliability Council of Texas (ERCOT) electricity market. We selected ERCOT for market modeling because of its competitive structure, available data, and extensive use in prior literature. We use a discounted cash flow model to calculate the SMR’s net present value based on the market prices and capacity factors from A-LEAF, hypothetical ranges of capital and variable O&M costs, and other input parameters, with or without the IRA tax credits. We determine the SMR owner’s optimal choice of PTC or ITC for the hypothetical ranges of capital and variable O&M costs. We also evaluate potential shifts in the SMR owner’s optimal choice of PTC or ITC based on historical patterns of nuclear capital cost overruns in the United States. We also assess the sensitivity of our results to longer PTC period and electricity prices from the New England market, which tend to be higher than electricity prices in ERCOT. We find that even with the IRA tax credits, only SMRs with low capital and variable O&M costs would be economically feasible in the low-price ERCOT market scenario modeled. A longer PTC period and higher-price market such as New England, however, would significantly expand the economic feasibility of SMRs in the United States.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Quantifying Capital Cost Reduction Pathways for Advanced Nuclear Reactors

The framework developed in this study is provided both as an excel sheet (https://inl.gov/content/uploads/2023/11/Nuclear-Reactor-Cost-Reduction-Pathway-Spreadsheet-Tool.xlsx) and a Python (Jupyter) Notebook (link: https://github.com/accert-dev/ACCERT/tree/main/Cost%20Reduction). Capital cost considerations are one of the primary inhibitors to the large-scale deployment of nuclear power plants. While it is widely accepted that first units will likely be expensive and relatively uncompetitive, it is reasonable to expect that subsequent units, built in relative quick succession, will be cheaper as they benefit from the so-called “learning effects”. However, the large degree of uncertainty associated with this parameter renders it challenging for first movers to invest in the first few expensive units. To resolve this impasse, the U.S. Department of Energy’s Advanced Nuclear Liftoff study advocated for the formation of large, committed order books of plants of the same technology to spread the costs across several units and kickstart the nuclear supply chain. The study also advocated best practices for avoiding overruns and keeping reactors on budget. This report builds on these key recommendations by attempting to quantify specific pathways toward cost reduction for nuclear energy. A capital cost estimation framework was built to untangle the effect of learning into a subset of key cost drivers, referred to as “levers”. Collectively, the choice of these levers is intended to reflect the decision-making of high-level stakeholders like plant owners and the government. In addition to the size of the firm orderbook, these levers included (a) cost drivers that are most often attributed to cost overruns such as architect/engineering (A/E) proficiency, construction proficiency, procurement service proficiency, design completion prior to the start of construction, and design maturity, and (b) cost reduction strategies such as modular construction, cross-site standardization, safety classification of the reactor building, and of the balance of plant. Two advanced reactor designs were leveraged as use cases and bottom-up cost estimates made with assumptions consistent with a well-executed first-of-a-kind project (WE-FOAK, i.e., almost no overruns) were used as baselines for the models. Cost correlations were surveyed from the literature to determine the impact of important variables on projected timelines and costs.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

Open Architecture for Cost Savings in Advanced Nuclear Reactors

Recently, nuclear power plant build projects in the West have run over budget due to high capital costs and schedule overruns. Compared to other sources of energy, nuclear power plants have higher capital costs. Reactors are often different at every site, resulting in a lack of standardization. Nuclear is expected to compete with other low carbon sources of energy which have lower capital costs making it essential for nuclear to develop ways of reducing costs. Strategies such as standardization, learning rates, modularization, and schedule reduction in advanced reactors can reduce nuclear costs by about 40%. Standardization as a way of cutting capital costs has been explored even in large nuclear power plants. Standardization of certain plant components can result in lower component and installation costs and higher learning from experience. Standardization can be achieved by adopting a criterion of key performance indicators and general design principles for a specific system or component such as the balance of plant. Modularization allows the construction of certain components of SMRs in a factory, which saves time, increases productivity, and encourages higher learning rates. Production learning decreases the time and the cost related to an activity. The potential for modularized components of advanced reactors to be manufactured in factories makes it conducive to achieving higher learning rates. Developing large-capacity nuclear programs through sequential builds cultivates a higher learning rate, which in effect may reduce schedule overruns. Open architecture has been identified as a way to drive standardization among advanced reactor designs and result in cost savings. Open architecture (OA) is defined as a design enabling a diverse supply chain by defining and publishing requirements of systems or equipment in functional and/or interface terms, utilizing technical standards in widespread use. Currently, the nuclear industry’s approach is to use closed architecture, making most designs proprietary. However, collaboration between various advanced reactor vendors and suppliers utilizing the concept of open architecture can result in modular and standardized architecture of subsystems or subcomponents of a nuclear power plant. Completely standardizing nuclear power plants may be impossible, however, certain common subsystems amongst the various reactor designs could be standardized and/or access a wider supply chain and leverage existing learning from other sectors. Open architecture will save time and allocate resources to the parts of the plants that have the most unique features. A key advantage of open architecture is its ability to improve production learning across advanced reactors (AR) types in the industry, by providing and utilizing the same kind of component. Sodium fast reactor (SFR), High Temperature Gas Reactor (HTGR) and Molten Salt Reactor (MSR) are the advanced reactors considered for this project. This paper aims to determine the cost savings in advanced reactor programs due to open architecture learning rate. This work is an extension of work done on light water reactor small modular reactors; the cost methodology was utilized to investigate the impact of open architecture on advanced reactors with a particular focus on sodium fast reactors. The cost data on sodium fast reactors used in the model presented the most adequate information required for the analysis.

Advanced Nuclear Reactors↗

Parametric and Nonparametric Models of U.S. Cost Overruns for Nuclear Power Plants

This study presents new data-driven models to estimate the effect of capacity on the percentage of cost overruns in the United States for nuclear power plant construction projects before and after the Three Mile Island accident. Parametric and nonparametric models have been developed that describe the significant shifts in nuclear energy costs during the dynamic environment. Employing a contemporary descriptive methodology and a quantitative analysis, we furnish a comprehensive overview of the alterations in cost overrun distribution and show the changes observed in other pivotal metrics alongside cost overruns. Our emphasis lies in documenting the fluctuations in cost overruns alongside nuclear reactor capacity levels and the increase of the overnight capital costs to build nuclear reactors. Our results show that increasing the size of nuclear reactors is not a factor statistically significant to decrease the percentage of cost overruns, and the probit model results provide evidence that an increase in size increases the probability of having cost overruns larger than 100% (double the estimated cost). We also compare our findings to two other regions: Asia and Europe.

11 NUCLEAR FUEL CYCLE AND FUEL MATERIALS↗

What can nuclear energy do for society.

Nuclear fuel is a compact and abundant source of energy. Its cost per unit of energy is less than that of fossil fuel. Disadvantages of nuclear fuel are connected with the high cost of capital equipment required for releasing nuclear energy and the heavy weight of the necessary shielding. In the case of commercial electric power production and marine propulsion the advantages have outweighed the disadvantages. It is pointed out that nuclear commercial submarines have certain advantages compared to surface ships. Nuclear powerplants might make air-cushion vehicles for transoceanic ranges feasible. The problems and advantages of a nuclear aircraft are discussed together with nuclear propulsion for interplanetary space voyages.

Rom, F. E.↗

Updating Nuclear Energy Cost Estimates for Net Zero World Initiative

Energy modeling of decarbonized scenarios in integrated energy systems requires nuclear energy parameters that are critical for forecasting, modeling and cost structure analysis. Using updated real-world data has always been a challenge to estimate current nuclear reactors costs and deployment scenarios. Given this, an updated set of parameters for overnight capital costs and operation and maintenance costs are estimated for the Net Zero World initiative using recent reports that provided a vast set of open sources data inputs. This paper follows the methodology developed in the Net Zero World report and applies the new ranges estimated in the Gateway for Accelerated Innovation in Nuclear report that address many of the current challenges in obtaining accurate cost data for advanced nuclear concepts. The final goal is to provide new estimates of the overnight capital costs and operational costs for different countries. The present paper improves the earlier capital cost estimations, building on recent literature that aims to obtain accurate data for modeling and simulation to enhance energy system evaluations and support decision-making in areas like de-carbonization and capacity expansion. Finally, the paper compares the new cost estimates with the old cost results.

11 - NUCLEAR FUEL CYCLE AND FUEL MATERIALS↗

Non-destructive structural characterization of graphite components using mechanical resonance and deep learning

As compared to conventional nuclear reactors, microreactors have the potential to significantly reduce construction timelines and capital costs, decreasing the barriers for advanced nuclear reactor technologies. However, the lower power output of these microreactors (typically < 20 MWe) creates challenging economics if operation and maintenance costs cannot be sufficiently reduced. The compact size of these designs presents an opportunity for comprehensive in-situ structural health monitoring to provide real-time feedback in order to reduce operational costs associated with maintenance and downtime. Many microreactor concepts use graphite for both in-core neutron moderation and as a structural material, which has typically required some form of periodic and laborious inspection. This report provides a description and assessment of recent work with graphite to couple acoustic-based experimental measurements and characterization with machine learning models to mature structural health monitoring capabilities and generate benefits for the nuclear microreactor industry. With resilient embedded sensors in development in other programs funded by the US Department of Energy’s Office of Nuclear Energy and elsewhere, the work described herein builds upon previously funded efforts to mature non-destructive testing technology that relates measured vibrational signatures to structural changes, using a combination of new experimental measurements and machine learning processing. Building on past successful demonstrations of predictive workflows to identify structural changes in a hexagonal stainless steel test article with excellent acoustic propagation, we first performed baseline characterization on graphite samples with canonical geometries to ensure compatibility and confidence in the applied techniques for a material with distinctly different mechanical properties. In contrast to efforts in previous years, we worked exclusively with unidirectional vibration data that is more comparable to those expected from the existing embedded sensor technologies which are suitable for deployment in a reactor setting. Established acoustic and modern machine-learning-based characterization approaches were applied to the resulting datasets from these simple geometries. Both approaches were found to be highly capable of detecting even small geometric irregularities amongst nominally identical samples. As such, we then moved to testing these approaches for detection of artificial local stress perturbations introduced into a more complex geometry: a hexagonal block with drilled holes. A main outcome of this work is that a generalizable ML workflow can be used to detect and predict the characteristics of small artificial anomalies in a graphite component with a relevant geometry. While this work was performed using surficial vibration data, we expect the approach to be flexible and viable for other monitoring scenarios, such as those with different arrangements or types of sensor arrays. As compared to previously funded efforts, an existing ML workflow based on neural networks was enhanced through the addition of recently developed Fourier neural operators. As applied to previously collected and new vibration datasets, prediction accuracies of anomaly characterizations were greatly improved with minimal added computational cost. As trained on small durations of vibration data (tens of seconds) collected over a realistic number of locations, the model was able to reliably determine the presence of a subtle stress anomaly and begin to provide location estimates. Such an approach is likely to be viable for more relevant reactor damage scenarios for graphite components, such as progressive crack growth or creep.

36 MATERIALS SCIENCE↗

Capital cost estimate

The capital cost estimate for the nuclear process heat source (NPHS) plant was made by: (1) using costs from the current commercial HTGR for electricity production as a base for items that are essentially the same and (2) development of new estimates for modified or new equipment that is specifically for the process heat application. Results are given in tabular form and cover the total investment required for each process temperature studied.

Source record↗

The Conceptual Design of an Integrated Nuclearhydrogen Production Plant Using the Sulfur Cycle Water Decomposition System

A hydrogen production plant was designed based on a hybrid electrolytic-thermochemical process for decomposing water. The sulfur cycle water decomposition system is driven by a very high temperature nuclear reactor that provides 1,283 K helium working gas. The plant is sized to approximately ten million standard cubic meters per day of electrolytically pure hydrogen and has an overall thermal efficiently of 45.2 percent. The economics of the plant were evaluated using ground rules which include a 1974 cost basis without escalation, financing structure and other economic factors. Taking into account capital, operation, maintenance and nuclear fuel cycle costs, the cost of product hydrogen was calculated at $5.96/std cu m for utility financing. These values are significantly lower than hydrogen costs from conventional water electrolysis plants and competitive with hydrogen from coal gasification plants.

Farbman, G. H.↗

Resource Adequacy and Capital Cost Considerations Pertaining to Large Electric Grids Powered by Wind, Solar, Storage, Gas, and Nuclear

The capacity and generation of wind, solar, storage, nuclear, and gas are estimated for large, idealized copper-plate electric grids. Wind and solar penetrations of 30% to 80% are considered together with different storage systems such as vanadium and lithium-ion batteries, pumped hydroelectric, compressed air, and hydrogen. In addition to a baseline dispatchable fleet without wind/solar, two bounding cases with wind/solar are analyzed: one without storage and one where the whole wind/solar fleet is connected to the storage system, hence providing a buffer between the wind/solar fleet and the grid. The reality will likely be somewhere between these bounding cases. The viability of a power grid with a large wind/solar penetration and no storage is not guaranteed but was nonetheless considered to provide a lower-bound capital cost estimate. Overall, the options that rely strongly on wind, solar, and storage could be significantly more capital-intensive than those that rely strongly on nuclear, depending on the amount of storage necessary to ensure grid stability. This is especially true in the long run because wind, solar, and storage assets have shorter lifetimes than nuclear plants and, consequently, need to be replaced more frequently. More analyses (e.g., grid stability and public acceptance) are necessary to determine which option is most likely to provide the path of least resistance to powering a clean, affordable, and reliable grid in a timely manner. Depending on the priorities, the path of least resistance may not necessarily be the one that is less capital intensive.

adequacy↗

Powering Data Centers with Clean Energy: A Techno-Economic Case Study of Nuclear and Renewable Energy Dependability

Rising data demands from artificial intelligence (AI) and large language models (LLMs) generating images, videos, and text have prompted increased need for larger and more robust data centers in the United States. Major companies interested in these larger data centers face the choice of linking them to existing regional grids, building stand-alone power supplies onsite, or a combination of both. The request, review, and approval process for new transmission lines to grids in the United States, however, has grown in recent years to times spans rivaling those of new construction for nuclear power plants. Building an islanded power supply for each data center is therefore becoming a prominent option. In this case study, several technologies are modeled in techno-economic simulations for long-term system costs subject to fixed electricity demand from a singular data center. A 250 MWe data center is assumed with additional 50 MWe for resiliency. Techno-economic simulations are conducted using the Holistic Energy Resource Optimization Network (HERON) software, which is a part of the Framework for Optimization of Resources and Economics (FORCE) tool suite. Technologies considered include solar, wind, lithium-ion batteries, and several types of nuclear reactors: large-scale reactors, small modular reactors, and microreactors. A low- and high-cost estimate for each technology is assumed to develop a range of expected economic performance. Low-cost estimates included several clean energy production tax credits. Different combinations of renewable energy generators with nuclear reactors are considered, ranging from a fully renewable-powered data center to a fully nuclear-powered data center. Historic time series of wind and solar availability from the Texas grid are used to train a reduced order model; this model then generates unique time series with similar characteristics of the training dataset. Multiple scenarios of weather and subsequent operations are simulated for each renewable-nuclear combination to determine total costs throughout the project lifetime. Fully renewable-powered configurations required large amounts of installed capacity (GW scale) in the simulations to meet the fixed demand of the data center. This is due to some scenarios in the historical dataset which captured low-wind and low-solar days, requiring over-building of these technologies as well as batteries to compensate for the low amounts of electricity generation. Fully nuclear-powered configurations outperformed the fully renewable and mixed renewable-nuclear configurations in terms of cost, with ranges between $1B and $10B in 2023 USDs compared to $40B+ for fully renewable configurations. Of the nuclear technologies, small modular reactors performed better economically than large-scale nuclear models due to lower projected capital costs, and both performed better than the microreactor models. These results demonstrate the applicability of firm, dispatchable electricity resources from baseload generators like nuclear power plants for operating facilities that run at constant power without daily variability.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

Nuclear Energy Cost Estimates for Net Zero World Initiative – 2024 Update

This report provides recommended parameters for incorporating nuclear energy systems into decarbonization modeling scenarios. The values are primarily intended for the Net Zero World (NZW) Initiative but are expected to prove useful to other related efforts. Both costs and operational metrics are provided in the study for large reactors and small modular reactors (SMR).

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

What can nuclear energy do for society.

It is pointed out that the earth's crust holds 30,000 times as much energy in the form of fissionable atoms as fossil fuel. Moreover, nuclear fuel costs less per unit of energy than fossil fuel. Capital equipment used to release nuclear energy, on the other hand, is expensive. For commercial electric-power production and marine propulsion, advantages of nuclear power have outweighed disadvantages. As to nuclear submarines, applications other than military may prove feasible. The industry has proposed cargo submarines to haul oil from the Alaskan North Slope beneath the Arctic ice. Other possible applications for nuclear power are in air-cushion-vehicles, aircraft, and rockets.-

Rom, F. E.↗

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↗

Options for Achieving Cost Reduction in Advanced Reactors through Open Architecture

A key contributor to high capital costs and schedule overruns for new nuclear power plants is lack of standardization, driven by site-specific customization and construction of multiple designs by competing vendors rather than commitment to a single standardized program. While advanced reactor vendors typically individually target repeat construction of standardized units, the many competing designs could exacerbate the problem. “Open Architecture”, the open specification of requirements and interfaces for structures, systems and components (SSCs), has been proposed as a means of promoting standardization, by facilitating existing non-nuclear suppliers to enter the industry and/or allowing SSCs to be configured for more than one reactor within the same technology type. Contracting mechanisms that facilitate information sharing and alignment of incentives between stakeholders may complement such an approach. A preliminary scheme is presented for selection of SSCs for which such strategies could be adopted, based on a vendor make/buy decision model and stakeholder interviews. SSCs are categorized according to number of suppliers and their contribution to the reactor’s competitive edge. SSCs with many potential suppliers and a high contribution to competitive edge may be attractive for widening the supply chain via open specification of system requirements and interfaces, e.g., SSCs in the power island. SSCs with few suppliers and low contribution to competitive edge may be potential avenues for common system specification between vendors, e.g., some of the auxiliary SSCs. Potential cost reductions from such strategies will depend upon the size of the build program and the reactor type.

11 NUCLEAR FUEL CYCLE AND FUEL MATERIALS↗

Research Highlight - Dispatch Optimization, System Design and Cost Benefit Analysis of a Nuclear Reactor with Molten Salt Thermal Storage

We highlight our work from our previous publication titled "Dispatch Optimization, System Design, and Cost Benefit Analysis of a Nuclear Reactor with Molten Salt Thermal Storage" published in MDPI Energies 2022 (doi.org/10.3390/en15103599). Variable renewable energy availability has increased the volatility in energy prices in most markets. Nuclear power plants, with a large ratio of capital to variable costs, have historically operated as base load energy suppliers but the need for more flexible operation is increasing. We simulate the techno-economic performance of a 950 MWt nuclear power plant, based on the Westinghouse lead-cooled fast reactor, coupled with molten salt thermal storage as a method for flexible energy dispatch. We use the System Advisor Model to model the nuclear reactor thermal power input and power cycle operating modes. We combine this robust engineering model with a mixed-integer linear program model for optimized dispatch scheduling. We then simulate the coupled nuclear and thermal storage system under different market scenarios with varying price volatility. We find that the coupled plant outperforms the base plant under markets where energy price peaks fluctuate by a factor of two or more about the mean price. We show that a calculated power purchase agreement price for the plant improves by up to 10% when operating under California energy market conditions. Sensitivity analysis on the thermal storage cost shows that the optimal design remains unchanged even when doubling costs.

97 MATHEMATICS AND COMPUTING↗

Sentiment analysis of the United States public support of nuclear power on social media using large language models

This study utilized large language models (LLMs) to analyze public sentiment in the United States (US) regarding nuclear power on social media, focusing on X/Twitter, considering climate change challenges and advancements in nuclear power technology. Approximately, 1.26 million nuclear tweets from 2008–2023 were examined to fine-tune LLMs for sentiment classification. We found the crucial role of accurate data labeling for model performance, with potential implications for a 15% improvement, achieved through high-confidence labels. LLMs demonstrated better performance compared to traditional machine learning classifiers, with reduced susceptibility to overfitting and up to 96% classification accuracy. LLMs are used to segment the US public tweets into policy and energy-related categories, revealing that 68% are politically themed. Policy tweets tended to convey negative sentiment, often reflecting opposing political perspectives and focusing on nuclear deals and international relations. Energy-related tweets covered diverse topics with predominantly neutral to positive sentiment, indicating broad support for nuclear power in 48 out of 50 US states. The US public positive sentiments toward nuclear power stemmed from its high power density, reliability regardless of weather conditions, environmental benefits, application versatility, and recent innovations and advancements in both fission and fusion technologies. Negative sentiments primarily focused on waste management, high capital costs, and safety concerns. The neutral campaign highlighted global nuclear facts and advancements, with varying tones leaning towards positivity or negativity. An interesting neutral theme was the advocacy for the combined use of renewable and nuclear energy to attain net-zero goals.

Energy & Fuels↗

Gas absorption/desorption temperature-differential engine

Continuously operating compressor system converts 90 percent of gas-turbine plant energy to electricity. Conventional plants work in batch mode, operating at 40 percent efficiency. Compressor uses metal hydride matrix on outside of rotating drum to generate working gas, hydrogen. Rolling valve seals allow continuous work. During operation, gas is absorbed, releasing heat, and desorbed with heat gain. System conserves nuclear and fossil fuels, reducing powerplant capital and operating costs.

Miller, C. G.↗