As construction of first small modular reactor looms, prospective buyers wait for the final tally
[url]https://www.theglobeandmail.com/business/article-as-construction-of-first-small-modular-reactor-looms-prospective/[/url]
The race to construct Canada’s first new nuclear power reactor in 40 years seems to have passed a point of no return. This summer, Ontario Power Generation completed regrading the site for its Darlington New Nuclear Project in Clarington ([url]https://www.theglobeandmail.com/business/article-though-its-design-is-incomplete-nuclear-safety-regulator-says-the/[/url]), Ont., and started drilling for the reactor’s retaining wall, which will be buried partly underground. At a regulatory hearing, OPG’s chief executive officer Ken Hartwick, who will retire at the end of this year, promised that this reactor will be “the first of many to come.”
But that will depend on a crucial yet-to-be-revealed detail: its price tag.
It’s no exaggeration to say that the world is waiting for it. The new Darlingtonreactor would be the first BWRX-300, a small modular reactor (SMR) being designed by an American vendor, GE-Hitachi Nuclear Energy, and the first SMR built in any Western country. Other prospective buyers include the Tennessee Valley Authority (TVA), SaskPower and Great British Nuclear. More BWRX-300s are in early planning stages in Poland and the Czech Republic.
Crucially, however, OPG is the first and only utility worldwide to bind itself contractually to build a BWRX-300. A report published by the U.S. Department of Energy in September said American utilities are waiting to see pricing and construction schedules for early units, and would “prefer to be fifth.” SaskPower also wants to avoid the risks associated with building a “first of a kind” reactor; it won’t decide until 2029 and it hopes SMRs will be less expensive than traditional nuclear plants.
Scheduled for release this winter, the Darlington SMR’s estimated cost will speak volumes about whether SMRs can deliver on their many promises. Yet there are early indications of serious sticker shock: Recently published estimates from the TVA suggest the first BWRX-300 could cost more than five timesGE-Hitachi’s original target price. How will OPG and GE-Hitachi drive pricing far below the TVA’s estimate? And if they cannot, what then will be the prospects for SMRs?
Ditching the scaling law
SMRs were conceived as an antidote to the hefty price tags that brought reactor construction to a standstill in Western countries for decades.
Previously, the nuclear ([url]https://www.theglobeandmail.com/topics/nuclear-energy/)industry[/url] relied heavily on something called economies of scale or the “scaling law”: As a power plant’s size increases, capital costs also rise, but in a less than linear fashion. So vendors designed ever-larger reactors. Reactors under construction today average about one gigawatt, roughly three times the BWRX-300’s output. They can cost more than US$10-billion, leaving only the largest government-backed utilities as potential purchasers.
SMRs represent a promising but untested new approach to manufacturing reactors – one that emphasizes simplification and mass production techniques. The key term is modular:Rather than building monolithic, one-of-a-kind plants, the industry hoped instead to churn out substantially identical factory-built units; repetition would help drive down costs, as it had for competing technologies such as wind turbines and solar panels.
But modularity requires multiple orders, which in turn demands competitive pricing. Through early discussions with potential customers, GE-Hitachi executives understood the BWRX-300 had to be priced low, not only in absolute terms, but also relative to other power-generation technologies. They told audiences it would cost less than US$1-billion, or US$2,250 per kilowatt of power generation capacity – low enough to compete with natural gas-fired power plants.
“The total capital cost of one plant has to be less than $1-billion in order for our customer base to go up,” Christer Dahlgren, a GE-Hitachi executive, said during a talk in Helskini in March, 2019.
The BWRX-300 was to be one-tenth the size of a large nuclear reactor, mainly to reduce the amount of concrete required for its construction. But as its design evolved, conceptual drawings appear to show that
both the reactor building and the rest of the plant grew considerably.
Early plans described a highly compact, 8,400-square-metre
plant. The reactor shaft's diameter was about 20 metres.
It appeared larger in later sketches, but the plant’s turbines continued to rest on a single concrete slab.
By this year, the reactor building's diameter had reached 37 metres, greatly increasing its volume, and the overall footprint had grown to 9,800 square metres.
Shrinking a giant
GE-Hitachi’s designers began by shrinking a behemoth: the 1,500-megawatt Economic Simplified Boiling Water Reactor (ESBWR). Their objective was to reduce the volume of the building housing the reactor by 90 per cent, to greatly reduce the amount of concrete and steel required during construction.
This was accomplished primarily through eliminating safety systems. Pressure relief valves, common in traditional reactors, were removed. In place of two completely separate emergency shutdown systems, as is customary, the BWRX-300 would have two systems that would propel the same set of control rods into the reactor’s core. GE-Hitachi emphasized that the BWRX-300 featured “passive” safety systems that would keep the reactor safe during an accident, and its simplicity reduced the need for redundant engineered systems.
Sean Sexstone, head of GE-Hitachi’s advanced nuclear team, said the entire facility – which includes the reactor building, the control room and the turbine hall – will measure just 145 metres by 85 metres.
“You can walk that site in a minute-and-a-half,” he said.
GE-Hitachi also sought substitutes for concrete. The reactor building is to be constructed using factory-made steel panels that will be shipped to the site, assembled into modules and lifted by crane into position. These modules essentially serve as forms into which concrete is poured. These steel plates are as strong as concrete, OPG says, yet eliminate the need to use rebar extensively. This approach “lends itself to more modularity, more work in a factory, versus more work in the field,” Mr. Sexstone explained.
The Darlington SMR will be erected using a technique called “open-top construction.” The reactor building’s roof won’t be installed until the very last. The building will be constructed upward, floor by floor, with large components lowered in by crane rather than being moved through doors and hatches.
Many of the BWRX-300’s components would be identical to those used in previous GE power plants, such as its control rods, fuel assemblies and steam separators. Its steam turbine would be the same one used in natural-gas-fired plants. And the plant could be run by as few as 75 staff, far below the nearly 1,000 employed at large single-reactor Canadian nuclear plants.
Historically, utilities tended to build bespoke nuclear plants meeting highly individualized requirements. The result: In the United States ([url]https://www.theglobeandmail.com/topics/united-states/)alone[/url] there are more than 50 commercial reactor designs. Few designs were built twice, limiting opportunities to learn through repetition.
GE-Hitachi intended the BWRX-300 to be highly standardized, constructible in multiple countries with as few tweaks as possible. It assembled an international coterie of utility partners, including OPG, the TVA and a Polish company named Synthos Green Energy, which last year agreed to jointly contribute to the estimated US$400-million cost of the SMR’s standardized design.
Subo Sinnathamby, OPG’s chief projects officer, acknowledged in an interview that the first SMR will be expensive. But lessons learned from building it, including newly identified opportunities for additional modularization, will be applied to three subsequent units at Darlington, bringing down overall costs.
“For us, success is going to be sticking to how we have executed megaprojects at OPG, using the same processes and principles,” she said, citing the continuing refurbishment ([url]https://www.theglobeandmail.com/business/article-darlington-nuclear-generating-station-refurbishment/[/url]) of Darlington’s existing reactors.
“The last thing we want to do is get into construction and then stop the work force.”
?
[url]https://www.theglobeandmail.com/business/article-as-construction-of-first-small-modular-reactor-looms-prospective/[/url]
The race to construct Canada’s first new nuclear power reactor in 40 years seems to have passed a point of no return. This summer, Ontario Power Generation completed regrading the site for its Darlington New Nuclear Project in Clarington ([url]https://www.theglobeandmail.com/business/article-though-its-design-is-incomplete-nuclear-safety-regulator-says-the/[/url]), Ont., and started drilling for the reactor’s retaining wall, which will be buried partly underground. At a regulatory hearing, OPG’s chief executive officer Ken Hartwick, who will retire at the end of this year, promised that this reactor will be “the first of many to come.”
But that will depend on a crucial yet-to-be-revealed detail: its price tag.
It’s no exaggeration to say that the world is waiting for it. The new Darlingtonreactor would be the first BWRX-300, a small modular reactor (SMR) being designed by an American vendor, GE-Hitachi Nuclear Energy, and the first SMR built in any Western country. Other prospective buyers include the Tennessee Valley Authority (TVA), SaskPower and Great British Nuclear. More BWRX-300s are in early planning stages in Poland and the Czech Republic.
Crucially, however, OPG is the first and only utility worldwide to bind itself contractually to build a BWRX-300. A report published by the U.S. Department of Energy in September said American utilities are waiting to see pricing and construction schedules for early units, and would “prefer to be fifth.” SaskPower also wants to avoid the risks associated with building a “first of a kind” reactor; it won’t decide until 2029 and it hopes SMRs will be less expensive than traditional nuclear plants.
Scheduled for release this winter, the Darlington SMR’s estimated cost will speak volumes about whether SMRs can deliver on their many promises. Yet there are early indications of serious sticker shock: Recently published estimates from the TVA suggest the first BWRX-300 could cost more than five timesGE-Hitachi’s original target price. How will OPG and GE-Hitachi drive pricing far below the TVA’s estimate? And if they cannot, what then will be the prospects for SMRs?
Ditching the scaling law
SMRs were conceived as an antidote to the hefty price tags that brought reactor construction to a standstill in Western countries for decades.
Previously, the nuclear ([url]https://www.theglobeandmail.com/topics/nuclear-energy/)industry[/url] relied heavily on something called economies of scale or the “scaling law”: As a power plant’s size increases, capital costs also rise, but in a less than linear fashion. So vendors designed ever-larger reactors. Reactors under construction today average about one gigawatt, roughly three times the BWRX-300’s output. They can cost more than US$10-billion, leaving only the largest government-backed utilities as potential purchasers.
SMRs represent a promising but untested new approach to manufacturing reactors – one that emphasizes simplification and mass production techniques. The key term is modular:Rather than building monolithic, one-of-a-kind plants, the industry hoped instead to churn out substantially identical factory-built units; repetition would help drive down costs, as it had for competing technologies such as wind turbines and solar panels.
But modularity requires multiple orders, which in turn demands competitive pricing. Through early discussions with potential customers, GE-Hitachi executives understood the BWRX-300 had to be priced low, not only in absolute terms, but also relative to other power-generation technologies. They told audiences it would cost less than US$1-billion, or US$2,250 per kilowatt of power generation capacity – low enough to compete with natural gas-fired power plants.
“The total capital cost of one plant has to be less than $1-billion in order for our customer base to go up,” Christer Dahlgren, a GE-Hitachi executive, said during a talk in Helskini in March, 2019.
The BWRX-300 was to be one-tenth the size of a large nuclear reactor, mainly to reduce the amount of concrete required for its construction. But as its design evolved, conceptual drawings appear to show that
both the reactor building and the rest of the plant grew considerably.
Early plans described a highly compact, 8,400-square-metre
plant. The reactor shaft's diameter was about 20 metres.
It appeared larger in later sketches, but the plant’s turbines continued to rest on a single concrete slab.
By this year, the reactor building's diameter had reached 37 metres, greatly increasing its volume, and the overall footprint had grown to 9,800 square metres.
Shrinking a giant
GE-Hitachi’s designers began by shrinking a behemoth: the 1,500-megawatt Economic Simplified Boiling Water Reactor (ESBWR). Their objective was to reduce the volume of the building housing the reactor by 90 per cent, to greatly reduce the amount of concrete and steel required during construction.
This was accomplished primarily through eliminating safety systems. Pressure relief valves, common in traditional reactors, were removed. In place of two completely separate emergency shutdown systems, as is customary, the BWRX-300 would have two systems that would propel the same set of control rods into the reactor’s core. GE-Hitachi emphasized that the BWRX-300 featured “passive” safety systems that would keep the reactor safe during an accident, and its simplicity reduced the need for redundant engineered systems.
Sean Sexstone, head of GE-Hitachi’s advanced nuclear team, said the entire facility – which includes the reactor building, the control room and the turbine hall – will measure just 145 metres by 85 metres.
“You can walk that site in a minute-and-a-half,” he said.
GE-Hitachi also sought substitutes for concrete. The reactor building is to be constructed using factory-made steel panels that will be shipped to the site, assembled into modules and lifted by crane into position. These modules essentially serve as forms into which concrete is poured. These steel plates are as strong as concrete, OPG says, yet eliminate the need to use rebar extensively. This approach “lends itself to more modularity, more work in a factory, versus more work in the field,” Mr. Sexstone explained.
The Darlington SMR will be erected using a technique called “open-top construction.” The reactor building’s roof won’t be installed until the very last. The building will be constructed upward, floor by floor, with large components lowered in by crane rather than being moved through doors and hatches.
Many of the BWRX-300’s components would be identical to those used in previous GE power plants, such as its control rods, fuel assemblies and steam separators. Its steam turbine would be the same one used in natural-gas-fired plants. And the plant could be run by as few as 75 staff, far below the nearly 1,000 employed at large single-reactor Canadian nuclear plants.
Historically, utilities tended to build bespoke nuclear plants meeting highly individualized requirements. The result: In the United States ([url]https://www.theglobeandmail.com/topics/united-states/)alone[/url] there are more than 50 commercial reactor designs. Few designs were built twice, limiting opportunities to learn through repetition.
GE-Hitachi intended the BWRX-300 to be highly standardized, constructible in multiple countries with as few tweaks as possible. It assembled an international coterie of utility partners, including OPG, the TVA and a Polish company named Synthos Green Energy, which last year agreed to jointly contribute to the estimated US$400-million cost of the SMR’s standardized design.
Subo Sinnathamby, OPG’s chief projects officer, acknowledged in an interview that the first SMR will be expensive. But lessons learned from building it, including newly identified opportunities for additional modularization, will be applied to three subsequent units at Darlington, bringing down overall costs.
“For us, success is going to be sticking to how we have executed megaprojects at OPG, using the same processes and principles,” she said, citing the continuing refurbishment ([url]https://www.theglobeandmail.com/business/article-darlington-nuclear-generating-station-refurbishment/[/url]) of Darlington’s existing reactors.
“The last thing we want to do is get into construction and then stop the work force.”
?
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