Economic Considerations for Factory Fabrication of SMRs

Abstract

Factory fabrication is considered a key differentiating feature of small modular reactors (SMRs). It is touted as a solution to long-fought challenges with nuclear economics, and essential to the overall success of the technology. However, little research has been done to understand how SMR factories should be established to maximize the economic benefit, and what risks are associated with this model. An initial survey identifies fourteen factors under four main categories for further consideration: financing, factory construction and operation, direct savings/costs to the SMR, and supply chain structure. A high level methodology is established to understand the impacts of these factors, both positive and negative, to better inform the next steps required for SMR factory fabrication. Preliminary results show factory fabrication can offer many of the benefits claimed. However, it was also found in some scenarios that factory fabrication can increase the cost of the SMR. Further work is planned to better define scenarios where factory fabrication offers the greatest benefit, and steps that can be taken to mitigate against potential cost increases.