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21 May 2024

Small-Scale Nuclear Reactors: An Overview

By ESGCheck

Small-Scale Nuclear Reactors: An Overview

Small-scale nuclear reactors, commonly known as Small Modular Reactors (SMRs), represent a notable innovation in nuclear energy technology. These reactors are designed to be more flexible, cost-effective, and safer compared to traditional large-scale nuclear reactors. Here is a detailed exploration of what SMRs are, how they differ from conventional reactors, and their potential environmental and societal impacts.

What Are Small Modular Reactors (SMRs)?

SMRs are advanced nuclear reactors with a power capacity of up to 300 megawatts (MW) per unit, about one-third the capacity of traditional nuclear reactors. Their modular design allows components to be factory-manufactured and transported to the site for assembly, which simplifies and accelerates construction processes​ (ANSTO)​​ (IAEA)​.

Differences from Traditional Nuclear Reactors

  1. Size and Flexibility: SMRs are significantly smaller and can be deployed in locations unsuitable for larger reactors. Their modular nature allows for incremental scaling to match demand.
  2. Construction and Cost: Unlike conventional reactors, which are often custom-built on-site, SMRs are prefabricated and assembled on location, potentially reducing construction time and costs​ (ANSTO)​​ (IAEA)​.
  3. Safety Features: SMRs incorporate advanced passive safety systems, reducing reliance on external power sources and human intervention for cooling and emergency shutdowns​ (ANSTO)​​ (IAEA)​.
  4. Deployment Versatility: SMRs can be utilized in remote locations, for industrial applications, or to replace ageing fossil fuel plants, offering a versatile solution for various energy needs​ (ANSTO)​​ (Nuclear Energy Agency (NEA))​.

Pros of Small Modular Reactors

  1. Environmental Impact:

    • Lower Greenhouse Gas Emissions: SMRs produce minimal greenhouse gases during operation, contributing to climate change mitigation​ (IAEA)​.
    • Reduced Land Use: Their smaller size means SMRs require less land compared to large nuclear plants and renewable energy projects like solar farms​ (ANSTO)​.
  2. Safety and Reliability:

    • Enhanced Safety Features: SMRs rely on passive safety systems and inherent safety characteristics, reducing the risk of accidents​ (IAEA)​.
    • Resilience: They are designed to withstand extreme weather events and natural disasters better than larger reactors​ (IAEA)​.
  3. Economic Benefits:

    • Lower Initial Costs: Modular construction and smaller size can reduce the initial capital investment, making nuclear power more accessible​ (ANSTO)​.
    • Job Creation: The development, construction, and operation of SMRs can create jobs and stimulate local economies​ (Nuclear Energy Agency (NEA))​.

Cons of Small Modular Reactors

  1. Nuclear Waste: SMRs produce radioactive waste that requires long-term management and disposal solutions​ (IAEA)​.
  2. Regulatory Hurdles: The deployment of SMRs is subject to stringent regulatory approvals, which can vary significantly across regions and potentially delay projects​ (Nuclear Energy Agency (NEA))​.
  3. Public Perception: Nuclear energy faces public opposition due to safety concerns, historical accidents, and associations with nuclear weapons, which must be addressed to gain widespread acceptance​ (IAEA)​.
  4. Economic Uncertainty: While SMRs promise cost savings, the actual economic benefits are yet to be fully realized at scale, and the costs associated with licensing, regulatory compliance, and decommissioning can be significant​ (Nuclear Energy Agency (NEA))​.

Conclusion

Small Modular Reactors offer significant benefits in terms of emission reductions and energy security, while also presenting manageable challenges such as waste management and regulatory approval. As technological advances continue, SMRs could play a crucial role in transitioning to a low-carbon future. Their deployment, however, requires careful management and robust regulatory frameworks to ensure safety and public acceptance.

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Magellan Sustainable Fund

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Strategy Equity Long Geography Global
Inception Dec 2020 Investors Retail

Magellan Core ESG Fund

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Emit Capital Climate Finance Equity Fund

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TobaccoAlcoholWeaponsFossil fuel exploration, mining and productionHuman rights abusesLabour rights violationsEnvironmental damageCompanies that engage in tax avoidance strategiesGamblingAdult entertainment/pornography

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Renewable energy & energy efficiencyClimate action & towards net zeroSustainable water managementCircular economy, reuse & recyclingGreen propertyBiodiversity preservation & conservationHealthy rivers & ocean ecosystemsDiversity & women's empowermentIndigenous business or cultural protectionSocial & community infrastructureSustainable transport
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