A decade ago, George Osborne set out in his spending review plans for the UK to be a global leader in a new kind of nuclear technology: small modular reactors (SMRs).
The arguments spelled out by the then-chancellor in favour of Britain throwing its weight behind this type of affordable, low-carbon energy were strong then. Today, a confluence of factors – including the pursuit of net zero goals, escalating energy prices and the notoriously energy-intensive data centres which are powering global artificial intelligence (AI) requirements – has made this an opportunity that the country must seize with both hands.
Rethinking Nuclear
While conventional nuclear has come to be synonymous with over-runs and risk, SMRs “rethink” the manufacturing and construction methods that are involved. According to Paul Stein, chairman of Rolls-Royce SMR, which has been at the forefront of the technology development in the UK, the move “heralds a new approach to the cost of nuclear […] by extensive use of digital twinning while keeping the physics package exactly the same”.
SMRs, with their potential for modular design, scalability and increased speed of build compared to large, conventional reactors, offer a compelling alternative to conventional power plants. The reduced footprint and potential for distributed deployment make them ideally suited to providing localised, reliable and carbon-free power directly to data centres, for example.
The UK has several strong advantages in SMR development. Firstly, the county is in a position to supply most of the components required. Organisations like Rolls-Royce have gained traction for their designs and due to the UK’s legacy in traditional nuclear, there is an experienced workforce and a match-ready nuclear supply chain ready to be utilised.
Further bolstering the UK’s position in the field, the prime minister recently announced proposals to “push past the nimbyism” and change the planning rules to make it easier for SMRs to be built in Britain.
Navigating the Financial Roadblock
However, the primary hurdle to wider SMR adoption remains the perceived financial risk. This is evidenced by Amazon-backed nuclear power developer X-Energy, which has threatened to withdraw from building new nuclear reactors in the UK unless the government sets out a clear financial route to market.
Investors need assurance that these reactors will be profitable and provide a sustainable return on their investment. De-risking these new projects is therefore critical and applying a digital-first approach can help achieve this.
A digital-first strategy, coupled with advanced reliable generation technologies and off-site manufacturing opportunities, could ensure an economically solid model to build and operate a nuclear power plant over its lifetime. So, what does it look like?
Digital-First
Traditionally with a major programme build, the first partners brought onto the pitch are an engineering house and/or an Engineering, Procurement, Construction (EPC) partner.
From there, the programme is developed with focus on the design and licensing stages.  Conventional nuclear programmes which have followed this process, as the IEA stated in its 2022 report, have been “plagued [by] […] rising construction costs and lead times”. At the time of report publication, findings showed nuclear reactors in operation around the world had taken an average of seven years to build. However, 15 of them had taken 15 years or more.
Back in 2015, the proposals for Hinkley Point C were deemed so unrealistic that they were likened to attempting to “build a cathedral within a cathedral”.
It’s time For a New Approach
This new way of doing nuclear – SMR – needs a new approach. Digital partners must be introduced from the start, meaning they are ready to work alongside all the partners (including the client) to define the digital journey in line with the overall programme.
The digital partners must also be allowed to invest and be part of the digitally enabled journey for the long term, bringing inspiration and new ways of working from their multi-sector experience. Early on, the principles of data ownership, IP and value sharing should be agreed with both the design and technology partners.
The data journey should be planned and core digital platforms agreed on from the outset, as well as responsibility for ownership and management of the data. Digital continuity from start to finish is an absolute must.
A digital-first approach of this kind will make discussions with regulators and stakeholders clearer and easier, while supporting long-term assurance. As sectors such as aerospace have proven, the more upfront design, testing, sequencing and modelling completed in the virtual world before manufacturing, installation and construction, the better the outcome.
As governments and policy makers warm to nuclear again, attention is focused on SMRs and their potential. A global race is underway to advance within this exciting space.
Let’s leverage our expertise, unique advantages and digital know-how to lead the way forward.