Economic Evaluation of Hydrogen Production Using a Small Modular Nuclear Reactor (SMR) as an Energy Source

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Original abstract

Hydrogen is an important energy vector for the global energy transition. Due to its low carbon emissions, it has become a central subject of study for major nations. Small modular nuclear reactors (SMRs) represent an innovative approach in the nuclear field. This technology provides greater versatility, safety, and lower costs for energy production on a reduced scale compared with large nuclear reactors (LRs). This paper presents an economic evaluation of hydrogen production using a Small Modular Nuclear Reactor (SMR) as the primary energy source. The methodology uses the Hydrogen Economic Evaluation Programme (HEEP) software provided by the International Atomic Energy Agency (IAEA) to estimate the levelized cost of hydrogen production (LCOH, in USD/kg of H2) using SMRs. The model considers intrinsic characteristics of the power generation plant and of the Polymer Electrolyte Membrane (PEM) plant, the latter supplied by Hytron/NEA. To validate the methodology, it was necessary to evaluate the hydrogen production costs for a large reactor on the market, the AP1000 from Westinghouse. Based on these results, a 77 MWe NuScale SMR built under the same inflationary conditions as the LR was evaluated to avoid significant distortions in the results. For a realistic evaluation, cost studies provided by international institutions such as MIT and the U.S. Department of Energy`s Nuclear Energy Administration (DOE/NEA), and, when possible, by NuScale and Westinghouse, the companies responsible for the reactors being analyzed, were used. Preliminary results show that SMRs present significant competitiveness in terms of levelized cost of hydrogen compared to alternative clean energy sources such as renewable, including solar photovoltaic, solar thermal, and wind power. Due to the versatile, scalable, continuous, predictable, and dispatchable generation profile of SMRs, the cost difference found is negligible. This validates the potential of nuclear technology, which plays a strategic role in the energy transition both globally and in Brazil, and reinforces the importance of in-depth assessments on the subject.

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