In a blow to confidence and PR for small modular nuclear reactor technology, NuScale this week said one of its projects has been cancelled, partly due to high inflation and interest rates. 

The Utah Associated Municipal Power Systems’ project said its NuScale Power small modular reactor (SMR) design was scrapped due to a lack of project subscriptions from energy companies in the western US.

The news is a blow to confidence in the sector, however, dozens more projects are underway around the world. 

Much of the news media have painted the setback as a major blow to nuclear – however, it appears that it is simply a matter of financial demand not being as had been projected previously along with inflationary material costs and high-interest rates pressures. 

Project plans had called for one 77-megawatt unit to begin operation in 2029, however, the project had been on shaky ground for some time.

“NuScale will continue with our other domestic and international customers to bring our American SMR technology to market and grow the U.S. nuclear manufacturing base, creating jobs across the U.S.,” said NuScale CEO John Hopkins, in a statement.