http://spectrum.ieee.org/energy/nuclear/the-forgotten-history-of-small-nuclear-reactors

The Forgotten History of Small Nuclear Reactors

Economics killed small nuclear power plants in the past--and probably
will keep doing so

By M.V. Ramana
Posted 27 Apr 2015 | 19:00 GMT

Photo: Everett Collection/Alamy

The Enrico Fermi Atomic Power Plant, Unit 1, in Newport, Mich. was an
early small nuclear reactor constructed with funding from the U.S.
Atomic Energy Commission. It reached criticality in 1963 and operated
until 1972, despite suffering a partial meltdown in 1966.


*A tantalizing proposition* has taken hold again in the nuclear
industry: that small nuclear reactors have economic and other
advantages over the standard-size ones being built today. The idea is
that by reducing the substantial financial risk of a full-scale
nuclear project, small reactors are the best option for kick-starting
a much-discussed revival of nuclear power.

Although concerns about climate change have led energy planners to
retain nuclear power as an option, the technology remains in stasis or
decline throughout the Americas and Europe. Two new nuclear projects
now under way in the United States were the first to be awarded
construction licenses in the country since the late 1970s. Globally,
nuclear power produced about 11 percent [PDF] of all electricity in
2013, down from its high of 17.6 percent in 1996, according to data
from the BP Statistical Review of World Energy 2014. In the United
States, the number of operating nuclear power plants has slipped below
100, with the recent shutdown of the Vermont Yankee plant.

A fundamental reason for this decline is indeed economic. Compared
with other types of electricity generation, nuclear power is
expensive. According to a 2014 report by the Wall Street advisory firm
Lazard, [PDF] the cost of generating a megawatt-hour of electricity
from a new nuclear reactor (without considering government subsidies,
including those for liability for severe accidents) is between US $92
and $132. Compare that with $61 to $87 for a natural-gas
combined-cycle plant, $37 to $81 for wind turbines, and $72 to $86 for
utility-scale solar. Nuclear's high costs result directly from the
very high costs of building a reactor--estimated by Lazard at $5.4
million to $8.3 million for each megawatt. These per-megawatt costs
translate into billions of dollars. For example, the latest estimate
for one of the two U.S. projects mentioned above--a pair of 1,117-MW
reactors being built near Jenkinsville, S.C.--is $11 billion.

These costs were acknowledged in a 2012 brochure for an industry
conference devoted to what are called small modular reactors (SMRs).
Noting the "huge billion dollar challenges" posed by traditional
nuclear plants, the brochure declared that "Small Modular Reactors are
the perfect solution to this problem by mitigating billions in
financial risk, growing incrementally with power demand and offering
shorter and easier construction schedules.... The SMR market is global
and extremely vast.... In short the power industry is crying out for
commercial SMR projects throughout the world."

If it is, the power industry is likely to be disappointed. Small
reactors, in fact, date back to the earliest days of atomic power, and
this long history shouldn't be overlooked as vendors tout new
generations of the technology. As the history makes clear, small
nuclear reactors would be neither as cheap nor as easy to build and
operate as their modern proponents are claiming they would be.

SMRs have outputs of anywhere from 10 to 300 MW. Compare that with the
860-MW average of the most popular reactor types now operating around
the world and the 980-MW average of the reactors under construction.
Although some of the dozens of new small reactor designs [PDF] take
novel approaches, many of them, especially the ones most likely to be
licensed for construction first, are just variations on the familiar
light-water reactor. The cost of SMRs can be kept low, proponents say,
in part by using factory-fabricated modules, which would require only
limited assembly at the site of the power plant itself.

img of panelboardimg of containerimg of coolant piping
Photos: Top: U.S. Navy/National Science Foundation (2); Bottom: U.S.
Navy Seabee Museum
The U.S. Navy's PM-3A Nuclear Power Plant at McMurdo Station was the
first and only nuclear reactor in Antarctica. It was shut down in
1972, after cracks and leaks developed in the containment vessel and
coolant piping. Eventually, the contaminated components and 14,400
metric tons of soil were shipped to California for disposal.
The basic idea actually dates to the 1940s, when the U.S. Air Force,
Army, and Navy each initiated R&D on various types of small reactors.
>From 1946 to 1961, the Air Force spent more than $1 billion trying to
build a reactor to power long-range bombers--to no avail. In canceling
the program, President John F. Kennedy wrote, "The possibility of
achieving a militarily useful aircraft in the foreseeable future is
still very remote."

The Navy had better success with developing nuclear power for its
aircraft carriers and submarines. But these have quite different
requirements from today's SMR proposals. A submarine reactor is
designed to operate under stressful conditions--to provide a burst of
power when the vessel is accelerating, for example. And unlike
civilian power plants, naval nuclear reactors don't have to compete
economically with other sources of power production. Their
overwhelming advantage is that they enable a submarine to remain at
sea for long periods of time without refueling.

Of the U.S. military's early small reactors, the ones that are most
comparable to what's being discussed today came from the Army Nuclear
Power Program. It led to the construction of eight small reactors.
Several of these were located in the same types of isolated spots that
are now being proposed as potentially attractive sites for SMRs:
Antarctica, Greenland, and remote Army bases. This vintage 1969 Army
documentary highlights the program's perceived virtues:



The experience at these sites was not encouraging. The PM-3A at
McMurdo Station in Antarctica, for example, "developed several
malfunctions, including leaks in its primary system [and] cracks in
the containment vessel that had to be welded," according to the
official history of the program by Lawrence H. Suid. The leaks from
the plant (which was owned and operated by the U.S. Navy) resulted in
significant contamination, and 14,400 metric tons of soil were removed
and shipped to Port Hueneme, a naval base north of Los Angeles, for
disposal.

Unlike the Navy's submarine reactors, the Army reactors could be
displaced by conventional diesel generators, and in 1976 the Army
canceled the program. As Suid writes, the Army concluded "that the
development of complex, compact nuclear plants of advanced design was
expensive and time consuming...that the costs of developing and
producing such plants are in fact so high that they can be justified
only if the reactor has a unique capability and fills a clearly
defined objective backed by the Department of Defense...[and that] the
Army and the Pentagon had to be prepared to furnish financial support
commensurate with the AEC's [U.S. Atomic Energy Commission's]
development effort on the nuclear side."

As it happened, the AEC (predecessor of the U.S. Department of Energy
and the Nuclear Regulatory Commission) was keenly interested in small
reactors. Starting in the 1950s, a number of civilian small reactors
were proposed in the United States, and eventually 17 reactors with
power outputs of less than 300 MW were commissioned. None of them are
in operation today.

Many of these projects were supported by the AEC, which promoted
nuclear power to U.S. utilities. Its first round of funding, announced
in January 1955, went toward small units that could serve as
"prototype reactors that would contribute to the development of large
reactors," wrote Wendy Allen in her 1977 report Nuclear Reactors for
Generating Electricity: U.S. Development From 1946 to 1963 [PDF].

Of the four proposals submitted, the AEC funded three: the Yankee (not
to be confused with the later and much larger Vermont Yankee),
Dresden-I, and Fermi-I. Of these, Fermi is the best known, because it
suffered a meltdown in 1966, which was colorfully described in John G.
Fuller's 1975 book We Almost Lost Detroit [PDF] and Gil Scott-Heron's
song of the same title. The other two reactors were relatively
successful in meeting the goals they aimed for. The 185-MW Yankee,
also known as Yankee Rowe, operated for 31 years; its decommissioning,
however, took 16 years and cost $608 million.

As mentioned, the AEC viewed these reactors as prototypes of bigger
things to come. It preferred large reactors to small ones for a simple
reason: economies of scale. Many of the expenses associated with
constructing and operating a reactor do not change in linear
proportion to the power generated. For instance, a 400-MW reactor
requires less than twice the quantity of concrete and steel to
construct as a 200-MW reactor, and it can be operated with fewer than
twice as many people. Writing in Science in 1961, a senior member of
the AEC worried that "competition [from fossil fuel plants] is indeed
formidable" and suggested that "with current pressurized-water reactor
technology, lower nuclear power costs can be achieved most readily
with large plants."

Belief in scale economies was so strong within the electrical industry
that in the early 1960s, some utilities banded together to absorb the
output of a large nuclear power plant.

In the face of this prevailing wisdom, proponents of small reactors
pinned their hopes on yet another popular commercial principle:
"economies of mass production." For instance, Samuel B. Morris, the
general manager and chief engineer of Los Angeles's Department of
Water and Power, traveled all the way to Geneva in 1955 to attend the
first International Conference on the Peaceful Uses of Atomic Energy.
There, he made a case for small reactors, arguing that because the
"number of small units...is many times the number of large units," there
could be "economy in development and repetitive manufacture" of the
small units.

Meanwhile, representatives from the smaller electric utilities,
including those in rural areas, argued that the AEC's focus on large
reactors effectively excluded them.

img of rr plantimg of Elk River plant shut down
Photos: Nuclear Regulatory Commission (2)
Electricity from the short-lived 22-megawatt Elk River Power Reactor
in Minnesota cost twice as much as that from a coal-fired plant. It
operated for just three and a half years and was shut down for good in
February 1968, after cracks appeared in the cooling system piping.
Confronted with such arguments and wanting to extend nuclear power to
regions that could not support large reactors, the AEC announced in
September 1955 a second round of funding. This time, small reactors
were the goal, not a means to an end. The commission received seven
proposals, of which it funded two: a 22-MW reactor in Elk River,
Minn., about 50 kilometers northwest of Minneapolis, and a 12-MW
reactor near the town of Piqua, Ohio. Two more reactors were later
added to the program: the Boiling Nuclear Superheater (Bonus) reactor
in Punta Higuera, Puerto Rico, and the La Crosse boiling water reactor
in Genoa, Wis.

Elk River was heralded by its operator as "Rural America's First
Atomic Power Plant." Much like the SMRs envisioned now, it was made
from prefabricated components, and its reactor vessel was compact
enough to be shipped to the site on a standard railroad flat car.

The reactor design was a variant of the boiling water reactor, which
is the second most common reactor type today. But its fuel was
unusual, consisting of a mixture of highly enriched uranium (which had
more of the chain-reacting isotope uranium-235 than was typical for
nuclear fuel) and thorium. Many experts considered thorium to be the
hope for nuclear power in the long run, in part because they feared
uranium would run out; to this day, some still believe thorium to be
the answer to all of nuclear energy's problems.

At the congressional hearings on the power demonstration program, O.N.
Gravgaard, president of the Rural Cooperative Power Association, which
was building the plant, stated, "We in rural power started out from
scratch, out of necessity. Power was not available several years ago....
We in rural power will do everything to make this reactor a financial
success."

Construction of Elk River began in January 1959, and the reactor
reached criticality in November 1962. But it wasn't declared as
operating commercially until July 1964, three and a half years behind
schedule. The lengthy delay resulted from various engineering
problems, including cracks in some components. According to
congressional hearings in 1967, Elk River's construction cost more
than doubled, from $6.2 million to $16 million. To be sure, other
reactors built then and later ended up costing at least three times
their initial estimates; in comparison, Elk River looked pretty good.

For a reactor that took more than five years to complete, Elk River
had a remarkably short operating life: just three and a half years.
The reactor was shut down for good in February 1968 after cracks
appeared in the cooling system piping. Faced with repair costs
estimated at $1 million, the cooperative chose not to fix it. A
spokesperson for the co-op told the Chicago Tribune that the group
"didn't feel we wanted to spend the money, especially since the
reactor has not been too economical because it is too small," adding
that the reactor had produced power at twice the cost of power from
coal-fired plants.

As noted by the nuclear physicist Walt Patterson in his 1976 book
Nuclear Power, Elk River became the first demonstration power reactor
to be decommissioned. Because the reactor vessel was quite
radioactive, decommissioning required the development of new
underwater torches that were manipulated remotely to cut up the thick
steel structure. The process took three years and cost $6.15 million,
which was almost the same figure as the initial estimate for
construction.

Dealing with the irradiated uranium-thorium fuel proved difficult too.
Eventually, the spent fuel was shipped to a reprocessing plant in
southern Italy.

In 1968, the same year Elk River shut down, the last of the AEC's
small reactors was connected to the grid: the 50-MW La Crosse boiling
water reactor. That plant operated for 18 years; by the end, its
electricity cost three times as much as that from the coal plant next
door, according to a 2012 news account about the disposal of the
plant's spent fuel. In the article, a former plant manager was quoted
as saying that the La Crosse plant "had a great design. The only
problem was it was too small."

Since then, not a single small reactor has been commissioned in the
United States. Indeed, reactor size in the United States ballooned,
reaching the 800- to 1,300-MW level by the mid-1970s.

img of Fort St. Vrain plant interior
Photo: Nuclear Regulatory Commission
The 330-Megawatt Fort St. Vrain Nuclear Generating Station in
Platteville, Colo. had a high-temperature gas-cooled reactor design
deemed to be "ultrasafe." However, it rarely operated at full capacity
and was shut down in 1989.
The one exception to this growth trend was an experimental 330-MW
high-temperature gas-cooled reactor, the Fort St. Vrain plant in
Platteville, Colo. It came on line in 1976, with a design promoted as
being ultrasafe. But the reactor was a failure. A New York Times
article about the 1988 decision to shut it down captured the gist of
the problem: "Safest Reactor Is Closing Because It Rarely Runs." Data
from the International Atomic Energy Agency showed that the plant
produced about 15 percent of the electricity it would have if it had
run at full capacity.

Small reactors were constructed in many other countries too, but all
of them served as stepping-stones to larger reactors. The country with
the most recent experience with small reactors is India, which until
recently was still constructing 220-MW heavy-water reactors. These fit
many of the characteristics of today's SMRs as envisioned by
proponents: modest size and a relatively standardized design that was
manufactured and operated by a single utility and its partners.
Nevertheless, the Indian atomic energy establishment decided to scale
these up to generate 700 MW or more. The bottom line: Economies of
scale were not peculiar to the United States.

What was and is peculiar to the United States and explains the
country's greater interest in small reactors is that its nuclear
plants are operated by private utilities; in most countries,
government-controlled organizations run the nuclear reactors. Private
utilities have more stringent budgets and face tighter capital
constraints, hence the attraction of a potentially cheaper nuclear
reactor. To the extent that other countries have been interested in
developing small reactors, it is mostly with an eye toward the export
market.

The dream of small nuclear reactors did not die with the 1960s. In the
1980s, the nuclear industry was reeling from high cost and schedule
overruns in reactor construction that had begun in the previous
decade. And so, proponents of nuclear power circled back to the idea
of going small.

A 1983 paper in the journal Energy by analyst Joe Egan offered his
vision of small, prefabricated reactors. "A novel, factory-based
approach to manufacturing reactors under 400-MWe size may alleviate
many of the pragmatic constraints on nuclear business," he wrote,
suggesting that "prefabrication and standardization of major plant
components could lower dollar-per-kilowatt capital costs to levels now
boasted by 1,000-MW models." Such factory assembly could further
reduce costs, he wrote, by reducing regulation, shortening
construction times, and avoiding quality issues with components.

"The reactors, once assembled on barges (or even railroad cars, in one
case), would be floated across oceans, up rivers, or be carted
cross-country to operating sites," Egan added. "There, purchasers
would anchor the plants and simply 'turn the key' for 200-400 MWe of
instant power."

This vision never materialized. No turnkey reactors were carted
cross-country or floated up rivers. Then, as earlier, they were deemed
too expensive.

Sadly, the nuclear industry continues to practice selective
remembrance and to push ideas that haven't worked. Once again, we see
history repeating itself in today's claims for small reactors--that the
demand will be large, that they will be cheap and quick to construct.

But nothing in the history of small nuclear reactors suggests that
they would be more economical than full-size ones. In fact, the record
is pretty clear: Without exception, small reactors cost too much for
the little electricity they produced, the result of both their low
output and their poor performance. In the end, as an analyst for
General Electric pronounced in 1966, "Nuclear power is a big-plant
business: it is most competitive in the large plant sizes." And if
large nuclear reactors are not competitive, it is unlikely that small
reactors will do any better. Worse, attempts to make them cheaper
might end up exacerbating nuclear power's other problems: production
of long-lived radioactive waste, linkage with nuclear weapons, and the
occasional catastrophic accident.

About the Author

M.V. Ramana is a researcher with the Nuclear Futures Laboratory and
the Program on Science and Global Security at Princeton University. In
this article, he writes about small nuclear reactors of the past, many
of which suffered from poor economics as well as technical problems.
"There was a lot of hope attached to those reactors," Ramana says.
"Given the claims being made about today's small reactor designs, the
history of the earlier ones is worth revisiting."

To Probe Further

The World Nuclear Industry Status Report 2014 [pdf], by Mycle
Schneider and Antony Froggatt, is part of a series published off and
on since 1992 that reviews worldwide developments in nuclear energy.
This latest report contains surveys of nuclear energy programs by
country and region, as well as overviews of the economics of nuclear
power, construction periods of reactors, the status of the Fukushima
site in the aftermath of the multiple reactor accidents, and a
comparison of how renewable energy and nuclear energy are performing.

Several papers coauthored by the author examine the potential of small
nuclear reactors to overcome the main challenges of nuclear power:
nuclear weapons proliferation, the potential for catastrophic
accidents, the production of radioactive waste, and economic
competitiveness. The articles are "Resource Requirements and
Proliferation Risks Associated with Small Modular Reactors," by
Alexander Glaser, Laura Berzak Hopkins, and M.V. Ramana, in Nuclear
Technology 184: 121-29, 2013; "Licensing Small Modular Reactors"[pdf]
by M.V. Ramana, Laura Berzak Hopkins, and Alexander Glaser, in Energy
61: 555-64, 2013; and "One Size Doesn't Fit All: Social Priorities and
Technical Conflicts for Small Modular Reactors," by M.V. Ramana and
Zia Mian, in Energy Research & Social Science 2 (June): 115-24, 2014.

In Power Plant Cost Escalation: Nuclear and Coal Capital Costs,
Regulation, and Economics [pdf], Charles Komanoff offers a detailed
analysis of the escalating costs of nuclear reactors and coal plants
in the 1970s in the United States. His study, published in 1981, shows
that, contrary to what was then the conventional view, nuclear costs
increased at roughly twice the rate of coal plants' costs, in real,
inflation-adjusted terms. More than three decades later, these results
still offer insights for understanding why nuclear costs keep
increasing.

Journalist Stephanie Cooke has covered the nuclear beat since the
1980s. Her 2009 book In Mortal Hands: A Cautionary History of the
Nuclear Age (New York: Bloomsbury, 2009) is a compelling account of
the development of nuclear power and of nuclear weapons and the close
connections between the two pursuits. Particularly relevant to this
article is the book's coverage of the hopes surrounding atomic energy
and resultant policy actions promoting nuclear reactors in the 1950s
and 1960s, as well as the various means used by proponents to make
these early power plants seem economically competitive.

M.V. Ramana's The Power of Promise: Examining Nuclear Energy in India
(New Delhi: Penguin India, 2012) recounts the history of India's
adoption of nuclear energy, including the country's experience with
constructing smaller 220-megawatt heavy-water reactors. Despite a
standardized approach to designing, constructing, and operating these
plants, many of them suffered lengthy delays and cost overruns,
producing electricity at costs significantly higher than that from
coal-based thermal power plants.

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Peace Is Doable

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