Tian Jiashu: Development of Small Modular Reactor (SMR) Technology and Investment Opportunities | Titanium Capital New Energy Team

Since its peaceful utilization began in the 1950s, nuclear energy has evolved through four generations of technological pathways. The first generation comprised prototype reactors developed by the U.S. and the Soviet Union during the 1950s–1960s; The second generation consisted of large-scale commercial nuclear power plants deployed globally from the 1970s to the 1990s; however, the industry entered a freeze following the 1979 Three Mile Island accident; The third generation, launched after the 1990s with enhanced safety as its core objective, introduced reactor designs such as the AP1000, EPR, and Hualong One. The 2011 Fukushima accident further spurred development of an enhanced 'Generation III+'—featuring improved resistance to large aircraft impact and dual containment structures—raising construction costs by 10–20%. The concept of Generation IV reactors was initiated in 2000 by the U.S. Department of Energy in collaboration with 27 countries, targeting deployment between 2030 and 2060. Its six candidate reactor types aim for greater safety, economics, sustainability, and proliferation resistance: sodium-cooled fast reactors (SFR), lead-cooled fast reactors (LFR), gas-cooled fast reactors (GFR), very high-temperature gas-cooled reactors (VHTR), supercritical water-cooled reactors (SCWR), and molten salt reactors (MSR). Among these: — VHTRs achieve outlet temperatures of 950–1000 °C, enabling direct thermochemical seawater splitting for hydrogen production; — LFRs operate at ~850 °C and offer strong potential for miniaturization; — MSRs run at 700–800 °C, offering inherent safety but facing significant corrosion challenges; — SFRs operate at ~550 °C and are closest to industrial demonstration; — SCWRs benefit from good technology inheritance but have seen declining interest; — GFRs have limited adoption and low momentum in development. Currently, only pressurized water reactor (PWR)-based systems are commercially viable at scale; most Gen IV concepts remain in basic research or demonstration-validation phases. As Gen III units grow increasingly large and expensive, many smaller countries and utilities struggle to afford them. In response, the U.S. proposed the Small Modular Reactor (SMR) concept in 2003. After nearly two decades of conceptual and technical validation, global SMR investment surged rapidly between 2022 and 2025. There is international consensus that 2025–2030 marks the commercial demonstration phase for SMRs, while 2030–2040 will be the rollout period—ushering in a decade-long opportunity for small and micro-reactors. China already possesses mature industrial capabilities in PWR technology and continues advancing frontier technologies such as high-temperature gas-cooled reactors. Technical Advantages and Application Prospects of Small Modular Reactors The International Atomic Energy Agency (IAEA) classifies SMRs as advanced nuclear energy systems—defined as compact, modular designs based on Gen III+ and Gen IV technologies, with electrical output below 300 MWe, including microreactors (<10 MWe). In terms of technical adaptability: water-cooled reactors can be scaled down but not easily miniaturized; gas-cooled reactors, liquid-metal-cooled fast-neutron reactors, and molten-salt reactors, by contrast, support both small and micro-scale configurations. According to the International Nuclear Energy Agency’s July 2024 report, there are currently 127 publicly disclosed SMR design concepts worldwide, with 51 undergoing licensing review and 81% backed by committed investors—yet only seven are either operational or under construction. Notably, Russia’s floating nuclear power plant and China’s Shidao Bay High-Temperature Gas-Cooled Reactor Demonstration Project are already operational; China’s ‘Linglong One’ (ACP100) is scheduled for completion in 2026, becoming the world’s first land-based PWR SMR demonstration project. In terms of technological maturity, water-cooled reactors (24 designs) and high-temperature gas-cooled reactors (18 designs) lead due to existing demonstration projects, whereas metal-cooled and molten-salt reactors remain largely in basic research or prototype development stages. 1. Key Advantages of Small Modular Reactors

World Nuclear Association Releases ‘2026 World Nuclear Outlook Report’ (with Download Link)

Moreover, the report specifically highlights the emergence of new nuclear energy nations. Beyond traditional nuclear powers, countries such as Bangladesh, Egypt, and Turkey—the so-called ‘new entrants’—are rapidly building their domestic nuclear industrial systems by importing foreign technology. By 2050, nuclear capacity in these emerging countries is projected to reach 157 gigawatts (GW). For them, nuclear energy is not merely a source of clean electricity—it symbolizes industrial upgrading and national energy sovereignty. If planning-level discontinuities represent a latent concern, then engineering-level challenges constitute the imminent ‘gray rhino.’ Through rigorous data modeling, the report issues the sternest possible warning to the global nuclear industry: to meet its 2050 targets, the pace of global nuclear construction must undergo a qualitative leap over the next two decades. According to the WNA’s calculations, annual nuclear grid connection capacity must rise gradually—from an average of 14.4 GW per year during 2026–2030, to 49.2 GW per year during 2036–2040, and ultimately peak at 65.3 GW per year during 2046–2050. What does 65.3 GW signify? It equates to commissioning approximately 40–50 large nuclear reactors annually—a rate more than four times today’s construction capacity and double the peak global nuclear construction rate of the 1980s (~30 GW/year). This demands nothing short of a full-scale, wartime-style mobilization of the global nuclear supply chain. Many long-established nuclear enterprises in Europe and North America have seen their supply chains shrink and suffer severe talent shortages. In contrast, although China and Russia have maintained continuous construction capability, their combined capacity remains insufficient to meet the tripling demand projected globally. Fuel cycle challenges are equally daunting. While the report notes uranium resources are geographically diversified—sufficiently supplied by Australia, Canada, Kazakhstan, and Namibia—and fuel costs constitute only a tiny fraction of total nuclear generation costs (granting nuclear power natural immunity to commodity price volatility), bottlenecks persist in enrichment and fabrication. Against a backdrop of intensifying geopolitical tensions, Western countries are urgently seeking to decouple from Russia’s nuclear fuel supply chain. Such restructuring inevitably incurs short-term cost increases and reduced logistics efficiency. The report also underscores the role of Small Modular Reactors (SMRs). Though widely lauded in media and capital markets as a ‘silver bullet’ solution to the long timelines and high capital requirements of conventional large-scale nuclear plants, the WNA adopts a pragmatic and cautious stance. As of early 2026, only a handful of SMR projects are under construction globally—including China’s ‘Linglong One’ (ACP100) and Russia’s RITM-200S—while the vast majority of SMR designs remain stuck in licensing review or prototype design phases. The report concludes that SMRs are unlikely to become a major driver of installed capacity growth before 2035. Until then, large pressurized water reactors (PWRs) will remain the undisputed backbone of global nuclear expansion, accounting for the overwhelming majority of current construction capacity. Beyond technology and engineering, financing remains another ‘black hand’ throttling nuclear renaissance.

EIB Breaks 40-Year Nuclear Taboo With €40M Finnish SMR Investment

Sep 14, 2026

The European Investment Bank invested €40 million in Finnish startup Steady Energy for small modular reactors, marking its first nuclear funding since 1987 to support low-carbon energy security.

bloomberg

2026-09-14

EIB Breaks 40-Year Nuclear Taboo With €40M Finnish SMR Investment

EIB Breaks 40-Year Nuclear Taboo With €40M Finnish SMR Investment

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