ESC backs new nuclear but says costs must fall

The construction of a new generation of dual-purpose nuclear stations, which could switch between generating electricity and producing hydrogen, has been backed in a new report by the Energy Systems Catapult (ESC).

The group’s Nuclear for Net Zero report says that while wind will be the main source of future electricity generation, up to 50GW of nuclear power may be needed by 2050 to contribute both to the decarbonisation of power and hydrogen production.

Trying to reach net zero without any new nuclear would put the target at risk unnecessarily and “potentially” make the shift to a low-carbon economy more expensive, the report found.

Seeking to achieve the decarbonisation without nuclear power, which it says is unlikely, might require significant deployment of bioenergy and land use change, as well as a vast quantity of renewable energy.

But it says that cost reduction of nuclear construction is a necessary pre-requisite of this expanded rollout, urging the UK to commit to a 10GW pipeline of new large nuclear reactors beyond EDF’s current plant at Hinkley Point C.

According to ESC’s analysis, next generation nuclear plants coupled with higher temperature, more efficient hydrogen production technology can be a cost-effective source of additional hydrogen.

Such plants would shift from generating electricity when reserve margins are low and prices high, to producing hydrogen when the opposite is the case.

Advanced nuclear has the potential to generate power for hydrogen production at greater energy density, lower costs, and much reduced land take vis-a-vis other low carbon technologies for producing the zero-emissions gas.

These are steam methane reformation capacity with carbon capture storage (CCS), which will require increased tree and biomass planting, or lower temperature electrolysis powered by renewable generation.

The report says that a programme to build nuclear capacity, which it describes as a “low or no regret” decision, will cut costs more effectively than a series of unconnected projects provided length and costs continue to fall as developers make greater use of replicated designs .

The report also sees a role for Small Modular Reactors to supply decarbonised heat and hot water for city-scale district heating systems.

According to the report, nuclear plants could be a “very cost-effective” source of lower grade heat, giving as an example the UK’s pioneering Calder Hall Magnox power station.

All new UK commercial reactors should be designed and configured so that they are capable of supplying district heating, it says.

ESC’s nuclear practice manager, Mike Middleton said: “Nuclear doesn’t need to be expensive if we take the right approach.

“Provided that costs reduce in line with the analysis we have reported, the deployment decision regarding new large nuclear is not whether to start, but when to stop.”