A new study suggests small modular reactors (SMRs) are more commercially viable for industrial uses like hydrogen production for ammonia, refining, and steelmaking, rather than competing in wholesale electricity markets. The study notes that SMRs struggle to match renewables and large reactors on grid power costs, but can offer reliable, low-carbon heat and power for industrial processes. The outcome may depend on the U.S. hydrogen production tax credit, which could improve the economics for SMR-driven hydrogen. This focus on industrial applications could reshape where nuclear technology gets deployed first, with potential implications for carbon reduction in hard-to-abate sectors.
