In the face of global climate change challenges and the urgent need for clean and low-carbon energy in the large-scale technology industry, a global boom in the development of small nuclear reactors is underway. This trend has also been mirrored in China, where domestic enterprises are actively exploring the potential of small nuclear reactors, with leading information technology and transportation companies collaborating with nuclear energy enterprises on feasibility studies for demonstration projects that aim to power data centers with small nuclear reactors, as well as the research and development of integrated vehicle-mounted micro-power reactors. This was revealed by Wang Binghua, a specially invited advisor to the Expert Committee of the China Nuclear Energy Industry Association and the former Chairman of State Power Investment Corporation Limited, at the 2025 Spring International Forum on Nuclear Energy Sustainable Development hosted by the China Nuclear Energy Industry Association.

The phenomenon of turning to small nuclear reactors is not unique to China. For instance, last October, Google announced a power purchase agreement with Kairos Power, which plans to deploy seven small modular reactors around 2030 to meet Google’s electricity demands. The global interest in small nuclear reactors has also been reflected in the stock market. Throughout 2024, nuclear power stocks in the US market performed strongly. NANO Nuclear Energy, a nuclear energy company, saw its share price surge by nearly 650% after going public in May last year. Nuscale Power, a small modular nuclear power supplier, witnessed its share price skyrocket by nearly 950% at one point. Vistra energy, a power giant, saw its share price increase by more than 320% at its peak, while Oklo Inc and Constellation Energy also doubled their share prices.

According to the International Atomic Energy Agency (IAEA), reactors with an electric power output of less than 300,000 kilowatts are defined as small reactors, and those with an electric power output of no more than 15,000 kilowatts are referred to as microreactors.

In recent years, small reactors have become a research hotspot for nuclear power powerhouse countries such as the United States, Russia, and France. In March 2025, the US Department of Energy restarted a $900 million funding program, focusing on supporting the commercial deployment of modular small light water reactors. Tech giants like Google, Oracle, and Amazon have invested in small modular nuclear reactors to provide carbon-free electricity for their data centers. In February 2024, the European Commission announced the establishment of a small reactor industry alliance, with the core goal of accelerating the research, development, and commercialization of small reactor technologies in Europe and achieving the deployment of the first batch of small reactors by the early 2030s. Russia has signed the first land-based small reactor export agreement with Uzbekistan and is vigorously promoting the export of its floating nuclear power plant technology.

According to IAEA statistics, there are currently more than 80 design and conceptual schemes for small reactors globally. These designs are generally based on third-generation nuclear power technologies and partially draw on the technical concepts of fourth-generation nuclear energy systems. Technologically, they can be classified into six categories: water-cooled land-based and sea-based reactors dominated by pressurized water reactors account for 43.1%, gas-cooled reactors account for 19.4%, fast neutron reactors account for 15.3% (70% of which are lead-cooled fast reactors), molten salt reactors account for 13.9%, and others account for 8.3%. Approximately 70% of the small reactor technologies that can be deployed in the near future adopt integrated advanced pressurized water reactor technologies.

China has also achieved significant progress in the development of small reactor technologies, leading in the deployment of land-based small pressurized water reactors. Currently, six groups and institutions, including China National Nuclear Corporation (CNNC), China General Nuclear Power Group (CGN), State Power Investment Corporation (SPIC), the Chinese Academy of Sciences (CAS), Tsinghua University, and China Shipbuilding Industry Corporation (CSIC), are engaged in small reactor development. China has developed 12 types of small reactor technologies with different purposes, power ratings, and reactor types, mainly including land-based water reactors, marine water reactors, high-temperature gas-cooled reactors, fast reactors, and molten salt reactors.

Among them, the “Linglong One” ACP100 developed by CNNC is in the engineering demonstration construction phase and is expected to be completed in 2026. It is the world’s first land-based commercial modular small reactor. The 200MWe high-temperature gas-cooled reactor developed by Tsinghua University was put into commercial operation at the end of 2023. The 2MWt thorium-based molten salt experimental reactor developed by CAS achieved full power operation in 2024. Meanwhile, the preliminary work for projects such as the integrated heating reactor of SPIC, the NHR200-II low-temperature heating reactor jointly developed by CGN and Tsinghua University, and the Yanlong (DHR-400) pool-type low-temperature heating reactor developed by CNNC is being actively and orderly promoted. CGN and CNNC have also developed marine floating reactor models such as ACPR50S, ACP100S, and ACP25S.

Many industry insiders have pointed out that, given the high coverage of large-capacity power grids in China, the single power generation application scenario of small reactors has limitations and lacks market competitiveness compared with large nuclear power plants. However, small reactors have their unique applications.

Wang Binghua believes that the expected target markets for the large-scale deployment of small reactors mainly include the replacement of small and medium-sized coal-fired cogeneration units, regional heating in northern cities, industrial steam supply through the coupling of nuclear energy and the petrochemical industry, energy supply for marine and island development, meeting the needs of special users, and exports.

The US Department of Energy’s report, “Benefits and Challenges of Converting Retired Coal-Fired Power Plants to Nuclear Power Plants,” proposed that hundreds of coal-fired power plants in the US could be converted into nuclear power plants, which would strongly promote the goal of achieving net-zero emissions by 2050 if successful. “Around 2030, a peak period of the expiration of the service life of coal-fired power units in China will occur, and some old and small units will gradually be phased out. In recent years, Huaneng Group, State Power Investment Group, China General Nuclear Power Group, and China Energy Investment Corporation have all carried out preliminary research and feasibility studies on the construction of small reactor units at the original thermal power plant sites.”

Currently, the total heating area of urban areas in northern China exceeds 18 billion square meters, with fossil energy heating accounting for more than 80%. To achieve the goals of carbon peak and carbon neutrality, it is estimated that by 2060, the scale of fossil energy heating that needs to be replaced will reach 11 billion square meters. To this end, China has developed various types of low-temperature heating reactors, such as pool reactors, which can meet the needs of clean heating in northern urban areas on a large scale. In addition, industrial steam supply through the “coupling of nuclear energy and the petrochemical industry” will help accelerate the green and low-carbon transformation of the petrochemical industry.

Moreover, China has formulated development policies and plans for islands, and floating nuclear power plants or island nuclear power plants are important strategic choices for island energy supply. Wang Binghua said that to develop marine islands, energy construction needs to be strengthened. Relevant departments and units in China are actively accelerating the resolution of the contradiction between market demand and technical supply and giving full play to the flexibility advantages of small reactors in the marine island energy market.

Regarding the export market, “Considering that most of the countries participating in the Belt and Road Initiative have relatively small land areas and moderate population sizes, large nuclear power plants may not be suitable. Small reactors, on the other hand, can better meet their grid capacities and regional electricity and heating needs.” He suggested taking small reactors as an important means to implement China’s nuclear power “going global” strategy. For Belt and Road countries with small grid capacities that are not suitable for building large nuclear power units but are interested in developing nuclear power, China should conduct promotional activities through international diplomatic efforts, carry out potential market assessments and technical demand research as soon as possible, and accelerate the formation of small reactor models that meet the needs of small and medium-sized grid countries, special regional energy use, and non-power generation fields.

Wang Binghua said that, overall, at the current stage, the construction cost per kilowatt of small modular reactors is approximately twice that of large commercial pressurized water reactor nuclear power projects. Preliminary calculations show that the levelized electricity and heat prices have an advantage over natural gas power generation and heating. In the future, with mass production and large-scale development, their market competitiveness will be significantly enhanced.