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Webbe-Wood, David
(2024).
DOI: https://doi.org/10.21954/ou.ro.00017407
Abstract
The proponents of nuclear fusion believe that a small modular approach has the potential to achieve a viable source of energy in timescales smaller than those projected for the large scale multinational ITER/DEMO programme. If the numerous technical challenges can be overcome, the question still remains as to whether fusion small modular reactors (SMRs) will be commercially viable. This thesis aims to provide insight into this question and to identify whether approaches other than the generation of electricity to the grid have the potential to increase the value of a fusion SMR or a fleet of SMRs to a developer.
The work has three main components. Firstly, the Net Present Value (SMR) of a fusion SMR supplying electricity for sale to the grid in the UK was evaluated. This showed that there are combinations of electricity prices, capital cost and discount rates that will result in positive NPVs.
In the second component of the work, an existing approach to engineering flexibilities / real options has been extended and applied to the production of hydrogen from methane with carbon capture and storage. The results of this work demonstrate that the application of engineering flexibilities / real options has the potential to increase the value of a project.
In the final stage of the thesis, an engineering flexibility / real options approach has been combined with a portfolio approach to a fleet of fusion SMRs. This demonstrated that this approach has the potential to increase the value of a fleet of fusion SMRs to a developer.
The thesis has demonstrated that it is possible that fusion SMRs may be commercially viable. It has also demonstrated that the use of techniques such as engineering flexibilities and portfolio theory has the potential to increase the value to a developer of a fleet of fusion SMRs based on a tokomak design.
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