The U.S. Departments of Energy (DOE) and Defense (DoD) have successfully transported a small nuclear reactor from California to Utah, signaling a significant step towards the potential deployment of small and micro nuclear reactors (SMRs) for military and civilian applications. This demonstration involved a microreactor developed by California-based Valar Atomics, which was flown to Hill Air Force Base on a C-17 aircraft. Notably, the reactor was transported without nuclear fuel.
Michael Duffey, Under Secretary of Defense for Acquisition and Sustainment, expressed optimism about the initiative, stating, “This gets us closer to deploying nuclear power when and where it is needed to give our nation’s warfighters the tools to win in battle.” He was accompanied on the flight by Chris Wright, Secretary of Energy.
Strategic Deployment through the Janus Program
Last October, the U.S. military launched the Janus Program, a strategic initiative focused on deploying advanced nuclear microreactors at military installations to provide secure and on-demand power. The program collaborates with the Defense Innovation Unit (DIU), utilizing a commercial build-own-operate model aimed at delivering 24/7 clean energy. This approach is designed to protect military bases from grid failures and cyber threats.
The Army’s method resembles NASA’s Commercial Orbital Transportation Services, employing a milestone-based, private-sector-led model to mitigate risk and accelerate the adoption of SMR technology. The goal is to transition from prototype development to the production of commercially available, factory-built microreactors capable of generating less than 20 megawatts. These reactors are intended to power data centers, critical infrastructure, and military bases.
To support this initiative, the U.S. Department of Energy will offer technical assistance for the fuel cycle, while the Office of the Assistant Secretary of the Army for Installations, Energy and Environment will oversee implementation and regulatory compliance. Nine sites have been identified for potential installations, including Fort Liberty (formerly Bragg), Fort Cavazos (formerly Hood), and Fort Drum.
Economic Viability and Environmental Concerns
Despite the potential benefits, SMRs face substantial scrutiny regarding their economic viability and environmental impact. Edwin Lyman, director of nuclear power safety at the Union of Concerned Scientists, criticized the initiative, stating, “There is no business case for microreactors, which— even if they work as designed— will produce electricity at a far higher cost than large nuclear reactors, not to mention renewables like wind or solar.”
Research indicates that generating electricity from these innovative reactors is likely to be more expensive than from large nuclear plants. For instance, the now-cancelled NuScale Power project in Idaho had projected costs exceeding $20,000 per kilowatt, nearly double the $10,784 per kilowatt for the Vogtle Project in Georgia, which itself has been labeled too costly. NuScale Power was halted in November 2023 due to escalating expenses, high inflation, and rising interest rates, leading utility partners to withdraw.
The Levelized Cost of Energy (LCOE) for conventional reactors typically ranges from $50 to $90 per megawatt-hour (MWh), whereas estimates for SMRs fall between $80 and $150 per MWh. In contrast, renewable energy sources present a more economical alternative, with the global average LCOE for utility-scale solar photovoltaic systems at $39 to $66 per MWh and onshore wind averaging $48 to $75 per MWh.
Additionally, environmental and safety issues continue to challenge the SMR sector. A 2022 study from Stanford University and the University of British Columbia found that SMRs could produce 30 to 35 times more low-to-intermediate level radioactive waste per unit of energy compared to conventional reactors. The study also indicated that SMRs might generate up to five times more spent nuclear fuel, primarily due to lower fuel burnup and increased neutron leakage from their compact cores.
The proliferation risks associated with SMRs are also notable. Many advanced designs require High-Assay Low-Enriched Uranium (HALEU), which is enriched to nearly 20%. This raises concerns about nuclear proliferation and reliance on countries such as Russia for supply.
As challenges mount, the SMR sector has seen a decline in investor confidence. The harsh realities of SMR development, coupled with the fact that these companies have yet to generate any revenues, have triggered a sell-off across the industry. For instance, NuScale Power’s stock has plummeted nearly 60% from its 2025 highs.
With the complexities and uncertainties surrounding SMR technology, the coming years will be pivotal in determining whether this approach can gain traction in the energy market.
