Has a decision been made on small modular reactors? If so, questions  remain

ArmInfo. Following US Vice President J.D. Vance yesterday's statement, one can conclude that Armenia's choice regarding small modular reactors has been made, and it's in favor of the United States.

According to ArmInfo news agency energy analyst Alexander Avanesov,  the US Vice President announced yesterday that, as part of the  nuclear energy agreement, the US will supply Armenia with small  modular reactor technology worth approximately $9 billion. It is  envisaged that initially equipment worth $5 billion will be supplied,  with the remaining $4 billion coming from long-term contracts for  fuel supplies and reactor maintenance. "This means the United States  will supply Armenia with small modular reactors, which will be  delivered here. The United States very rarely transfers its  technology to other countries so confidently," the US Vice President  stated, adding that this means more reliable energy security for both  the United States and Armenia. It will also create numerous new jobs  in the United States.  First of all,  the question arises  about the  funding sources. Armenia's total state budget revenue is just over $8  billion, of which it's difficult to allocate $5 billion to purchasing  equipment, even in the long term.  There's no hope of US government  charity in this matter. Most likely, Vance indicated the project's  cost, which the Armenian side will have to pay for.

The second issue is about the logistics of fuel supply. Who will  supply, by which route, at what price, and how will the new SMR  affect the final tariff for Armenian consumers-all these issues  require clarification.  With Russia, which supplies fuel for the  existing Armenian Nuclear Power Plant, the logistics of supplies are  well-established. Will the supplies be made from the United States  itself, which purchases uranium from the Russian Federation, or will  a connection be established with the Russian company TVEL, one of the  world's leading nuclear fuel companies, providing 17% of global  nuclear power plant needs? If from the United States, it's easy to  calculate the cost to Armenian taxpayers.  But the main question  remains open: what specific small modular reactor is the United  States willing to offer Armenia? In general, SMRs utilize nuclear  fuel more efficiently and have safety features based on passive  systems-natural circulation, convection, gravity, and  self-pressurization-which reduce the risk of accidents. Simply put,  SMRs are safer and more efficient than older reactors. But are there  any operating such reactors in the United States? The answer is  clear: not yet, but the Americans are providing the technology.  Oregon-based Nu-Scale Power will provide Romania with nuclear  technology for an SMR project supported by the G7 Global  Infrastructure Investment Partnership.

In addition to Armenia, the United States has signed framework  agreements for cooperation in the peaceful uses of nuclear energy  with 29 other countries. Specifically, the United States signed  agreements with the Philippines (in November 2023) and Singapore (in  July 2024), allowing these countries to use American nuclear energy  for peaceful purposes, such as building SMR reactors or generating  electricity. However, it should be reiterated that this is only a  matter of technology, not the reactors themselves, tested "on the  ground." As of early 2026, the United States itself has no operating  commercial SMRs, despite actively developing and licensing these  technologies. Large projects, such as those by NuScale Power, have  faced cancellation due to high costs, but work continues, including  the Janus program for military bases. Although NuScale Power received  design certification, construction of the first plant in Utah was  abandoned. Other projects are under development, such as the BWRX-300  from GE Hitachi.

It's worth noting that the US Department of Energy is investing  hundreds of millions of dollars in SMR development, planning their  active deployment. The country plans to use SMRs to achieve carbon  neutrality by 2050. However, Russia and China are currently leading  the way in commissioning SMRs.  Russia, which has successfully  operated the Academik Lomonosov floating nuclear power plant (each  with a 35 MW reactor) since 2020, is also developing its land-based  counterpart. Work is also underway on the RITM-200N reactor (55 MW),  designed to supply power to remote regions, and the VK-300 boiling  water reactor with a capacity of 250 MW.

Earlier, the Armenian side stated that a final decision on SMRs would  be made within 1-1.5 years. Projects from five countries are being  considered: Russia, China, the US, South Korea, and France. The  country's authorities are leaning toward the idea of constructing a  nuclear power plant with several small modular reactors, the total  capacity of which should not exceed 600 MW.  Earlier, Armenian Prime  Minister Nikol Pashinyan, speaking about the advantages of SMRs, had  emphasized their safety. Specifically, in the event of an accident,  evacuation of the population is not required.

It is worth noting that in July 2023, the Armenian government sent a  working group to the United States to study American small modular  reactor technologies. Apparently, the results of that trip led to the  current agreement between Armenia and the United States on nuclear  energy cooperation. The project is being considered in the context of  diversifying energy partners and reducing dependence on Russia,  sparking discussions about geoeconomic risks.