How Small Modular Reactors Could Reshape How Manufacturers Think About Energy

Rising power demand, constrained grid capacity, and corporate decarbonization goals are reshaping how manufacturers think about energy. Across the U.S., many industrial users are exploring next-generation solutions that balance reliability with sustainability. One of the most-talked-about options is the small modular reactor (SMR), a new class of nuclear technology that promises to provide clean, consistent power and high-value industrial steam.

While deployment remains in its early stages, SMRs are becoming part of strategic energy discussions for manufacturers evaluating new facilities, expansions, or long-term goals. As a full-service site selection and location advisory firm, Site Selection Group helps manufacturers evaluate how evolving energy technologies like SMRs, renewables, and natural gas co-generation influence long-term facility planning and operational strategy.

What is an SMR?

SMRs are advanced nuclear units designed to produce up to 300 megawatts of electricity each, according to the U.S. Department of Energy. They are roughly one-third the size of a conventional reactor. They are smaller, often factory-built, transportable and designed for enhanced safety and scalability when compared to previous designs. SMRs can produce both electricity and high-temperature steam for industrial processes, positioning them as a potential long-term solution for reliable, low-carbon energy.

How Industrial Users Expect to Use SMRs

Industrial manufacturers are considering SMRs for three primary applications:

1. Bridging Utility Gaps: In areas where local utilities cannot deliver enough firm power to meet large industrial loads, SMRs could serve as an independent, on-site source of supplemental electric generation.
2. Powering Remote Sites: For projects located far from transmission-level infrastructure, SMRs could provide reliable baseload power without costly grid extensions.
3. Generating Process Steam: SMRs can deliver consistent, high-temperature steam for refining, chemical production, and other heat-intensive processes. A leading example is Dow’s Seadrift, which plans to use X-energy’s Xe-100 to supply both electricity and steam for its chemical operations (Dow Press Release, 2023).

Current Status of SMR Development

Although the technology is advancing, only one SMR design has full approval from the U.S. Nuclear Regulatory Commission (NRC). Several other projects are advancing through review or early licensing stages and represent a range of modular nuclear technologies now under development.

• NuScale Power: NuScale Power is the first SMR developer to receive design certification from the U.S. Nuclear Regulatory Commission (NRC). The initial approval, published in January 2023, applied to the 50-megawatt electric and 160-megawatt thermal design. In May 2025, the NRC approved an uprated 77-megawatt electric and 250-megawatt thermal version of the design (DOE, 2025). (Federal Register, 2023). In September 2025, ENTRA1 Energy and the Tennessee Valley Authority announced plans to develop up to six NuScale-powered facilities totaling approximately 6 GW of capacity.
• Westinghouse AP300: Westinghouse submitted this Generation III+ light water reactor regulatory engagement plan to the NRC in 2023 and is targeting design certification by 2027. (Westinghouse, 2023)
• GE Hitachi BWRX-300: In partnership with the TVA, GE Hitachi is pursuing a construction and operating license at the Clinch River site rather than a separate design certification, leveraging a previously approved reactor framework. The NRC has targeted this review to be complete by December 2026. (ans.org)
• X-energy Xe-100: X-energy’s high-temperature gas-cooled reactor is advancing through the NRC’s licensing process and has received Department of Energy support under the Advanced Reactor Demonstration Program. The NRC accepted the construction permit application in May 2025 and set an 18-month review schedule, which would bring a potential decision to mid-2026, though Dow has indicated that a final investment decision is unlikely before 2028 (utilitydive.com). The design targets combined heat and power applications well-suited for industrial users.

Many other projects are pursuing certification, but these early projects are blazing the trail and serving as essential demonstrations of feasibility. These projects that are advancing through review and licensing stages represent the groundwork for next-generation nuclear energy that will likely enjoy broad industrial adoption later this decade and next.

Anticipated Timeline of SMR Progress in the US

What Manufacturers Are Building Today

Most industrial companies are still focused on proven, near-term energy solutions while keeping an eye on SMRs for the future. Across the country, investment activity is strongest in:

• Combined-cycle natural gas co-generation: This solution provides on-site reliability and flexibility to produce steam if necessary. This option requires access to large quantities of natural gas and does not fully solve for limited emissions (lower emissions than coal), but the technology is well understood, and both workforce and materials are available.
• Renewable energy and battery storage: Solar-plus-storage configurations designed for peak shaving and resilience have grown tremendously in popularity. Given the recent surge in grid-level battery storage systems, this option is more viable and available than ever before. However, even with those improvements, these options require large tracts of land and tend to fluctuate in output based on weather and seasonality. 
• Third-party energy partnerships: These are partnerships, in which private developers build, own, and operate generation assets for corporate users, are increasingly common. This is not a new concept, but given recent increases in electric demand, private capital has become extremely active in this space. Many manufacturers are happy to hand over this job so they can focus on their core business.

Many companies utilizing the approaches above have expressed interest in transitioning to SMRs once they are commercially available, viewing them as a logical next step in achieving low-carbon energy independence.

Hurdles Ahead

SMRs are advancing, but several factors still slow their adoption for industrial users:

• Regulatory and Licensing Complexity: The U.S. licensing process is improving but remains time-intensive and design-specific. This is the main hurdle for most SMR solutions as of 2025. 
• Security: Questions remain about security requirements once these smaller facilities become ubiquitous. Will small nuclear power facilities receive the same high security as existing plants?
• Supply Chain Development: The modular components, fabrication facilities, and specialized materials required for SMRs have not yet been scaled to support wide-scale SMR deployment.
• Fuel Readiness: Some designs will rely on advanced fuels such as high-assay low-enriched uranium (HALEU), which are not yet widely available.
• Workforce Development: Building and operating SMRs will require specialized nuclear engineering, operations, and maintenance expertise, highlighting the need for expanded workforce training and certification programs, including specialized skills such as precision welding for nuclear applications.
• Public Acceptance: Community perceptions around nuclear energy continue to shape permitting and political support.
• Cost Certainty: Construction and delivery timelines remain uncertain until multiple units are deployed and economies of scale are proven.

Comparing Energy Options for Industrial Users

What This Means for Site Selection

For most companies evaluating new facility locations, SMRs remain too far from commercial deployment to significantly influence near-term site selection efforts. Instead, organizations should prioritize reliable and available energy sources such as natural gas, solar, wind, and battery storage, while monitoring progress among utilities and large industrial users experimenting with SMRs.

However, some companies with large and continuous power demands, such as data centers and chemical producers, may benefit from committing to early SMR projects as potential long-term opportunities. These early adopters could help shape how the technology scales and integrates with industrial infrastructure in the coming decades.

Conclusion

Industrial manufacturers are increasingly discussing Small Modular Reactors as part of their long-term energy strategy. The potential is clear: reliable, low-carbon power that integrates with industrial processes. The reality, however, is that SMRs remain years away from broad deployment.

Interest is high, and pilot projects are advancing, but widespread adoption will be gradual. For corporate decision makers evaluating major capital investments, understanding how SMRs could fit into future operations is an important part of long-term planning. To learn how energy readiness factors into site selection decisions, contact Site Selection Group for insights on aligning your project strategy with evolving power technologies.