Small in Scale, Big on Potential: SMRs Spark ASEAN's Nuclear Interest
The Southeast Asia region , also referred to as Association of Southeast Asian Nations (ASEAN), comprises 11 countries and around 660 million people. This demographic and economic surge in nations like Indonesia, Malaysia, and the Philippines has brought global attention to Southeast Asia's energy sector. Over the past 15 years, the region's energy demand has risen 60% according to the International Energy Agency (IEA), predominantly met by imported fossil fuels which accounted for over 90% of the increase. With over 40% of its energy imported and a high reliance on non-renewables, Southeast Asia now faces balancing its growing energy needs with supply security and environmental management. The ASEAN countries have put extensive efforts toward reducing their greenhouse gas (GHG) emissions and decarbonizing their economies. They have set mid-term and long-term plans to reduce no less than 20% of their GHG emissions in order to facilitate achieving carbon neutrality in the future. Furthermore, The member states of ASEAN set a target of achieving a 23% share of renewable energy in their primary energy mix by 2025.
Some Southeast Asian nations, including Indonesia, the Philippines, and Vietnam, are actively considering adopting nuclear energy into their energy mixes, with a focus on small modular reactors (SMRs). SMRs present an appealing option for archipelagic countries like Indonesia and the Philippines in particular. The compact size and modularity of SMRs make them suitable for the dispersed island communities and limited infrastructure common in these archipelagic nations. SMRs can be manufactured in factories, transported easily, and sited flexibly in space-constrained locations, making them ideal for small, remote islands with limited infrastructure. Their modular components allow power output to match demand by adding or subtracting units. SMRs also have enhanced passive safety features, lower water usage, and smaller emergency planning zones, enabling deployment near populated island communities.
Furthermore, SMR technology offers a timely solution to replace retiring coal plants in Indonesia, the Philippines, and Vietnam. These countries have set ambitious energy transition goals to phase out 50% of coal-fired power in the next decade or so. The modular and flexible nature of SMRs makes them well-suited to replace retiring coal capacity. Certain coal plant infrastructure could potentially be refitted for SMR use, including cooling systems, water delivery, fire protection, switchyards, and existing buildings. Repurposing this infrastructure could lead to major cost savings. According to a study by American SMR company, NuScale, repurposing existing plant infrastructure for SMRs could save around $100 million in infrastructure costs on average.
In addition to government interest, adopting SMR technology is also attracting major companies in Southeast Asia looking to decarbonize. For example, Indonesian state-owned firm Pupuk Kalimantan Timur (PKT), an ammonia producer, is partnering with Denmark’s Copenhagen Atomics, Topsoe, Alfa Laval, Aalborg CSP, and Pertamina New & Renewable Energy to study green ammonia production using SMRs. They aim to develop a $4 billion facility capable of generating 1 million tonnes of carbon-free ammonia annually, utilizing green hydrogen from water electrolysis instead of traditional fossil fuel-based methods. Exploring thorium-fueled SMRs aligns with PKT's goals of achieving net zero emissions by 2050 and fully replacing gray ammonia with green. This demonstrates that both public and private stakeholders in the region see the potential of advanced nuclear technology like SMRs to enable clean energy transitions.
NuScale is currently in talks with both Indonesia and Philippines to deploy its SMRs. In May this year, Philippines’s President Ferdinand "Bongbong" Marcos held talks with senior representatives of the US SMR company in Washington to explore options for the NuScale technology deployment in the Philippines in the 2030s. Two months earlier in March, Indonesia Power, a subsidiary of Indonesia’s utility PLN, was a warded a grant by the U.S. Trade and Development Agency for technical assistance to help develop SMR in the country. Indonesia Power will partner NuScale to carry out assessment of the technical and economic viability the proposed nuclear power plant in West Kalimantan. Both Indonesia and Philippines are looking at potentially adopting the NuScale 462-megawatt facility.
Another American SMR company which is aggressively pursuing the Indonesia market is ThorCon which in April this year signed an agreement with Indonesia's Nuclear Energy Regulatory Agency (Bapeten) to officially start a safety, security and safeguards consultation in preparation for licensing a demonstration 500 MWe floating ThorCon molten salt reactor (TMSR-500). ThorCon intends to license, build and operate its first 500 MWe demonstration power plant at Kelasa Island in the Province of Bangka-Belitung by 2029.
Russia's Rosatom is also believed to be in discussions with Indonesia to build a floating nuclear power plant.
In summary, as Southeast Asian nations undergo an energy transition, they must remain aware of both the challenges and opportunities ahead. Given the realities of climate change, proactively exploring viable clean energy options like small modular reactors not only addresses immediate needs but provides a long-term strategy for sustainable development. The successful adoption of this advanced nuclear technology could mark a pivotal milestone for ASEAN members as they work to achieve energy security and decarbonization goals on the path towards a sustainable future.
