In an unexpected turn of events, the groundbreaking project to build the first small-scale US nuclear reactor has been officially canceled. The ambitious plan, which aimed to demonstrate the potential of small modular reactors (SMR) in revolutionizing the nuclear industry, faced a setback as the project failed to attract sufficient customers to purchase its power.

The project, known as the Carbon Free Power Project (CFPP) and spearheaded by startup company NuScale Power, was set to construct a state-of-the-art plant in Idaho Falls. The plant was designed to house six Voygr model SMRs, each measuring a mere 9 feet in diameter and 65 feet tall. With a projected capacity of 462 megawatts, the plant was expected to commence construction by 2026 with power generation commencing by the end of the decade.

The CFPP received significant financial support from various small utilities within the Utah Associated Municipal Power Systems (UAMPS), who saw the miniature nuclear plant as a potential solution to their carbon emissions reduction targets. The US Department of Energy also backed the project, awarding a considerable $1.4 billion over a period of 10 years.

However, as costs incurred by the project skyrocketed, the small utilities backing the CFPP grew increasingly concerned. Despite accounting for substantial funds from the Inflation Reduction Act, the projected costs for the plant rose by a staggering 50 percent, as reported earlier this year. This unexpected financial burden shook the confidence of the project's supporters and prompted doubts about its feasibility.

At the time of cancellation, the CFPP had secured commitments to purchase less than 25 percent of its power output. To ensure the project's long-term viability, UAMPS set a target of reaching 80 percent by the end of the year. However, as the project progressed towards site-specific planning and construction, it became evident that meeting this target would be challenging. The inability to secure sufficient new customers undermined the prospects of the project's success and ultimately led to its cancellation.

Local officials, who had previously expressed optimism about the project's future, faced disappointment and uncertainty. Places like Los Alamos, New Mexico, which had anticipated the arrival of the CFPP to facilitate the decarbonization of their electrical grid and replace retiring fossil fuel plants, now find themselves grappling with the question of finding clean and reliable power sources in the absence of the groundbreaking nuclear plant.

The cancellation of the CFPP serves as a significant setback for the US nuclear industry, which has seen limited progress in the construction of new reactors over the past two decades. Despite the enthusiasm and ambition surrounding small modular reactors, this recent development calls into question the viability and economic feasibility of such projects. It remains to be seen whether alternative approaches to small-scale nuclear energy will emerge to shape the future of the industry.