Small reactors top nuclear agenda

25 August 2023

This package also includes: Mena pushes for nuclear future

 


Small modular reactor (SMR) solutions could offset concerns about capital expenditure, construction delays and spent-fuel reprocessing that large-scale nuclear power plants present.

SMRs are advanced nuclear reactors that have a power capacity of up to 300MW a unit, which is about one-third of the generating capacity of traditional nuclear power reactors, according to the International Atomic Energy Agency.

They can be factory-assembled, transported and installed in locations not suitable for larger nuclear power plants, such as industrial zones or remote areas with limited grid capacity. This makes them more affordable and easier to build than large reactors.

So far, there are only two advanced SMR installations globally, one in China and the other in Russia. The US’ NuScale is also working towards deploying its first modules in Idaho.

Saudi Arabia and Jordan have been considering deploying SMR solutions as part of their nuclear power programmes.

In 2020, King Abdullah City for Atomic & Renewable Energy (KA-Care) and South Korea’s Science & ICT (Information & Communication Technology) Ministry set up a joint venture to undertake the commercialisation and construction of South Korea’s system-integrated modular advanced reactor technology in the kingdom with the help of Korea Hydro & Nuclear Power.

Nuclear energy is having a revival moment as a recognised part of climate mitigation
Karen Young, Centre on Global Energy Policy, Columbia University

Seeking partners

Jordan, for its part, signed an agreement with Russia for the construction of two 1,000MW reactors in 2015, but the project was cancelled three years later.

Jordan is now considering small nuclear reactors and is talking to potential partners including Russia, South Korea, France and the UK to determine the optimal technical specifications and how to adapt the reactors to the Jordanian environment, Khaled Toukan, chairman of the Jordan Atomic Energy Commission, said in April.

Jordan hopes to use small nuclear reactors for water desalination and power production.

“We have done all the studies,” Toukan said at the time. “The infrastructure is in place, and studies on site selection and the provision of cooling water are in place. Now, we are comparing technologies and we want to get the go-ahead from the government.”

According to Karen Young, a senior research scholar at the Centre on Global Energy Policy at Columbia University in the US, “nuclear energy is having a revival moment as a recognised part of climate mitigation”. 

She says: “We simply do not have other ways of ramping up non-carbon energy production as easily. Technology innovations in SMRs, among others, make this look like a more viable option.”

However, SMRs are as yet unproven, points out Paddy Padmanathan, co-founder and vice-chairman of green hydrogen firm Zhero. He adds that solar and wind projects with battery energy storage systems cost significantly less, despite the subsidies some governments allocate to nuclear power plant projects.

We simply do not have other ways of ramping up non-carbon energy production as easily

Spent fuel

Regardless of a nuclear plant’s size, the storage or reprocessing of the resulting highly radioactive solid waste is a key safety and environmental concern. 

Nuclear reactors require ceramic pellets of low-enriched uranium oxide. These are stacked vertically and encased in metallic cladding to form a fuel rod. The fuel rods are bundled into fuel assemblies that are placed into the reactor. 

The fuel pellets remain in the reactors for five or six years of operation, or until the fission process uses up the uranium fuel. 

The US, which generates about 2,000 tonnes of spent fuel a year, stores the solid waste across 70 reactor sites in the country. Research and development into how to recycle spent fuel, or to design advanced reactors that could consume it, is also under way.

With 58 nuclear power plants generating over 70 per cent of its electricity, France produces nearly 1,150 tonnes of spent fuel a year. Unlike the US, France recycles spent fuel through a process that converts spent plutonium – formed in nuclear power reactors as a by-product of burning uranium fuel – and uranium into a mixed oxide that can be reused in nuclear plants to produce more electricity.

In Iran, meanwhile, the policy at the 1,000MW Bushehr reactor entails cooling down spent fuel in an onsite pool, a process that takes at least five years. It is then transported in steel cylinders that are welded closed to a central storage location in the country’s Anarak region.

UAE policy

The UAE government is developing a long-term storage policy for spent fuel from its Barakah nuclear power plant, the first reactor of which began producing electricity in 2021. The current plan involves placing the fuel assemblies in concrete and steel-lined cooling pools located at the Barakah plant, after which they will be stored in dry casks either on site or at a long-term storage facility.

According to Emirates Nuclear Energy Corporation, the UAE still has plenty of time to make decisions about spent-fuel management, as the first batch of nuclear fuel will be stored for 20-30 years in the spent-fuel pool.

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Jennifer Aguinaldo
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    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
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  • US launches sanctions campaign against Iran

    25 August 2026

    The US has launched a sweeping sanctions campaign against Iran and the entities that trade with it, imposing measures on almost 60 individuals, companies and vessels while expanding the reach of secondary sanctions across five sectors of the Iranian economy.

    The campaign, named Operation Economic Outcast, was announced on 24 August by US treasury secretary Scott Bessent, who described it as an economic D-Day for Iran. He said Washington’s objective was to sever every economic lifeline sustaining the Iranian regime.

    The treasury’s Office of Foreign Assets Control (Ofac) issued five sectoral sanctions determinations under Executive Order 13902, covering digital assets, technology, gold, aviation and shipping. The determinations allow Ofac to sanction any person operating in those sectors, regardless of location. Washington said Iran uses cryptocurrency for sanctions evasion, seeks advanced technology for its weapons programmes, uses gold to stabilise the rial, and relies on commercial aviation and shipping networks to move fighters, weapons and oil revenue.

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    Separately, the treasury targeted a procurement network spanning the Middle East and East Asia that it said supported Iran’s acquisition of proliferation-sensitive equipment, along with a cyber group directed by Iran’s Ministry of Intelligence & Security.

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    The GCC-Iraq grid link involves a double-circuit 400-kilovolt (kV) transmission line from the Wafra station in Kuwait to the Al-Faw station in south Iraq, with a total transmission capacity of 1,800MW and a length of 295 kilometres.

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  • L&T announces Jafurah fourth expansion phase contract award

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    Indian contracting conglomerate Larsen & Toubro (L&T) has announced that its subsidiary, L&T Energy Hydrocarbon Onshore (LTEH Onshore), has won a contract to undertake a gas compression facilities project “for a prestigious client in the Middle East”.

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    MEED previously reported that LTEH started work on the Jafurah fourth expansion phase during the second quarter of the year, with sources estimating the contract value at around $1.5bn.

    The main scope of work on the Jafurah fourth expansion phase project involves the EPC of two gas compression trains at the giant gas basin in the kingdom’s Eastern Province. Each plant will be able to process up to 200 million cubic feet a day (cf/d).

    The detailed scope of work involves the EPC of the following process and utilities units at the south field of the Jafurah reserve:

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    Aramco issued the main tender for the project in July 2024. Contractors invited to bid were initially set a deadline of 15 October that year to submit technical bids and their In-Kingdom Total Value Add (IKTVA) credentials. Commercial bids were due to be submitted by 31 October, with the deadline extended to 31 December, then to 15 January, 2025.

    Jafurah gas development phases

    The Jafurah basin is the largest liquid-rich shale gas play in the Middle East, spanning around 17,000 square kilometres. The reserve is estimated to contain 229 trillion cubic feet of gas and 75 billion stock-tank barrels of condensate.

    Aramco brought the greenfield Jafurah gas processing plant online in early December, with a production capacity of 450 million cf/d, marking the commissioning of the first phase of its $100bn capital expenditure programme to produce gas from the unconventional resource base.

    The Saudi oil company had earlier said it expected to start gas production at Jafurah in 2025, with the intention of progressively ramping up to 2 billion cf/d of sales gas, 420 million cf/d of ethane and 630,000 barrels a day (b/d) of high-value liquids by 2030.

    Aramco has said that, at peak production, its unconventional gas programme is expected to generate electricity equivalent to displacing 500,000 b/d of oil.

    Along with overseeing EPC works on the Jafurah fourth expansion phase project, Aramco is also nearing a decision on awarding the main EPC contract for the fifth expansion phase of the mammoth Jafurah unconventional gas development programme.

    MEED recently reported that a frontrunner has emerged for the main EPC contract for the Jafurah fifth expansion phase, whose scope is similar to the programme’s fourth phase that has been awarded to LTEH.

    Dubai-headquartered Wood Group has carried out the front-end engineering and design (feed) on the fifth expansion phase.

    Progress on the fourth and fifth expansion phases of the Jafurah unconventional gas development programme continues as EPC work on the third phase advances.

    In July 2024, Aramco issued a non-binding letter of intent to a consortium of Tecnicas Reunidas and Sinopec Group for the EPC contract for the Jafurah third expansion phase. The value of the contract is estimated to be $2.24bn.

    The objective of the third expansion phase of Jafurah is similar to that of the fourth phase of development. The main scope of work involves the EPC of three gas compression plants, each with a capacity of 200 million cf/d.

    The third phase’s scope of work also includes building a 230kV substation to power the new gas compression plants and installing other utilities units, piping systems and safety equipment.

    The selection of contractors for the third expansion phase of the Jafurah development came within weeks of Aramco officially awarding EPC contracts for the second expansion phase, which aims to raise its processing potential to up to 2 billion cf/d of raw gas produced from the Jafurah field.

    Aramco awarded 16 contracts, worth a combined total of about $12.4bn, for the second expansion phase on 30 June 2024.

    The EPC scope of work on the project involves the construction of gas compression facilities and associated pipelines and the expansion of the Jafurah gas plant, including the construction of gas processing trains, utilities, sulphur and export facilities, Aramco said in a statement.

    The main EPC packages of the Jafurah second expansion phase project, their estimated values and the selected contractors are:

    • Package 1 – gas processing plant and main process units – $2.9bn: Larsen & Toubro Energy Hydrocarbon (India)
    • Package 2 – utilities and offsites – $2.4bn: Hyundai Engineering (South Korea)
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    • Riyas natural gas liquids (NGL) package 1 – NGL fractionation trains – $1bn: Tecnicas Reunidas / Refining & Chemical Engineering Group (part of China’s Sinopec Group)
    • Riyas NGL package 2 – utilities, storage and export facilities – $2.2bn: Tecnicas Reunidas/Refining & Chemical Engineering Group
    • Riyas NGL package 6 – site preparation works – $107mMofarreh Alharbi & Partners (Saudi Arabia)
    • Riyas NGL package 9 – temporary construction facilities – $80mMofarreh Alharbi & Partners

    Aramco kickstarted EPC works on the first phase of the programme in November 2021 by awarding $10bn-worth of subsurface and EPC contracts.

    In February 2020, Aramco received a capital expenditure grant of $110bn from the Saudi government for the long-term phased development of the Jafurah unconventional gas resource base.

    The Jafurah unconventional gas development programme is central to Aramco’s goal of increasing gas production capacity. The target has recently been raised to 80%, with 2021 as the baseline, up from 60%, to meet rising domestic and global demand. The company expects life-cycle investment in Jafurah to exceed $100bn.

    Prior to the commissioning of the Jafurah gas plant in the last quarter of this year, Aramco completed an $11bn lease-and-leaseback deal in late October for gas processing facilities at the Jafurah unconventional gas reserve with a consortium led by funds managed by Global Infrastructure Partners (GIP), part of US asset manager BlackRock.

    Under the transaction, which Aramco started in August, a newly formed subsidiary – Jafurah Midstream Gas Company (JMGC) – will lease development and usage rights to the Jafurah field gas processing plant and the Riyas natural gas liquids (NGL) fractionation facility.

    After 20 years, JMGC will lease the assets back to Aramco. JMGC will collect a tariff payable by Aramco in exchange for granting Aramco the exclusive right to receive, process and treat raw gas from the Jafurah resource base.

    Aramco will hold a 51% majority stake in JMGC, while the GIP-led consortium will hold the remaining 49%. Investors participating in the GIP-led consortium include Hassana Investment Company, The Arab Energy Fund (TAEF) and Aberdeen Investcorp Infrastructure Partners, as well as other institutional investors from North and Southeast Asia and the Middle East.

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    Indrajit Sen
  • Saudi Arabia battery storage awards provide fresh lift

    24 August 2026

    Commentary
    Mark Dowdall
    Power & water editor

    The latest battery storage awards provide a welcome injection of investment into Saudi Arabia’s power market, which has seen a sharp slowdown in contract awards this year.

    Saudi Power Procurement Company’s four Group 1 storage service agreements, announced last week, are worth more than $1.16bn and cover 2,000MW of capacity.

    That is significant against the wider market. According to regional project tracker MEED Projects, Saudi Arabia recorded $19.7bn in power sector contract awards in the first seven months of 2025, compared with just $2.5bn in new awards in the same period this year.

    The battery energy storage system (bess) awards therefore account for a sizeable share of the activity recorded so far this year and provide a much-needed source of new contracting activity.

    Importantly, this is not a one-off. SPPC issued the request for proposal (RFP) for its second group of bess projects in July, covering six projects with a combined capacity of 3,000MW and 12,000MWh.

    With the Group 1 tender taking around 18 months from RFP to contract award, it is reasonable to expect Group 2 contracts to be signed in 2027.

    At the same time, the awards for six independent renewable plants under Round 7 of Saudi Arabia’s National Renewable Energy Programme (NREP), with a combined capacity of 5,300MW, are also likely to move into next year, with the latest bid deadlines now extending into September.

    Although a substantial pipeline remains in procurement, it is only once these projects move from tender to award and into construction that this pipeline translates into market activity.

    It is important that these tenders continue to progress at the pace established by the early rounds of Saudi Arabia’s renewable energy programme and now also SPPC’s independent storage provider bess scheme.

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    Mark Dowdall