In order to meet the massive requirement of energy to power Artificial Intelligence and at the same time ensure that the energy source is clean and efficient, global technology giants such as Amazon and Microsoft are now investing in the development of advanced small nuclear reactors. India’s construction and engineering major Larsen & Toubro, which has for long been a key player in India’s nuclear energy development, sees an opportunity in the growing demand for the development of these small nuclear reactors.

Known as Small Modular Reactors or SMRs, these fission reactors are physically a fraction of the size of a conventional nuclear power reactor and the systems and components can be factory-assembled and transported as a unit to a location for installation, according to the International Atomic Energy Agency.

“I think globally, definitely our model will be more as a supplier. I mean we have that capability to manufacture the high end of that manufacturing capability which is required to support those types of projects and we will participate,” said Subramanian Sarma, Whole-Time Director and President (Energy) at L&T, in response to a query from ET Infra in a recently held conference call with journalists.

“...in fact we are getting a lot of interest from some of the global players and we are well positioned to participate in that,” added Sarma.

Amazon recently invested $500 million in Maryland-based X-energy, a private advanced nuclear reactor and fuel company. The investment among other things will support future carbon-free projects that will use X-energy’s Xe-100 advanced small modular nuclear reactors.

According to a statement from X-energy, both Amazon and the company plan to bring more than 5 gigawatts of new power projects online across the US by 2039, representing the largest commercial deployment target of SMRs to date and plan to establish and standardize a deployment and financing model to develop projects in partnership with infrastructure and utility partners.

L&T has contributed to all the 22 operational nuclear reactors in India and has manufactured reactor vessels (which hold nuclear fuel), critical equipment and systems for heavy water plants, fuel re-processing plants and plasma reactors. “We are maybe one of the few in the world who has the full integrated capability, right from the raw material to the production of the reactors,” said Sarma. The company continues to engage in the nuclear energy sector both as equipment supplier as well as undertaking engineering, procurement and construction work.

Sarma highlighted that development of SMRs seems promising and has picked up momentum in some countries like the US and the technology is still evolving. He believes that acceleration and adaptation of the same will largely depend on the regulatory framework in respective countries. Currently, countries including India have their regulatory framework on nuclear energy created around traditional large centralized nuclear plants. The modular nature of SMRs provides an advantage.

Microsoft in its policy brief on advanced nuclear and fusion energy stated that SMRs can radically improve the safety, efficiency, cost, and environmental impact from traditional nuclear reactors.