A newly published peer-reviewed study in Nuclear Engineering and Design explores the potential of small modular reactors (SMRs) to decarbonize urban energy systems, promising results forheat-optimized reactor designs like Steady Energy’s LDR-50.
The study, “Feasibility of Small Modular Reactors for Decarbonizing District Heating Systems: A Case Study of the Helsinki Metropolitan Area”, evaluates how SMRs could be integrated into the district heating (DH) and cooling system of the Finnish capital region. The research assesses the technological, environmental, and economic viability of two SMR concepts:
- LDR-50, a 50 MW heat-only reactor developed by VTT and now being commercialized by Steady Energy
- E-SMR, an academic 155 MWe/50 MWth concept developed in the European ELSMOR project
LDR-50 Emerges as a Profitable and Practical Choice
Using the Backbone energy system model, the study found that while both SMRs significantly reduce CO₂ emissions. However, only LDR-50 was shown to be economically feasible in the current Helsinki energy market. In contrast, the electricity-oriented E-SMR faced challenges due to low electricity prices and high capital costs.
“Heat-focused SMRs like the LDR-50 appear especiallywell-suited for Nordic cities, where heat demand is high and consistent,” the authors conclude.
The research highlights LDR-50’s ability to:
- Reduce greenhouse gas emissions in an urban district heating network
- Provide a continuous and local supply of clean heat
- Be financially viable under current energy market conditions
A Call for Heat-Centric Energy Planning
One of the study’s key takeaways is that in cold-climatecities, heat production may offer a stronger business case than electricity generation. This shifts the narrative around SMRs, traditionally framed as electricity producers, toward their untapped potential as reliable, carbon-freeheat sources.
The study also stresses the importance of sensitivity to market conditions, particularly investment costs, operating expenses, and discount rates, which significantly affect SMR profitability. Future integration with emerging technologies such as electrolyzers and exploration of alternative fuel strategies could further strengthen the case for SMRs.
About the Study
The paper was authored by energy researchers at VTT and LUT University and supported by the TANDEM project, a European collaboration focused on the safe and efficient deployment of SMRs.
About LDR-50
The LDR-50 is a Finnish-designed small modular reactor for district heating, offering 50 MW of clean and steady heat. It is being developed by Steady Energy, a VTT spin-off focused on deployingnext-generation nuclear heat solutions for cities. The first pilot plant is expected to be operational by the early 2030s.
Read the full study.