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<p>Nuclear power supplies reliable low-carbon electricity and high-temperature heat, but existing plants face growing pressure to operate more flexibly in markets with rising renewable penetration. Coupling nuclear reactors with hydrogen production through high-temperature electrolysis may improve flexibility and create additional value, yet its economic potential remains uncertain. Here we show that integrating nuclear generation with hydrogen production and ancillary service participation can substantially improve the economics and operational flexibility of nuclear energy systems. Using an hourly optimization model linked to lifecycle techno-economic analysis, we find that retrofitting existing reactors with high-temperature electrolysis increases average net present value from about -$1.06 billion to about $240 million without policy support, while expanding flexible output by more than 115 MW for most reactors. Policy incentives, cost reductions, and optimized market participation further strengthen the value of nuclear-hydrogen systems for reducing costs and supporting grid reliability.</p>

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Rethinking the economics and flexibility of U.S. nuclear power through hydrogen integration and policy support

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2026年6月2日

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  • Honglin Li,
  • Jianqiao Huang,
  • Bikash Poudel,
  • Mucun Sun,
  • Tyler Westover,
  • Daniel Wendt,
  • Jie Zhang

摘要

Nuclear power supplies reliable low-carbon electricity and high-temperature heat, but existing plants face growing pressure to operate more flexibly in markets with rising renewable penetration. Coupling nuclear reactors with hydrogen production through high-temperature electrolysis may improve flexibility and create additional value, yet its economic potential remains uncertain. Here we show that integrating nuclear generation with hydrogen production and ancillary service participation can substantially improve the economics and operational flexibility of nuclear energy systems. Using an hourly optimization model linked to lifecycle techno-economic analysis, we find that retrofitting existing reactors with high-temperature electrolysis increases average net present value from about -$1.06 billion to about $240 million without policy support, while expanding flexible output by more than 115 MW for most reactors. Policy incentives, cost reductions, and optimized market participation further strengthen the value of nuclear-hydrogen systems for reducing costs and supporting grid reliability.