France and Germany are moving towards a joint European energy policy based on technological neutrality, marking a new phase in nuclear energy, according to Andreas Poullikkas, professor of energy systems at Frederick University and former chairman of the Cyprus Energy Regulatory Authority (CERA).

Poullikkas was commenting on the joint declaration by French President Emmanuel Macron and German Chancellor Friedrich Merz, who recently called for a new approach to European energy cooperation, including nuclear power.

While France has long backed nuclear energy as essential to decarbonisation, Germany has traditionally been more cautious.

The joint initiative now sees Berlin agreeing not to block other member states from pursuing nuclear development, even if it does not adopt the technology itself.

“This marks a significant turning point,” Poullikkas said. “It demonstrates a pragmatic recognition of national energy choices, while safeguarding European unity and supply security.”

At the heart of this transformation are Small Modular Reactors (SMRs), which Poullikkas described as “among the most promising developments in the energy sector today.”

SMRs are compact nuclear reactors with a capacity of up to 300 megawatts.

Their modular design allows for factory prefabrication and transport to remote or space-constrained locations.

This makes them ideal for countries seeking a flexible and lower-cost path to decarbonisation.

“The SMRs offer cleaner electricity production with improved safety compared to traditional large-scale reactors,” he explained. “They require less space, come with enhanced safety systems, and have a simpler design.”

Currently, only Russia and China operate commercial SMRs. Russia’s floating power station Akademik Lomonosov has been providing electricity and heat to Pevek in Chukotka since 2020, while China’s HTR-PM reactor at Shidaowan began operations in 2023. “These are the first practical implementations of SMR technology globally,” Poullikkas said.

Interest in SMRs is rapidly growing. In Canada, the BWRX-300 SMR by GE Hitachi is being built in Ontario and is scheduled for operation by the end of the decade. France is advancing its Nuward project through EDF, and the United States has already placed SMR orders, including one by Google to power its data centres.

“According to global forecasts, SMRs could reach 80 gigawatts of capacity by 2040, accounting for 10 per cent of global nuclear power,” Poullikkas noted. “Annual investments are expected to rise sharply in the coming years.”

Europe is quickly aligning with this trend. Poland is working with GE Hitachi, Romania has partnered with NuScale Power for the VOYGR project, the UK is developing an SMR through Rolls-Royce, Sweden is collaborating with Studsvik Nuclear AB, and France is moving forward with EDF.

“These partnerships reflect the international momentum and strategic interest in SMRs,” he said. “The technology is set to play a pivotal role in the European energy transition.”

Beyond electricity generation, SMRs could reshape other strategic sectors. “They are ideal for hydrogen production, desalination, and even transport,” Poullikkas said.

He highlighted the potential for ‘pink hydrogen’—produced via water electrolysis using SMR-generated power—as vital to reducing emissions in industry and mobility. “Projects like ANItA in Sweden are exploring hydrogen production with high-temperature electrolysis, powered by SMRs. This is far more stable and cost-effective than relying on intermittent renewables.”

SMRs could also be paired with desalination plants, especially in coastal or arid regions. “The Akademik Lomonosov already demonstrates this by producing both electricity and drinking water. We now have established protocols for coupling nuclear reactors with desalination systems.”

In transport, Poullikkas sees nuclear propulsion via SMRs enabling zero-emission vessels, although it would require updates to global safety regulations.

“Moreover”, he continued, “hydrogen from SMRs could fuel hydrogen-powered vehicles, helping to eliminate emissions in transport.”

On safety, Poullikkas was reassuring but realistic. “SMRs incorporate advanced cooling systems and produce less radioactive waste per energy unit than traditional reactors,” he said. “Their design allows for passive core shutdown in case of failure, providing built-in stability.”

However, challenges remain. “We still lack long-term solutions for nuclear waste and must address geopolitical dependencies linked to nuclear technology,” he cautioned.

“SMRs represent a hopeful solution for meeting energy needs with minimal carbon emissions,” Poullikkas continued.

“But their success will depend on clear regulatory frameworks and responsible waste management,” he added.

“With the right political support and investments, SMRs can become a cornerstone of the global energy transition in the years to come,” the former CERA chief concluded.