Small modular reactors offer advantages for coal plant conversion due to their compact footprint, factory fabrication, and ability to utilize existing transmission infrastructure, cooling water systems, and trained thermal plant workforces. The letter of intent commits the three parties to conduct detailed technical assessments covering reactor design compatibility, site geological and seismic conditions, regulatory pathways under Brazil’s nuclear licensing framework, grid integration requirements, and economic modeling of the conversion versus new-build scenarios.
The partnership leverages IAEA’s technical expertise in nuclear energy deployment and SMR technology assessment, while Abdan brings domestic nuclear industry knowledge and connections to Brazil’s nuclear supply chain. Diamante operates coal-fired capacity in southern Brazil, where coal plants face increasing economic pressure from cheap renewable generation and potential carbon pricing mechanisms. Converting thermal sites to nuclear preserves baseload generation capacity while eliminating coal combustion emissions and associated environmental compliance costs.
The collaboration aligns with broader industry interest in coal-to-nuclear conversion as a faster path to firm low-carbon power than building nuclear plants on undeveloped sites. Existing coal plant infrastructure including substations, transmission lines, access roads, and workforce housing can reduce SMR deployment timelines by 18 to 24 months compared to greenfield projects. Site characterization, environmental permitting, and community acceptance are also simplified when repurposing industrial sites rather than developing new locations.
Brazil’s nuclear regulatory framework currently governs only large conventional reactors, requiring regulatory adaptation to license SMR designs with different safety systems and operational characteristics. The study will identify necessary regulatory pathways and licensing timeline assumptions critical to project economics. Results from the technical collaboration will inform Diamante’s strategic decisions on thermal asset decarbonization and provide a reference case for similar conversion projects across Brazil’s coal fleet.
This article was curated and published as part of our South American energy market coverage.
