Technology
5N Plus Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results
Published
1 year agoon
By
19% growth in annual revenue to $289.3 million39% growth in annual Adjusted EBITDA1 to a record $53.3 millionAnnual Adjusted gross margin percentage1 of 31.6%Backlog1 of $252.8 million, representing 326 days of annualized revenue, as at December 31, 2024Increases 2025 Adjusted EBITDA guidance to a range of $55 to $60 million
MONTREAL, Feb. 25, 2025 /CNW/ – 5N Plus Inc. (TSX: VNP) (“5N+” or “the Company”), a leading global producer of specialty semiconductors and performance materials, today announced its financial results for the fourth quarter of fiscal 2024 (“Q4 2024”) and fiscal year (“FY 2024”) ended December 31, 2024. All amounts in this press release are expressed in U.S. dollars unless otherwise stated.
“We had an outstanding year in FY 2024, generating stellar financial and operational results. We generated record annual Adjusted EBITDA representing 39% growth over the previous year, delivered on our margin expansion efforts, and sustained an elevated backlog and a solid balance sheet. We also successfully increased capacity at several sites to meet demand in strategic sectors, with work underway to increase solar cell capacity at AZUR by an additional 30% this year, on top of the 35% achieved last year. Looking at our segments, in Specialty Semiconductors, we continued to benefit from our unique position as the leading supplier outside China and trusted partner in the growing terrestrial renewable energy and space solar power sectors. In Performance Materials, our improved product mix and solid operational execution also contributed to strong profitability,” said Gervais Jacques, President and CEO of 5N+.
“Our strategic focus on higher margin, value-added advanced materials and on being a critical supplier without being a critical cost to customers operating in growing markets continues to pay off. This is further supported by our recognition as a reliable partner and market leader with unique expertise and manufacturing capabilities. With our resilient and agile business model as our foundation, we will continue to leverage our strategic positioning and competitive advantages to build on our FY 2024 momentum as we enter 2025 and forge ahead on our profitable growth path,” concluded Mr. Jacques.
Financial Highlights
Revenue in Q4 2024 increased by 9% to $70.9 million, compared to $65.1 million in Q4 2023, driven by strong growth under Specialty Semiconductors. Revenue in FY 2024 reached $289.3 million, compared to $242.4 million in FY 2023, supported by the terrestrial renewable energy and space solar power sectors under Specialty Semiconductors.Adjusted EBITDA in Q4 2024 increased by 38% to $12.5 million, compared to $9.0 million in Q4 2023, driven by higher volume from the terrestrial renewable energy and space solar power sectors, and better prices over inflation. Adjusted EBITDA was $53.3 million in FY 2024, representing a 39% increase compared to $38.3 million in FY 2023.Adjusted gross margin1 increased by 26% to $23.4 million in Q4 2024, favourably impacted by the same factors as above. Adjusted gross margin as a percentage of sales was 33.0% in Q4 2024, compared to 28.5% in Q4 2023. Adjusted gross margin reached $91.3 million for FY 2024, or 31.6% of sales, compared to $70.2 million in FY 2023, or 29.0% of sales.Net earnings in Q4 2024 were $1.0 million, compared to $2.3 million in Q4 2023. For FY 2024, net earnings were $14.7 million, compared to $15.4 million in FY 2023.Backlog stood at $252.8 million, representing 326 days of annualized revenue as at December 31, 2024, 37 days higher than the previous quarter and 34 days higher than at the end of last year, primarily due to the timing of contract signings and renewals.Net debt1 was $100.1 million as at December 31, 2024, compared to $73.8 million as at December 31, 2023, reflecting an increase in working capital1 and planned capital expenditures in 2024 under Specialty Semiconductors. The Company’s net debt to EBITDA ratio1 stood at 2.02x as at December 31, 2024.
____________________________
1 These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. See Non-IFRS Measures for more information.
Market Outlook
In Specialty Semiconductors, 5N+ continues to benefit from its unique position as the leading global supplier of ultra-high purity semiconductor compounds outside China, with long-term partnerships with key customers. Growing demand remains the rule, particularly in terrestrial renewable energy and space solar power. 5N+ is well-positioned to capitalize on future opportunities in these high-growth sectors.
The Company also anticipates growth under imaging and sensing applications including in the security, defence and medical sectors. The anticipated transition to photon counting detector (PCD) technology for medical imaging is anticipated to provide a promising growth avenue in the medium term.
Management expects growth in the Performance Materials segment to be primarily driven by the health and pharmaceutical sector, which provides high profitability and predictable cashflows. We expect demand for bismuth chemicals to continue to grow in line with GDP in respective markets.
As a result of increased production capacity and operational flexibility, 5N+ is in a position to efficiently capture additional organic growth opportunities in the near term, while it also actively pursues external growth opportunities.
Based on under-contract and anticipated near-term demand primarily driven by the Specialty Semiconductors segment, management anticipates generating Adjusted EBITDA in a range of $55 to $60 million in 2025, representing an upward revision of its previously disclosed range of $50 to $55 million.
The recent change in administration in the U.S. creates uncertainty in the global economic outlook, particularly regarding potential trade protectionist measures that could trigger retaliatory actions from affected countries. Given the rapidly evolving landscape and the potential impact of these measures, the Company has elected to defer providing guidance for 2026 until it has had the opportunity to further assess the direct and indirect impacts on its business and operations. The Company remains committed to its long-term objectives and the execution of its strategic initiatives.
The Company intends to leverage its strategic positioning and competitive advantages to build on its FY 2024 momentum as it enters 2025 and to navigate any potential headwinds that result from the evolving macro-economic and geopolitical environment.
Conference Call
5N+ will host a conference call on Wednesday, February 26, 2025, at 8:00 a.m. Eastern Time to discuss Q4 and FY 2024 financial results. All interested parties are invited to participate in the live broadcast on the Company’s website at www.5nplus.com.
To participate in the conference call:
Toronto area: 289-819-1299Toll‐Free: 1-800-990-4777Enter access code: 71321
A replay of the conference call will be available two hours after the event and until March 5, 2025. To access the recording, please dial 1-888-660-6345 and enter access code 71321.
________________________________
1 These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. See Non-IFRS Measures for more information.
About 5N+
5N+ is a leading global producer of specialty semiconductors and performance materials. The Company’s ultra‐pure materials often form the core element of its customers’ products. These customers rely on 5N+’s products to enable performance and sustainability in their own products. 5N+ deploys a range of proprietary and proven technologies to develop and manufacture its products. The Company’s products enable various applications in several key industries, including renewable energy, security, space, pharmaceutical, medical imaging and industrial. Headquartered in Montréal, Quebec, 5N+ operates R&D, manufacturing and commercial centers in strategically located facilities around the world including Europe, North America and Asia.
Forward‐Looking Statements
Certain statements in this press release may be forward‐looking within the meaning of applicable securities laws. Such forward‐looking statements are based on a number of estimates and assumptions that the Company believes are reasonable when made, including that 5N+ will be able to retain and hire key personnel and maintain relationships with customers, suppliers and other business partners, that 5N+ will continue to operate its business in the normal course, that 5N+ will be able to implement its growth strategy, that 5N+ will be able to successfully and timely complete the realization of its backlog, that 5N+ will not suffer any supply chain challenges or any material disruption in the supply of raw materials on competitive terms, that 5N+ will be able to generate new sales, produce, deliver, and sell its expected product volumes at the expected prices and control its costs, as well as other factors believed to be appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict and may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward‐looking statements. A description of the risks affecting the Company’s business and activities appears under the heading “Risk and Uncertainties” of the Company’s 2024 MD&A dated February 25, 2025, available on www.sedarplus.ca.
Forward‐looking statements can generally be identified by the use of terms such as “may”, “should”, “would”, “believe”, “expect”, the negative of these terms, variations of them or any similar terms. No assurance can be given that any events anticipated by the forward‐looking statements in this press release will transpire or occur, or if any of them do so, what benefits that 5N+ will derive therefrom. In particular, no assurance can be given as to the future financial performance of 5N+. The forward‐looking statements contained in this press release is made as of the date hereof and the Company has no obligation to publicly update such forward‐looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. The reader is warned against placing undue reliance on these forward‐looking statements. Forward-looking statements are presented in this press release for the purpose of assisting investors and others in understanding certain key elements of the Company’s expected financial results, as well as the Company’s objectives, strategic priorities and outlook, and in obtaining a better understanding of the Company’s anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.
5N PLUS INC.
CONSOLIDATED STATEMENTS OF EARNINGS
Years ended December 31
(in thousands of United States dollars, except per share information)
2024
2023
$
$
Revenue
289,281
242,371
Cost of sales
211,413
184,833
Selling, general and administrative expenses
34,026
29,410
Other expenses (income), net
11,614
756
257,053
214,999
Operating earnings
32,228
27,372
Financial expenses
Interest on long-term debt
8,210
8,262
Imputed interest and other interest expense
959
572
Foreign exchange gain
(549)
(136)
8,620
8,698
Earnings before income taxes
23,608
18,674
Income tax expense (recovery)
Current
6,945
6,674
Deferred
1,991
(3,399)
8,936
3,275
Net earnings
14,672
15,399
Basic earnings per share
0.17
0.17
Diluted earnings per share
0.16
0.17
Net earnings are completely attributable to equity holders of 5N+.
5N PLUS INC.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands of United States dollars)
December 31
2024
December 31
2023
$
$
Assets
Current
Cash
22,142
34,706
Accounts receivable
42,172
33,437
Inventories
137,823
105,850
Income tax receivable
1,811
1,672
Derivative financial assets
6,978
591
Other current assets
6,469
5,707
Total current assets
217,395
181,963
Property, plant and equipment
85,995
84,600
Right-of-use assets
28,583
29,290
Intangible assets
22,929
29,304
Goodwill
10,665
11,825
Deferred tax assets
7,358
8,261
Other assets
3,982
4,959
Total non-current assets
159,512
168,239
Total assets
376,907
350,202
Liabilities
Current
Trade and accrued liabilities
42,116
37,024
Income tax payable
5,207
4,535
Current portion of deferred revenue
11,206
13,437
Current portion of lease liabilities
1,952
1,811
Current portion of long-term debt
–
25,000
Total current liabilities
60,481
81,807
Long-term debt
122,203
83,500
Deferred tax liabilities
5,737
5,284
Employee benefit plan obligations
12,624
13,393
Lease liabilities
27,450
28,328
Deferred revenue
8,688
5,629
Other liabilities
706
3,669
Total non-current liabilities
177,408
139,803
Total liabilities
237,889
221,610
Equity
139,018
128,592
Total liabilities and equity
376,907
350,202
Non‐IFRS Measures
EBITDA means net earnings (loss) before interest expenses, income tax expense (recovery), depreciation and amortization. 5N+ uses EBITDA because it believes it is a meaningful measure of the operating performance of its ongoing business, without the effects of certain expenses. The definition of this non-IFRS measure used by the Company may differ from that used by other companies.
EBITDA is reconciled to the most comparable IFRS measure:
(in thousands of U.S. dollars)
Q4 2024
Q4 2023
FY 2024
FY 2023
$
$
$
$
Net earnings
1,006
2,284
14,672
15,399
Interest on long-term debt, imputed interest and other interest expense
2,446
2,129
9,169
8,834
Income tax expense (recovery)
2,415
(734)
8,936
3,275
Depreciation and amortization
4,373
4,057
16,791
16,110
EBITDA
10,240
7,736
49,568
43,618
EBITDA margin is defined as EBITDA divided by revenues.
Adjusted EBITDA means operating earnings (loss) as defined before the effect of impairment of inventories, share-based compensation expense (recovery), loss (gain) on disposal of property, plant and equipment, loss (gain) on remeasurement of financial instrument, impairment (reversal of impairment) of non-current assets, litigation and restructuring costs (income), and depreciation and amortization. 5N+ uses Adjusted EBITDA because it believes it is a meaningful measure of the operating performance of its ongoing business without the effects of certain expenses. The definition of this non-IFRS measure used by the Company may differ from that used by other companies.
Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenues.
Adjusted EBITDA and Adjusted EBITDA margin are reconciled to the most comparable IFRS measure:
(in thousands of U.S. dollars)
Q4 2024
Q4 2023
FY 2024
FY 2023
$
$
$
$
Revenues
70,854
65,063
289,281
242,371
Operating expenses
(64,701)
(61,023)
(257,053)
(214,999)
Operating earnings
6,153
4,040
32,228
27,372
Share-based compensation expense
309
414
906
1,432
(Gain) loss on disposal of property, plant and equipment
–
–
(2,089)
1,051
Loss on remeasurement of financial instrument
1,000
–
1,000
–
(Reversal of impairment) impairment of non-current assets
(120)
64
2,706
672
Litigation and restructuring costs (income)
769
458
1,790
(8,314)
Depreciation and amortization
4,373
4,057
16,791
16,110
Adjusted EBITDA
12,484
9,033
53,332
38,323
Adjusted EBITDA margin
17.6 %
13.9 %
18.4 %
15.8 %
Adjusted gross margin is a measure used to monitor the sales contribution after paying cost of sales, excluding depreciation and inventory impairment charges. 5N+ also expressed this measure in percentage of revenues by dividing the adjusted gross margin value by the total revenue.
Adjusted gross margin is reconciled to the most comparable IFRS measure:
(in thousands of U.S. dollars)
Q4 2024
Q4 2023
FY 2024
FY 2023
$
$
$
$
Total revenue
70,854
65,063
289,281
242,371
Cost of sales
(51,104)
(49,677)
(211,413)
(184,833)
Gross margin
19,750
15,386
77,868
57,538
Depreciation included in cost of sales
3,643
3,189
13,445
12,656
Adjusted gross margin
23,393
18,575
91,313
70,194
Adjusted gross margin percentage
33.0 %
28.5 %
31.6 %
29.0 %
Backlog represents the expected orders the Company has received, but has not yet executed, and that are expected to translate into sales within the next twelve months, expressed in dollars and estimated in number of days not to exceed 365 days. Bookings represent orders received during the period considered, expressed in number of days, and calculated by adding revenues to the increase or decrease in backlog for the period considered, divided by annualized year revenues. 5N+ uses backlog to provide an indication of expected future revenues in days, and bookings to determine its ability to sustain and increase its revenues.
Net debt is calculated as total debt less cash. Any introduced IFRS 16 reporting measures in reference to lease liabilities are excluded from the calculation. 5N+ uses this measure as an indicator of its overall financial position.
The net debt to EBITDA ratio is defined as net debt divided by the trailing 12 months EBITDA.
Total debt and Net debt are reconciled to the most comparable IFRS measure:
(in thousands of U.S. dollars)
As at December 31, 2024
As at December 31, 2023
$
$
Bank indebtedness
–
–
Long-term debt including current portion
122,203
108,500
Lease liabilities including current portion
29,402
30,139
Subtotal Debt
151,605
138,639
Lease liabilities including current portion
(29,402)
(30,139)
Total Debt
122,203
108,500
Cash
(22,142)
(34,706)
Net Debt
100,061
73,794
Working capital is a measure of liquid assets that is calculated by taking current assets and subtracting current liabilities. Given that the Company is currently indebted, it uses it as an indicator of its financial efficiency and aims to maintain it at the lowest possible level.
Working capital ratio is calculated by dividing current assets by current liabilities.
Working capital is reconciled to the most comparable IFRS measure:
(in thousands of U.S. dollars)
As at December 31, 2024
As at December 31, 2023
$
$
Inventories
137,823
105,850
Other current assets excluding inventories
79,572
76,113
Current assets
217,395
181,963
Current liabilities
(60,481)
(81,807)
Working capital
156,914
100,156
Working capital ratio
3.59
2.22
SOURCE 5N Plus Inc.
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April 22, 2026By
BANGKOK, April 21, 2026 /PRNewswire/ — Chulalongkorn University aims for carbon neutrality, promotes knowledge in nuclear energy and Small Modular Reactor (SMR) technology, safer small-scale nuclear power plants with zero carbon emissions, preparing personnel to drive the nation toward energy security and enhance future economic competitiveness.
Many countries around the world are accelerating their transition toward carbon neutrality while simultaneously strengthening energy security. Solar, wind, and hydropower are clean energy sources that have attracted significant attention, with continuous advancements in technology. Another indispensable high-efficiency clean energy source that does not emit greenhouse gases is nuclear power.
Today, the global nuclear energy trend is moving toward small nuclear power plants, or Small Modular Reactors (SMRs), which feature more advanced technology, enhanced safety, and greater flexibility in deployment. At present, there are two operational SMRs in the world, located in China and Russia. However, within the next five years, additional SMRs are expected to be developed in several countries, including China, Russia, Canada, and the United States.
For Thailand, the latest draft of Power Development Plan (PDP) 2024 mentions the consideration of SMRs as a future energy option. Thailand has long demonstrated readiness in terms of personnel and nuclear expertise, developed over several decades by the Department of Nuclear Engineering, Faculty of Engineering, Chulalongkorn University, the only institution in Thailand that offers education in nuclear engineering.
Half a Century of Thailand’s Nuclear Energy
Nuclear energy is not new to Thai society; rather, it has been around for over half a century. Assoc. Prof. Nares Chankow, a lecturer in the Department of Nuclear Engineering, Faculty of Engineering, Chulalongkorn University, explained that Thailand began discussing nuclear energy as early as 1966. In 1967. A ten-member subcommittee was formed to conduct a feasibility study in various aspects, including personnel training.
“Early preparations for nuclear energy were carried out seriously and systematically. Several potential sites were surveyed, and the conclusion was to designate Ao Phai in Si Racha District, Chonburi Province, as the location for Thailand’s first nuclear power plant. This plan was approved by the Atoms for Peace Committee, which was chaired by the Prime Minister at that time,” he said.
This project is also regarded as the starting point for the establishment of the Department of Nuclear Engineering, Faculty of Engineering, Chulalongkorn University.
“In 1970, Chulalongkorn University established the Nuclear Engineering School, initially focusing on training personnel from the Office of Atoms for Peace. In 1971, professors from the United States assisted in developing the curriculum. By 1972, the university launched a Graduate Diploma program and a Master of Engineering program in Nuclear Technology. In the early period, before a formal department existed, the program was administratively housed within the Department of Sanitary Engineering—now known as the Department of Environmental Engineering and Sustainability. It was not until 1974 that the Department of Nuclear Technology was officially established, marking the beginning of nuclear engineering education in Thailand. The department was later renamed the Department of Nuclear Engineering to align with other departments within the Faculty of Engineering,” Assoc. Prof. Nares said.
Over the past 50 years, the Department of Nuclear Engineering, Faculty of Engineering, Chulalongkorn University, has played a key role in producing skilled personnel and continuously advancing knowledge in the field, even during periods when nuclear power plant projects were put on hold.
“The key factor that first led to the slowdown of the project was the discovery of natural gas resources in the Gulf of Thailand around 1977. At the time, it was estimated that these natural gas reserves would last for at least 40 years, and even today, nearly 50 years later, they are still being utilized. As a result, the government decided to postpone nuclear power projects. Discussions about nuclear power plants tend to resurface periodically during times of energy crises.”
In addition to the availability of natural gas, another major obstacle to nuclear power development has been public understanding and acceptance. This challenge has been intensified by news of major accidents at large-scale nuclear power plants, such as the Chernobyl nuclear reactor explosion in Ukraine in 1986, or more recently, the Fukushima Daiichi nuclear disaster in Japan in 2011, which was triggered by a tsunami. Such events heightened public fear and uncertainty, leading to stronger opposition to the construction of nuclear power plants.
“Every time we are about to move forward with a project, an incident occurs that makes nuclear energy look bad—whether it’s Chernobyl or Fukushima. These events frighten people and cause projects to stall,” Assoc. Prof. Nares said, drawing a parallel with the criticism surrounding the Chula Tunnel, which has now been in use for over 40 years. “When the tunnel was first built, there was heavy criticism—people said it would be dangerous, that it would flood, that the road would collapse. Anything new, unfamiliar, or not well understood naturally causes fear. What we need to do is communicate accurate information about nuclear energy to the public as clearly as possible.”
Small Modular Reactors (SMR): The Future of Energy Security
Efforts by many countries around the world to achieve Net Zero targets have brought nuclear energy back into focus. This time, however, attention is not on large-scale nuclear power plants, such as those associated with past disasters and media headlines, but rather on a new hope for the global energy sector: Small Modular Reactors (SMRs).
“SMRs are modern nuclear power plants with a generating capacity of no more than 300 megawatts, which is much smaller than conventional nuclear power plants that typically have a capacity of around 1,000 megawatts,” explained Assoc. Prof. Dr. Somboon Rassame, Head of the Department of Nuclear Engineering, Faculty of Engineering, Chulalongkorn University.
At present, there are only two SMR facilities in actual operation worldwide. The first is in Russia, where the reactors are installed on a ship with a total generating capacity of 2 × 35 megawatts and have been in operation since 2020. The second is in China, with a generating capacity of approximately 210 megawatts, supplying electricity to the public since 2021.
“At present, there are several SMR power plant projects under construction. China, for example, is building one additional unit, which is expected to be completed by the end of this year. Canada has begun construction on four units, and the United States is preparing multiple sites for future construction,” Assoc. Prof. Dr. Somboon Rassame said. He anticipates that by the end of 2030, several SMRs will be in operation worldwide.
As for Thailand, after signing the NDC 3.0 (Nationally Determined Contribution), a commitment to reduce carbon dioxide emissions to achieve carbon neutrality by 2050 and net-zero greenhouse gas emissions by 2065, nuclear power projects have once again become a prominent topic in national development planning.
In the country’s energy security master plan—the latest 2024 draft of Thailand’s Power Development Plan (PDP) prepared by the Energy Policy and Planning Office (EPPO)—small nuclear power plants (Small Modular Reactors: SMRs) are being considered as a potential future option. The plan includes two SMR units, each with a capacity of approximately 300 megawatts, to be located in the northeastern and southern regions of Thailand, with operations expected to begin by 2037.
“Due to pressure from the global community regarding carbon emissions, Thailand has very limited options. In the future, everyone will be closely scrutinized over where their electricity comes from; if it is still generated from carbon-emitting sources, additional carbon taxes will be imposed,” Assoc. Prof. Dr. Somboon Rassame said. “Relying solely on renewable energy may not yet be sufficient and poses risks to the country’s electricity security. Wind and solar power have limitations in terms of continuity, while the use of battery storage increases costs. Natural gas and coal still emit large amounts of carbon. As a result, Thailand must now turn to alternative energy sources that can ensure safety and produce no carbon emissions.”
SMRs: A Leap Forward of Nuclear Technology for Enhanced Safety
Assoc. Prof. Dr. Somboon noted that SMRs offer several advantages, the first of which is flexibility. “If a large nuclear power plant is built, we must be confident that the area has sufficiently high electricity demand. However, SMRs can be built in medium-sized communities, on islands, or in industrial estates. Most importantly, SMRs allow additional generating units to be added in line with growing demand. For example, a project could begin with 100 megawatts in the first five years, and when demand increases, another 200 megawatts can be added. This offers greater flexibility and better supports economic growth than large power plants, which require a massive one-time investment.”
The most significant advantage of SMRs is their newly developed safety systems. Assoc. Prof. Dr. Somboon explained that nearly all SMR designs feature self-reliant safety systems that do not depend on external power supplies. Even in the event of a disaster or emergency where the plant will automatically shut down, the SMR’s safety systems will operate independently to safely bring the reactor to a halt. Emergency cooling in SMRs is also designed to be simpler and more self-sustaining, relying on natural cooling principles such as fluid circulation and gravity, rather than large volumes of coolant or water as required by large-scale plants. This significantly reduces the risk of reactor core meltdown and the release of radioactive materials into the environment, as occurred during the Fukushima nuclear accident in Japan in 2011.
3 Key Advantages of SMRs and Issues Requiring Careful Preparation
Assoc. Prof. Dr. Somboon Rassame outlined the advantages of SMRs in three main points as follows:
Safety: All 3 nuclear power plant accidents that have occurred worldwide involved plants built in the 1970s—more than 50 years ago. Since then, nuclear technology has advanced significantly. SMRs are equipped with passive safety systems that operate automatically without relying on external power sources. Even in the event of a disaster or power outage, the reactor can safely shut itself down. In addition, the smaller size of SMRs makes them easier to control and manage. Economics: The initial investment required for SMRs is lower than that for large-scale power plants, and they offer high flexibility. SMRs can be installed in remote areas, on islands, or in industrial estates that large power plants cannot easily reach. Moreover, generating units can be added according to demand, eliminating the need for a massive one-time investment. Environment: SMRs do not emit significant amounts of carbon dioxide throughout the operational lifetime of the plant. This helps Thailand achieve its Net Zero goals more quickly and effectively, while also providing a more reliable energy source than other forms of renewable energy.
Although SMRs are smaller than conventional nuclear power plants, they still raise the same issue of radioactive waste. Therefore, Thailand needs to develop concrete plans for managing radioactive waste in the future in accordance with international standards, while also building public confidence that the country has safe, transparent, and verifiable systems for the storage and disposal of waste from SMRs.
SMRs: Costs and Cost-Effectiveness
One of the questions the public is most interested in is, “If SMRs are introduced, will electricity prices become cheaper?”
Assoc. Prof. Dr. Somboon Rassame addressed this issue by saying, “SMRs are like any new product—much like when new smartphone models are first released. Naturally, the price will not be low at the beginning, but as more people use them, prices should decrease according to market mechanisms.”
Importantly, he emphasized that cost-effectiveness should not be assessed based on price alone, but should also take into account several key advantages, including:
Energy security – SMRs can generate electricity continuously 24 hours a day and are not dependent on weather conditions, unlike solar and wind energy. Carbon-free electricity generation – This helps the country avoid carbon taxes and maintain its competitiveness in terms of economic growth and investment. Flexibility – SMRs can be installed in remote areas and allow generating capacity to be expanded in line with demand.
ASEAN Moves Toward Nuclear Energy: Where Does Thailand Stand?
“At present, there are only two SMRs in operation worldwide, with another four to five projects beginning construction. Thailand does not plan to deploy SMR nuclear power plants this year or next year; according to current plans, implementation would be around 12 years from now. By that time, it is expected that SMR adoption will have increased globally, leading to lower costs and more reasonable pricing, making them more competitive with other types of power plants.”
Several neighboring countries are moving forward with nuclear energy projects in earnest. Assoc. Prof. Dr. Somboon Rassame noted that Vietnam has made more progress in developing nuclear power plants than Thailand, largely due to strong government support and direct endorsement from its leader. Indonesia is also advancing seriously, having built a solid research foundation related to nuclear power over many years. The country has developed its own nuclear fuel and plans to commission its first nuclear power plant by 2032. Meanwhile, the Philippines has plans to construct nuclear power plants, including SMRs, by 2033–2034.
“It is clear that many countries in this region are about 5 years ahead of Thailand. Therefore, if Thailand delays its decision to move forward with such projects, it will lose its competitive edge. This competition is not only about technology but also about the ability to attract investment. Countries that can produce clean, carbon-free energy are more likely to attract investors, especially in industries such as AI and data centers, which consume enormous amounts of electricity and require clean energy,” Assoc. Prof. Dr. Somboon explained.
Chula as a Knowledge and Workforce Hub: Preparing for SMRs
Establishing a nuclear power plant is not a simple undertaking, especially for countries that have never had one before. Assoc. Prof. Dr. Somboon Rassame explained that, according to International Atomic Energy Agency (IAEA) standards, countries without prior experience in nuclear power must spend at least 10–12 years on preparation. This readiness process must cover 19 key areas, such as: 1) human resources – sufficient numbers of well-trained engineers and experts; 2) laws and regulations – appropriate legal frameworks for regulation and oversight; 3) management planning – emergency preparedness plans and spent fuel management plans; 4) financing – clear financial support from the government.
“Having a nuclear power plant is not easy—it’s not something you decide today and purchase tomorrow. A country must demonstrate its capabilities and gain acceptance from the international community, nuclear power plant businesses, and IAEA, showing that it is truly ready to implement an SMR nuclear power project. The Department of Nuclear Engineering, Faculty of Engineering, Chulalongkorn University, has long played a key role in preparing the country in the nuclear field, particularly through the development of skilled human resources.”
“Whether or not there is a nuclear power plant project, the department continues to offer courses and conduct research. If we were to close the department or suspend teaching and research, the body of knowledge and expertise in nuclear engineering would be disrupted, and restarting would not be easy. Chulalongkorn University is a key institution for producing engineers, researchers, and specialists specifically in nuclear engineering. At present, many universities are beginning to show interest in establishing nuclear engineering programs, and Chulalongkorn University is ready to provide guidance and support in developing curricula to strengthen the country’s capacity for workforce development in nuclear power,” he said.
At present, the department is involved in preparing the country for nuclear engineering readiness through multiple channels.
Training programs – Short-term training courses of 18 hours are offered to the Electricity Generating Authority of Thailand (EGAT) and several private energy companies. This year, approximately 3-4 courses have already been conducted, with about 50 participants per cohort. Graduate production – The department has offered bachelor’s, master’s, and doctoral degree programs in nuclear and radiation engineering since 1972. To date, several hundred students have graduated at the master’s and doctoral levels. Academic services – The department provides consultation to private companies and government agencies on site selection, suitability assessments, project planning, and the selection of appropriate technologies.
Nuclear in Daily Life
Whether or not nuclear power plants are built, nuclear and radiation technologies have long been part of everyday life. Assoc. Prof. Nares explained this with several interesting examples, such as:
Medical applications – King Chulalongkorn Memorial Hospital is equipped with a proton therapy machine that uses radiation to treat cancer. This technology can deliver highly precise radiation to targeted areas, minimizing damage to surrounding organs compared with conventional radiation therapy. Food and pharmaceutical industries – Gamma irradiation is used to sterilize a wide range of products, from herbal inhalers that are currently gaining popularity to fermented pork, fruits, exported animal feed, syringes, and saline IV tubes used in hospitals. All of these products must undergo irradiation to eliminate pathogens. Quality control – In beverage manufacturing plants, radiation is used to measure liquid levels in bottles to ensure consistent volumes. In military weapons factories, X-rays are used for quality inspection. Even some brands of toothpicks undergo irradiation to prevent contamination.
“The Department of Nuclear Engineering at Chulalongkorn University has produced a large number of professionals who work across various industries. Therefore, even without nuclear power plants, nuclear knowledge is highly beneficial to society,” stated Assoc. Prof. Nares.
Rare Earth Elements and Nuclear Technology
Assoc. Prof. Nares further explained that another interesting dimension is the relationship between nuclear technology and rare earth elements, which are critical raw materials for modern technologies such as smartphones, electric vehicles, computer equipment, drones, and various electronic devices.
“Rare earth elements often contain traces of radioactive materials, so nuclear techniques can be used for exploration and analysis. In addition, there are many nuclear-based techniques that can be applied to survey, identify, and quantify rare earth elements. In the past, the Office of Atoms for Peace had a rare earth minerals project and even designed a processing plant, but the project was halted. It is not too late to resume development, as rare earth minerals are extremely important for high-tech industries,” he said.
Public Acceptance Is the Key to Success
Although SMRs offer many advantages and align well with energy security needs and Net Zero goals, they also present challenges that must be addressed. These include the country’s clarity and commitment in moving forward with such projects, the establishment of regulatory organizations and legal frameworks, and the development of qualified personnel—particularly as current enrollment in nuclear engineering programs remains insufficient. Most importantly, public acceptance is a critical factor.
The Fukushima nuclear power plant accident in 2011 may have reduced public acceptance of nuclear energy. However, Assoc. Prof. Dr. Somboon Rassame observed that over the past 3-4 years, as more information about SMRs has been disseminated, public opinion on social media has begun to shift. Many people now view SMRs as a newer, more advanced, and safer technology, with younger generations in particular showing a growing willingness to accept this form of energy.
“The role of educational institutions is to provide the public with clear and straightforward information about what this technology is, how it has been developed and improved, and how likely accidents are compared with nuclear power plants in the past. Institutions must present both the advantages and the limitations in a comprehensive manner. Once the public has been fully informed, the decision belongs to the people, and we must all accept the outcome,” Assoc. Prof. Dr. Somboon concluded.
“I would like to urge national leaders to allow qualified experts in nuclear engineering and nuclear technology to lead and manage the country’s key nuclear agencies, including the Office of Atoms for Peace (OAP) and the Thailand Institute of Nuclear Technology (TINT). This would allow our country to fully enter an era in which nuclear technology can be applied to national development across many sectors—energy, industry, agriculture, the environment, materials, and beyond,” Assoc. Prof. Nares added in closing.
Small Modular Reactors (SMRs) represent a significant opportunity that Thailand should prepare for. With greatly advanced technology, superior safety systems, installation flexibility, and, most importantly, carbon-free electricity generation, SMRs offer strong potential. Backed by more than half a century of accumulated commitment, knowledge, and experience, the Department of Nuclear Engineering, Faculty of Engineering, Chulalongkorn University, stands ready to play a role in advancing the country’s opportunity to achieve sustainable energy security.
In approximately 12 years, Thailand plans to begin operating its first SMR capable of actual electricity generation. Clean energy for a new era is within reach, and Thailand is preparing to move confidently toward that future.
Find more information on the Department of Nuclear Engineering, Faculty of Engineering, Chulalongkorn University, on Facebook: Nuclear Engineering, Chulalongkorn University
Continue reading a full article on the website: https://www.chula.ac.th/en/highlight/286177/
About Chulalongkorn University
Chulalongkorn University has made the world’s top 50 university list for employment outcomes, which reflects both the high employment rate and work ability of Chula graduates. The university is also listed as the best in Thailand for the 15th Consecutive Year (since 2009), according to the newly released QS World University Rankings 2024, putting Chula at 211th in the world, up from 244th last year.
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