The message from industry is clear: for most companies, having small modular nuclear reactors (SMRs) dedicated to heat production (0–500°C) is not suitable, except for specific applications. District heating network operators (RCU), on the other hand, see them as a credible lever. Heat is the leading energy use, accounting for 40% of final energy consumption in France, most often supplied by fossil fuels. In November 2025, we interviewed 40 industrial players and district heating network operators to understand whether nuclear heat could be an alternative to what are, very often, gas boilers.
The 30 industrial players interviewed point to:
– typically very short investment horizons (ROI over 3–8 years), incompatible with capital-intensive thermal assets amortized over 20–30 years;
– sites that are mostly too small or too dispersed to justify a dedicated installation;
– limited process compatibility, with temperatures often high (>500°C) and fast ramp rates;
– a target SMR price of €50–70/MWhth considered acceptable, but which represents a floor price for a very long-term investment;
– acceptability constraints, regulatory constraints, and the absence of subsidies.
By contrast, district heating network operators (RCU) are favorable regarding:
– long-term investments (20 to 30 years) aligned with nuclear investment cycles;
– the widespread rollout of low-temperature networks (80–110°C, 3–5 bar), compatible with all heat-producing SMRs;
– a target cost of €50–70/MWhth considered stable and competitive in the face of gas price volatility, the decline of subsidized biomass, and the limits of geothermal energy.
Heat-producing SMRs therefore have a role to play in the energy transition, whether for district heating networks or certain specific industrial applications.