DOE offers $900M to propel next-gen reactors for growing power demand

The US Department of Energy announced $900 million in funding will be made available for next-generation nuclear technologies to meet growing demand for clean energy.

DOE opened applications Oct. 16 for funding to support initial domestic deployment of Generation III+ small modular reactors. The department said it plans to allocate the funding to spur "safe and responsible deployment" of advanced reactor technologies and ensure follow-on reactor projects to support national climate goals. The funding was authorized in the 2021 federal infrastructure law.

"Revitalizing America's nuclear sector is key to adding more carbon-free energy to the grid and meeting the needs of our growing economy — from AI and datacenters to manufacturing and healthcare," US Energy Secretary Jennifer Granholm said in a statement.

DOE has estimated that the US will need about 700 GW to 900 GW of additional clean, firm power capacity to reach net-zero carbon emissions by 2050.

Under the 2024 Consolidated Appropriations Act, DOE anticipates offering the $900 million in two tiers. The first tier, managed by the Office of Clean Energy Demonstrations, will provide up to $800 million for milestone-based awards to support up to two first-mover teams of utility, reactor vendor, constructor and end users/offtakers committed to deploying a first plant while facilitating a multi-reactor, next-generation order book. The teams will have the opportunity to work with the National Nuclear Security Administration to incorporate safeguards and security by design in the projects.

The second tier, managed by the Office of Nuclear Energy, will provide up to $100 million to spur additional next-generation SMR deployments by addressing gaps hindering the domestic nuclear industry in areas including design, licensing, supplier development and site preparation. Second-tier applicants must be planned project owners or utilities, or entities "looking to improve the capability, capacity, or cost competitiveness of the domestic supply chain for Gen III+ SMRs," DOE said.

Applications are due Jan. 17.

Nuclear 'resurgence'

Nuclear provided nearly half of US carbon-free electricity in 2023, and utilities across the country are looking to extend the lifespans of existing reactors, reverse plans to retire reactors or restart reactors shuttered in recent years. Completion of Southern Co.'s Alvin W. Vogtle Nuclear Plant expansion earlier this year spurred debate about the future of US nuclear energy, including large and small-scale reactors.

"All across the country, we are seeing a muscular resurgence in American energy innovation — from bringing back previously shuttered nuclear plants to bringing online new technologies and new reactors," White House National Climate Advisor Ali Zaidi said.

There are no commercial SMRs providing electricity to the grid so far in the US, though several companies and utilities are exploring designs of various sizes, capabilities and deployment scenarios.

SMRs can be used for power generation, process heat, desalination and more, according to DOE. SMRs are designed to have more factory-constructed components and to have the ability to match loads and scale to meet different demand needs.

"Gen III+ SMRs may be able to revitalize and leverage the expertise, workforce and supply chains supporting the existing fleet of large light-water reactor designs, thus providing a near-term path for new nuclear deployments and operation," DOE said in its announcement.

President Joe Biden signed legislation in July known as the ADVANCE Act to support advanced reactor development by reducing NRC licensing times and cutting application review fees required to be paid by the nuclear industry.