GHG Emissions  -  October 18, 2024

DOE Allocates $900 Million to Build Next Gen Nuclear Tech

The U.S. Department of Energy (DOE) opened applications for up to $900 million in funding to support the initial domestic deployment of Generation III+ (Gen III+) small modular reactor (SMR) technologies. 

The funding is intended to spur the safe and responsible deployment of advanced reactor technologies across the U.S. and encourage follow-on reactor projects to support climate goals.

“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 data centers to manufacturing and healthcare,” said U.S. Secretary of Energy Jennifer M. Granholm in a statement. “Thanks to the President and Vice President’s Investing in America agenda, the nation’s nuclear industry is poised to lead the world in innovative advanced reactor technologies, which will create high-paying jobs while providing the flexible and reliable clean energy we need to support a thriving clean energy future.” 

The U.S. will need approximately 700-900 GW of additional clean, firm power generation capacity to reach net-zero emissions by 2050, according to DOE estimates. Nuclear power is a proven option that could be deployed to meet this growing demand. 

In 2023, nuclear energy provided nearly half of America’s carbon-free electricity. Utilities are looking to extend the lifespan of current nuclear reactors, planning to uprate reactor capacity, reversing plans to close reactors and restarting formerly closed reactors. At the same time, they are earnestly exploring building new reactors to meet the fast-growing demand for carbon-free energy. 

Designed with a variety of capabilities, sizes, and deployment scenarios in mind, SMRs can be used for power generation, process heat, desalination and more. 

Created by the Consolidated Appropriations Act of 2024 and utilizing funds from President Biden’s Bipartisan Infrastructure Law, DOE anticipates offering funding in two tiers: 

• Tier 1: First Mover Team Support, managed by the Office of Clean Energy Demonstrations (OCED), will provide up to $800M for milestone-based awards to support up to two first mover teams of utility, reactor vendor, constructor, and end-users/off-takers committed to deploying a first plant while facilitating a multi-reactor, Gen III+ SMR orderbook and the opportunity to work with the National Nuclear Security Administration (NNSA) to incorporate safeguards and security by design into the projects. 
• Tier 2: Fast Follower Deployment Support, managed by the Office of Nuclear Energy (NE), will provide up to $100M to spur additional Gen III+ SMR deployments by addressing key gaps that have hindered the domestic nuclear industry in areas such as design, licensing, supplier development, and site preparation.

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