The US Department of Energy (DOE) has issued a Notice of Intent (NOI) to fund up to $900m to support the initial deployment of Generation III+ small modular reactor (SMR) technologies. This funding. DOE said the funding, made possible in part by President Biden’s Bipartisan Infrastructure Law, will help to strengthen the US domestic nuclear industry. It will also spur follow-on reactor projects, which are vital to achieving clean energy and climate goals and meeting the growing demand for clean, reliable power.
“President Biden is determined to ensure nuclear power – the nation’s single largest source of carbon free electricity – continues to serve as a key pillar of our nation’s transition to a safe and secure clean energy future,” said Secretary of Energy Jennifer M Granholm. She added that the announcement “will support early movers in the nuclear sector as we seek to scale up nuclear power and reassert American leadership in this critical energy industry”.
Assistant to the President and National Climate Advisor Ali Zaidi noted: “We are partnering with stakeholders to reinvigorate the existing nuclear fleet, jumpstart new reactor technologies, and onshore critical fuel production. The path to greater energy security and more climate solutions runs through investments like these.”
DOE estimates the US will need approximately 700-900 GW of additional clean, firm capacity energy to reach net-zero emissions by 2050. “Nuclear power is a proven option that could be deployed to meet this need, including the growing demand from artificial intelligence and other data centres and the reshoring of manufacturing, while creating high-paying jobs with concentrated economic benefits for communities most impacted by the energy transition,” DOE noted. In accordance with the Department’s Pathways to Advanced Nuclear Commercial Liftoff report, establishing a committed orderbook of reactors in the near-term is critical to accelerating technology learning and reducing deployment costs.
DOE said SMRs are versatile and can be safely deployed in a variety of settings due to their small footprint, more modular design, factory-based construction, and use of established fuel supply chains, which all serve to lower overall project costs. SMRs can also meet smaller localised power demands and can be scaled up for larger demand or used in complement with renewables.
DOE anticipates offering funding in two tiers:
Tier 1: First Mover Team Support, managed by the Office of Clean Energy Demonstrations (OCED), plans to provide up to $800m to support up to two first-mover teams of utility, reactor vendor, constructor, and end-users or power off-takers committed to deploying a first plant while at the same time facilitating a multi-reactor, Gen III+ SMR orderbook.
Tier 2: Fast Follower Deployment Support, managed by the Office of Nuclear Energy (NE), plans to 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.
