U.S. NUCLEAR INVESTMENT 0.9 BLN

U.S. DOE - October 16, 2024 - As part of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of Energy (DOE) today 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. DOE plans to use this funding—made possible in part by President Biden’s Bipartisan Infrastructure Law—to spur the safe and responsible deployment of advanced reactor technologies across the country and encourage follow-on reactor projects to support our nation's ambitious climate goals and meeting the growing demand for clean, reliable, and affordable power. Today’s announcement aims to assist the private sector in establishing a credible and sustainable pathway to deploying a fleet of Gen III+ SMRs across the country that advances environmental protection and community benefits, creates new, good-paying, high-quality jobs, and reinforces America’s leadership in the nuclear industry.

“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. “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.”

“Next-generation nuclear energy will play an important role in building the clean power sector of the future,” said Senior Advisor to the President for International Climate Policy John Podesta. “Today’s funding will boost American innovation, bolster our national security, and tackle the climate crisis.”

“President Biden and Vice President Harris made a big bet on America’s energy potential, and this Administration’s investments to jumpstart our nuclear future are paying off in a big way,” said White House National Climate Advisor Ali Zaidi. “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. America’s nuclear industry is racing ahead because strong Biden-Harris policies are spurring billions in private sector investment into this critical technology, which will lower energy costs and create good-paying union jobs.”

DOE estimates the U.S. will need approximately 700-900 GW of additional clean, firm power generation capacity to reach net-zero emissions by 2050. 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 even 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. In particular, SMRs offer the potential for greater modularity, more factory-style construction, and the ability to be matched with loads and scaled to meet demand. Additionally, 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.

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.

For Tier 1, teams must include a U.S. utility, reactor technology vendor, and engineering, procurement, and construction (EPC) company with the lead applicant being the utility, end-user/off-taker, a development company, or incorporated consortium. Tier 2 funding is sorted into three different categories, for which applicants must be either 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.

These investments advance the President’s Justice40 Initiative, which sets a goal that 40% of the overall benefits of certain federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. 

-----