- DOE providing up to $900 million for initial U.S. deployments of Generation III+ small modular reactor (SMR) technologies
- Funding aims to strengthen domestic nuclear industry, support clean energy and climate goals
- Notice of intent issued by DOE’s Office of Clean Energy Demonstrations and Office of Nuclear Energy
- Funding to be executed through two tiers: Tier 1 for first-mover teams, Tier 2 to address key gaps hindering industry
- SMRs are versatile, can be deployed in various settings, and complement renewables; part of global energy investment shift towards clean technologies
DOE to Fund Small Modular Reactor Tech with Up to $900MM
The U.S. Department of Energy (DOE) has announced a significant funding initiative of up to $900 million to support the initial U.S. deployments of Generation III+ small modular reactor (SMR) technologies. This funding is aimed at strengthening America’s domestic nuclear industry and catalyzing follow-on reactor projects to help achieve the nation’s ambitious clean energy and climate goals. The DOE’s Office of Clean Energy Demonstrations (OCED) in collaboration with the Office of Nuclear Energy (NE) issued a notice of intent to focus resources on a credible pathway to fleet-level deployment of Gen III+ SMRs.
Overview of the Funding Initiative
The DOE is set to release a funding solicitation in the late summer or fall, with the funding to be executed through two tiers. Tier 1 will offer up to $800 million to support up to two first-mover teams comprising utility, reactor vendor, constructor, and end-users/off-takers committed to deploying the first plant. Tier 2 will provide up to $100 million to incentivize additional Gen III+ SMR deployments by addressing key gaps that have hindered the domestic nuclear industry in areas like design, licensing, supplier development, and site preparation.
This funding initiative is a significant step towards advancing nuclear power, which is the nation’s largest source of carbon-free electricity. U.S. Secretary of Energy Jennifer Granholm emphasized the importance of nuclear power in transitioning to a clean energy future, highlighting President Biden’s commitment to ensuring nuclear power plays a pivotal role in the nation’s energy landscape.
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Supporting Clean Energy Goals and Economic Growth
Assistant to the President and National Climate Advisor Ali Zaidi underscored President Biden’s efforts in expanding clean energy production and fostering innovation in the nuclear industry. The investment in nuclear power is seen as a crucial element in meeting clean energy objectives and creating high-quality, union jobs across the country. Zaidi emphasized the administration’s commitment to revitalizing the existing nuclear fleet, promoting new reactor technologies, and enhancing domestic fuel production to bolster energy security and address climate challenges.
The funding allocated by the DOE represents a substantial and sustained push to bolster civil nuclear deployment in the USA, marking a significant milestone in advancing nuclear energy. Small Modular Reactors (SMRs) are highlighted for their versatility and safety, making them suitable for deployment in various settings, from remote areas to urban environments. Their small footprint, modular design, factory-based construction, and use of established fuel supply chains contribute to lower overall project costs, making SMRs an attractive option for meeting localized power needs.
Global Energy Investment Trends
In a broader context, the International Energy Agency (IEA) recently reported that a significant portion of global energy investments are being directed towards clean technologies. The IEA’s World Energy Investment report revealed that around two-thirds of global energy investments this year are earmarked for clean technologies such as renewables, electric vehicles, nuclear power, grids, storage, low-emission fuels, efficiency improvements, and heat pumps. Total energy investments worldwide are expected to exceed $3 trillion for the first time, with a substantial portion allocated to advancing clean energy solutions.
The DOE’s funding initiative for small modular reactor technology underscores the importance of nuclear power in achieving clean energy goals and driving economic growth. The support provided to Gen III+ SMRs is a significant step towards enhancing the nation’s energy security, reducing carbon emissions, and fostering innovation in the nuclear industry. Through strategic investments and partnerships, the USA is poised to lead in the development and deployment of advanced nuclear technologies, contributing to a more sustainable and resilient energy future.
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