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Dec 2 (Reuters) – The U.S. Department of Energy said on Tuesday it will provide up to $800 million to support development of small modular reactors by the Tennessee Valley Authority and private company Holtec.
The Trump administration and nuclear companies believe SMRs will help supply electricity to the U.S. where power demand is rising for the first time in two decades on artificial intelligence, cryptocurrency mining and electric vehicles.
Backers say SMRs could save costs because they are expected to be built in factories. But no such reactors are under construction in the United States and questions exist about whether they can provide power as cheaply as today’s larger reactors. Nuclear power also creates long-lasting radioactive waste for which there is no permanent repository.
TVA, a U.S.-owned power utility, will receive up to $400 million in federal cost-shared funding for development of a GE Vernova Hitachi BWRX-300 at the Clinch River site in Tennessee and other projects, the Energy Department said.
Holtec, which will also receive up to $400 million, plans to build two SMRs at its Palisades, Michigan, site. Holtec is hoping to reopen the 800-megawatt Palisades conventional reactor this year, which shut in 2022 after operating for more than 50 years.
The plant secured a $1.52 billion loan guarantee during former President Joe Biden’s administration, and so far the Energy Department’s loan office has disbursed more than $490 million of the financing.
The Energy Department expects the SMRs to be developed by the early 2030s. “These awards ensure we can deploy these reactors as soon as possible,” Energy Secretary Chris Wright said in a press release.
Reporting by Ismail Shakil in Ottawa and Timothy Gardner in Washington; Editing by Leslie Adler and Matthew Lewis
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