The U.S. Department of Energy has confirmed that it is going to offer almost $800 million in order to support the development of small modular reactors by the Tennessee Valley Authority as well as Holtec, the private company.
The Trump administration, along with certain nuclear companies, goes on to believe that Small Modular Reactors are going to help supply electricity to the U.S., where the demand for power is seen growing for the first time in two decades when it comes to artificial intelligence, cryptocurrency mining as well as electric vehicles.
Backers opine that the SMRs could help cut costs as well, since they are expected to be built in factories. However, no such reactors are under construction in the U.S., and there are questions that do exist pertaining to whether they can offer power as cheaply as what today’s larger reactors do. Nuclear power also goes on to create radioactive waste which is long-lasting for which there’s no permanent repository.
A U.S.-owned power utility, TVA, is all set to receive almost $400 million in terms of federal cost-shared funding when it comes to the development of a GE Vernova Hitachi BWRX-300 at its Clinch River site located in Tennessee as well as other projects, the Energy Department confirmed.
Holtec is also going to receive almost $400 million and plans to build a couple of SMRs at its Palisades, Michigan, site. Holtec is also hoping to go ahead and reopen the 800-megawatt Palisades conventional reactor in 2025 itself, which was shut in 2022 after operating for over 50 years.
The plant had already secured a loan guarantee of a $1.52 billion loan at the time of former President Joe Biden’s regime, and to this point, the loan office of the Energy Department has already disbursed over $490 million in terms of financing.
Notably, the Energy Department anticipates the SMRs to get developed as early as the 2030s. According to Chris Wright, the Energy Secretary, these awards make sure that they can roll out these reactors as early as possible.