Nuclear

DOE doles out $900 million for next-gen small modular reactor deployment

The anticipated funding aims to promote the advanced reactor orderbook and prepare the domestic nuclear industry for deployments.
DOE doles out $900 million for next-gen small modular reactor deployment
The AP300 Small Modular Reactor (Photo: Business Wire)

The U.S. Department of Energy (DOE) issued a Notice of Intent (NOI) to fund up to $900 million to support the initial U.S. deployments of Generation III+ small modular reactor (SMR) technologies.

DOE estimates the U.S. will need approximately 700-900 GW of additional clean, firm capacity to reach net-zero emissions by 2050, and it says nuclear power is a proven option that could be deployed to meet this need, including the growing demand from artificial intelligence and other data centers and the reshoring of manufacturing.

Created by the Consolidated Appropriations Act of 2024 and funded by the President’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), 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.  

DOE anticipates releasing a funding solicitation in late summer or fall of 2024.

DOE said projects are expected to (1) support meaningful community and labor engagement; (2) invest in quality jobs; (3) advance diversity, equity, inclusion, and accessibility; and (4) contribute to the goal that 40% of the overall benefits of certain federal investments flow to disadvantaged communities (the Justice40 Initiative). The strength of a proposal’s community benefits, including a project’s impact on equity and environmental justice, will be considered when reviewing applications. 

“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 U.S. Secretary of Energy Jennifer M. Granholm. “Today’s 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.”