The U.S. Department of Energy on June 17 issued a notice of intent to fund up to $900 million to support the initial U.S. deployments of small modular reactor technologies.
DOE estimates the U.S. will need approximately 700-900 GW of additional clean, firm capacity to reach net-zero emissions by 2050.
The NOI is available on DOE’s website.
“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, while creating high-paying jobs with concentrated economic benefits for communities most impacted by the energy transition,” it said.
Per the Department’s Pathways to Advanced Nuclear Commercial Liftoff report, establishing a committed orderbook of reactors in the near-term is critical to accelerating technology learning and reducing deployment costs, it said.
“SMRs are versatile and can be safely deployed in a variety of settings, from remote to urban, from front-of and behind-the-meter, due to their small footprint, more modular design, factory-based construction, and use of established fuel supply chains, which all serve to lower overall project costs. SMRs also have the ability to meet smaller localized power demands and can be scaled up for larger demand or used in complement with renewables,” DOE said.
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/fall of 2024.
To support the goal of building a clean and equitable energy economy, 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.
For more information, visit the Gen III+ Small Modular Reactor engagement webpage here. Potential applicants may wish to register for the informational webinar on July 9, 2024 here.
DOE also plans to hold an in-person Industry Day in August to facilitate partnerships among eligible applicant teams. Due to space constraints, Industry Day attendance will be prioritized for utilities, reactor vendors, constructors, end-users/off-takers, and members of the supply chain. Learn more, here.
