Nuclear

DOE opens applications for $900M for next gen nuclear tech deployment

DOE plans to use this funding to spur the deployment of advanced reactor technologies across the country and encourage follow-on reactor projects.
DOE opens applications for $900M for next gen nuclear tech deployment
Holtec’s Dual-Unit SMR-300 Small Modular Nuclear Plant in Perspective View (Credit: Holtec)

The U.S. Department of Energy (DOE) has opened applications for up to $900 million in funding to support the initial domestic deployment of Generation III+ small modular reactor (SMR) technologies.

DOE plans to use this funding to spur the deployment of advanced reactor technologies across the country and encourage follow-on reactor projects. The funding is meant to assist the private sector in establishing a “credible and sustainable” pathway to deploying a fleet of Gen III+ SMRs across the country.

“Revitalizing America’s nuclear sector is key to adding more carbon free energy to the grid and meeting the needs of our growing economy—from AI and data centers to manufacturing and healthcare,” said U.S. Secretary of Energy Jennifer M. Granholm. “Thanks to the President and Vice President’s Investing in America agenda, the nation’s nuclear industry is poised to lead the world in innovative advanced reactor technologies, which will create high-paying jobs while providing the flexible and reliable clean energy we need to support a thriving clean energy future.” 

Created by the Consolidated Appropriations Act of 2024 and utilizing funds from President Biden’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), will provide up to $800M for milestone-based awards to support up to two first mover teams of utility, reactor vendor, constructor, and end-users/off-takers committed to deploying a first plant while facilitating a multi-reactor, Gen III+ SMR orderbook and the opportunity to work with the National Nuclear Security Administration (NNSA) to incorporate safeguards and security by design into the projects. 
  • Tier 2: Fast Follower Deployment Support, managed by the Office of Nuclear Energy (NE), will 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. 

For Tier 1, teams must include a U.S. utility, reactor technology vendor, and engineering, procurement, and construction (EPC) company with the lead applicant being the utility, end-user/off-taker, a development company, or incorporated consortium. Tier 2 funding is sorted into three different categories, for which applicants must be either planned project owners or utilities, or entities looking to improve the capability, capacity, or cost competitiveness of the domestic supply chain for Gen III+ SMRs. 

DOE estimates the U.S. will need approximately 700-900 GW of additional clean, firm power generation capacity to reach net-zero emissions by 2050. Nuclear power is a proven option that could be deployed to meet this growing demand. In 2023, nuclear energy provided nearly half of America’s carbon-free electricity.

Utilities are looking to extend the lifespan of current nuclear reactors, planning to uprate reactor capacity, reversing plans to close reactors, and even restarting formerly closed reactors, DOE said. At the same time, they are earnestly exploring building new reactors to meet the fast-growing demand for carbon-free energy.

Applications are due on January 17, 2025, at 5pm ET. For more information, visit the Gen III+ SMR engagement webpage here.