Energy department distributes $800M in grants for small nuclear reactors

The U.S. Department of Energy has granted a total of $800 million to support the development of small nuclear reactors, splitting the funds evenly between two companies. The Tennessee Valley Authority (TVA) and Holtec International are each set to receive $400 million to advance their small modular reactor (SMR) projects using established nuclear fission technology.

TVA plans to construct a single 300-megawatt reactor in Tennessee in partnership with GE Vernova Hitachi, while Holtec will build two 300-megawatt reactors in Michigan. These initiatives reflect a growing interest from technology firms in nuclear energy, driven by the rising electricity demands associated with artificial intelligence operations.

The reactors fall under the Generation III+ category, representing improvements on long-standing reactor designs. By scaling them down to modular sizes, developers aim to reduce costs through mass production and increased efficiency in construction and engineering processes.

Currently, only two small modular reactors are in operation worldwide, according to the World Nuclear Association, highlighting the early stage of this emerging nuclear technology sector.

Author: Benjamin Carter