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Released December 27, 2024 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Despite their many differences, outgoing president Joe Biden and president-elect Donald Trump share a commitment to boosting U.S. nuclear power, though for different reasons. President Biden sees nuclear power as an important emissions-free source of electric generation that can help fight global warming. President-elect Trump sees an expanded U.S. nuclear profile as part of his goal of achieving "energy dominance."
At last year's U.N. summit on climate change, the U.S. joined two dozen other nations in agreeing to triple worldwide nuclear generation by 2050 as part of a plan to "transition away from fossil fuels" and fight global warming.
Trump has no use for the annual Convention on Climate Change (COP) conferences or the Paris Agreement itself. He has mocked the idea that human activities like power generation or vehicles powered by internal-combustion engines could be heating up the atmosphere, despite overwhelming evidence from the scientific community. To the extent he discussed energy at all on the campaign trail, it was to advocate for "energy dominance," a future where the U.S. could use its energy assets to engage in "energy diplomacy." Either as a carrot or stick, energy could be used as a bargaining chip to support Trump's favored national leaders or punish those with whom he has crossed swords.
Trump's nominee for Energy Secretary, Chris Wright, chief executive of Liberty Energy Incorporated (NYSE:LBRT) (Denver, Colorado), is a nuclear enthusiast.
And U.S. utilities have been rattled by sharply rising electric demand growth projections stemming from data centers, bitcoin manufacturing, semiconductor fabrication plants, hydrogen facilities and other large industrial loads. A growing number of U.S. utilities have plans to construct nuclear generators.
Industrial Info is tracking 58 nuclear energy capital projects (excluding demolition, dismantlement and decommissioning projects) valued at nearly $74 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for the project reports.
The utilities most actively investigating new-build nuclear generation are Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) and the Tennessee Valley Authority (NYSE:TVE) (TVA) (Knoxville, Tennessee).
All of those reasons suggest that the incoming Trump administration may continue, even expand, initiatives by the Biden administration to enhance nuclear energy.
The Biden administration recently took a number of steps to support the expansion of U.S. nuclear power.
On October 8, the administration announced contracts to spur the creation of a supply chain for high-assay low-enriched uranium (HALEU) fuel, to be used by advanced nuclear reactors, including small modular reactors (SMRs). Currently, only Russia provides that fuel. Six companies received a minimum of $2 million each. The total available funding is up to $800 million, depending on annual appropriations.
The six companies include: BWX Technologies Incorporated (NYSE:BWXT) (Lynchburg, Virginia); Centrus Energy Corporation (NYSE America:LEU) (Bethesda, Maryland); Framatome (Lynchburg, Virginia); GE Vernova Incorporated (NYSE:GEV) (Cambridge, Massachusetts); Orano Group (Bethesda, Maryland); and Westinghouse Electric Company (Cranberry Township, Pennsylvania).
The DOE said the HALEU the agency acquires through these contracts will be used to support reactors like those under development through its Advanced Reactor Demonstration Program: TerraPower's (Bellevue, Washington) Natrium reactor and X-energy's (Rockville, Maryland) Xe-100.
In a separate October announcement, the DOE selected four companies to compete to provide fuel-enrichment services to help establish a U.S. supply of HALEU. Those companies are: Louisiana Energy Services, LLC (Eunice, New Mexico), a unit of Urenco USA Incorporated (Eunice, New Mexico); Orano; General Matter (San Francisco, California); and American Centrifuge Operating LLC, a unit of Centrus Energy Corporation. All contracts will last for up to 10 years and each awardee receives a minimum contract of $2 million, with up to $2.7 billion available for these services, subject to the availability of appropriations.
In a third October announcement, the Biden administration announced it was opening competition for $900 million in funding to support the construction and deployment of next-generation nuclear technologies. This funding is designed to advance the development of Generation III+ light-water SMRs. Applications are due on January 17, 2025, less than one week before the end of the Biden administration.
In September, the DOE announced the availability of $100 million in funding to establish a nuclear safety training and workforce development program.
All of these measures, and more, are detailed in a 37-page report, released last month, titled "Safely and Responsibly Expanding U.S. Nuclear Energy: Deployment Targets and A Framework for Action." The report appears designed to shorten the next administration's learning curve on what the federal government is doing, and could do, to support the deployment of commercial nuclear power.
The report identified more than 30 actions the U.S. government could take under existing statutory authorities, and also includes actions that the U.S. nuclear industry and power customers can take, to enable successful deployments. This framework recognizes the importance of licensing and permitting, workforce, component supply chains, fuel cycle supply chains, and spent fuel management on reactor deployment, and identifies key opportunities associated with each of these topics.
"Achieving economy-wide, net-zero GHG emissions in the United States by 2050 requires the installation of approximately 1,500 to 2,000 gigawatts (GW) of carbon-free power generation," the report noted. "Of this, according to U.S. government and external modeling, about 30% to 50% will need to be clean, dispatchable electric generating capacity. It identified several specific technologies that fit those criteria: nuclear power, advanced geothermal and renewables paired with long-duration energy storage.
It continued: "A timely expansion of domestic nuclear power will require a diverse set of technologies to meet the unique needs of power customers, including grid-based power, behind-the-meter resilient power, industrial heat and remote and transportable power. It will also require power customers with large power needs and carbon-free commitments to work creatively with utilities to help share project risks commensurate with resulting benefits of successful deployment."
The framework said scaling up domestic nuclear energy was a climate, economic and national security priority. The report also looked beyond U.S. borders to consider export markets. Most overseas nuclear projects under development use Chinese or Russian reactor designs. It acknowledged that potential overseas customers "typically want new reactor technologies demonstrated in the supplier country before building them in their own country. Domestic deployments will enable exports and provide a pathway for the United States to regain leadership in the international nuclear energy market and supply chain."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
At last year's U.N. summit on climate change, the U.S. joined two dozen other nations in agreeing to triple worldwide nuclear generation by 2050 as part of a plan to "transition away from fossil fuels" and fight global warming.
Trump has no use for the annual Convention on Climate Change (COP) conferences or the Paris Agreement itself. He has mocked the idea that human activities like power generation or vehicles powered by internal-combustion engines could be heating up the atmosphere, despite overwhelming evidence from the scientific community. To the extent he discussed energy at all on the campaign trail, it was to advocate for "energy dominance," a future where the U.S. could use its energy assets to engage in "energy diplomacy." Either as a carrot or stick, energy could be used as a bargaining chip to support Trump's favored national leaders or punish those with whom he has crossed swords.
Trump's nominee for Energy Secretary, Chris Wright, chief executive of Liberty Energy Incorporated (NYSE:LBRT) (Denver, Colorado), is a nuclear enthusiast.
And U.S. utilities have been rattled by sharply rising electric demand growth projections stemming from data centers, bitcoin manufacturing, semiconductor fabrication plants, hydrogen facilities and other large industrial loads. A growing number of U.S. utilities have plans to construct nuclear generators.
Industrial Info is tracking 58 nuclear energy capital projects (excluding demolition, dismantlement and decommissioning projects) valued at nearly $74 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for the project reports.
The utilities most actively investigating new-build nuclear generation are Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) and the Tennessee Valley Authority (NYSE:TVE) (TVA) (Knoxville, Tennessee).
All of those reasons suggest that the incoming Trump administration may continue, even expand, initiatives by the Biden administration to enhance nuclear energy.
The Biden administration recently took a number of steps to support the expansion of U.S. nuclear power.
On October 8, the administration announced contracts to spur the creation of a supply chain for high-assay low-enriched uranium (HALEU) fuel, to be used by advanced nuclear reactors, including small modular reactors (SMRs). Currently, only Russia provides that fuel. Six companies received a minimum of $2 million each. The total available funding is up to $800 million, depending on annual appropriations.
The six companies include: BWX Technologies Incorporated (NYSE:BWXT) (Lynchburg, Virginia); Centrus Energy Corporation (NYSE America:LEU) (Bethesda, Maryland); Framatome (Lynchburg, Virginia); GE Vernova Incorporated (NYSE:GEV) (Cambridge, Massachusetts); Orano Group (Bethesda, Maryland); and Westinghouse Electric Company (Cranberry Township, Pennsylvania).
The DOE said the HALEU the agency acquires through these contracts will be used to support reactors like those under development through its Advanced Reactor Demonstration Program: TerraPower's (Bellevue, Washington) Natrium reactor and X-energy's (Rockville, Maryland) Xe-100.
In a separate October announcement, the DOE selected four companies to compete to provide fuel-enrichment services to help establish a U.S. supply of HALEU. Those companies are: Louisiana Energy Services, LLC (Eunice, New Mexico), a unit of Urenco USA Incorporated (Eunice, New Mexico); Orano; General Matter (San Francisco, California); and American Centrifuge Operating LLC, a unit of Centrus Energy Corporation. All contracts will last for up to 10 years and each awardee receives a minimum contract of $2 million, with up to $2.7 billion available for these services, subject to the availability of appropriations.
In a third October announcement, the Biden administration announced it was opening competition for $900 million in funding to support the construction and deployment of next-generation nuclear technologies. This funding is designed to advance the development of Generation III+ light-water SMRs. Applications are due on January 17, 2025, less than one week before the end of the Biden administration.
In September, the DOE announced the availability of $100 million in funding to establish a nuclear safety training and workforce development program.
All of these measures, and more, are detailed in a 37-page report, released last month, titled "Safely and Responsibly Expanding U.S. Nuclear Energy: Deployment Targets and A Framework for Action." The report appears designed to shorten the next administration's learning curve on what the federal government is doing, and could do, to support the deployment of commercial nuclear power.
The report identified more than 30 actions the U.S. government could take under existing statutory authorities, and also includes actions that the U.S. nuclear industry and power customers can take, to enable successful deployments. This framework recognizes the importance of licensing and permitting, workforce, component supply chains, fuel cycle supply chains, and spent fuel management on reactor deployment, and identifies key opportunities associated with each of these topics.
"Achieving economy-wide, net-zero GHG emissions in the United States by 2050 requires the installation of approximately 1,500 to 2,000 gigawatts (GW) of carbon-free power generation," the report noted. "Of this, according to U.S. government and external modeling, about 30% to 50% will need to be clean, dispatchable electric generating capacity. It identified several specific technologies that fit those criteria: nuclear power, advanced geothermal and renewables paired with long-duration energy storage.
It continued: "A timely expansion of domestic nuclear power will require a diverse set of technologies to meet the unique needs of power customers, including grid-based power, behind-the-meter resilient power, industrial heat and remote and transportable power. It will also require power customers with large power needs and carbon-free commitments to work creatively with utilities to help share project risks commensurate with resulting benefits of successful deployment."
The framework said scaling up domestic nuclear energy was a climate, economic and national security priority. The report also looked beyond U.S. borders to consider export markets. Most overseas nuclear projects under development use Chinese or Russian reactor designs. It acknowledged that potential overseas customers "typically want new reactor technologies demonstrated in the supplier country before building them in their own country. Domestic deployments will enable exports and provide a pathway for the United States to regain leadership in the international nuclear energy market and supply chain."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
