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Researched by Industrial Info Resources (Sugar Land, Texas)--In 2017, there were four nuclear reactors under construction at two plants in the U.S., but by the end of the year, that figure was down to the two reactors being built by Southern Company (NYSE:SO) (Atlanta, Georgia) at the Vogtle Nuclear Generating Plant in Georgia. That project went substantially overtime and, with a price tag in excess of $30 billion, ended up being more than twice than original cost estimates.
To avoid similar results, the owners of the two reactors under construction in South Carolina cancelled their project less than 40% into construction. The owners, South Carolina power provider Santee Cooper (Moncks Corner, South Carolina) and South Carolina Electric & Gas (now part of Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia)), exited the project having jointly spent about $9 billion, when the entire project from start to completion had been originally estimated at less than $10 billion.
Another death knell for the reactors sounded in 2017 when designer and builder Westinghouse Electric (Cranberry Township, Pennsylvania) filed for Chapter 11 bankruptcy.
While Dominion continues to operate the Unit 1 reactor at the plant, which was built in 1982, ownership of the incomplete units 2 and 3 eventually was transferred entirely to Santee Cooper, and with attention in nuclear resurging as a means of stable, emissions-free baseload energy, the company is seeking interest from buyers. "We are seeing renewed interest in nuclear energy, fueled by advanced manufacturing investments, AI [artificial intelligence]-driven data center demand, and the tech industry's zero-carbon targets," Jimmy Staton, Santee Cooper's chief executive, said in a statement.
Staton also noted how the reactors' partial completion would shorten the construction timeline for a new nuclear plant. "Considering the long timelines required to bring new nuclear units online, Santee Cooper has a unique opportunity to explore options for Summer units 2 and 3 and their related assets that could allow someone to generate reliable, carbon emissions-free electricity on a meaningfully shortened timeline," he said.
Santee Cooper has obtained the services of Centerview Partners LLC (New York, New York) to oversee the request for proposal for the two units. Parties will have until May 5 to show their interest. According to the Wall Street Journal, the winning bidder "will likely look to tap a consortium that could include a construction firm, a tech company that will use the power and an additional partner for capital, according to people familiar with the matter." Another power company also will be involved, as Santee Cooper wants no part in owning or operating the units once they are up and running.
As Staton stated, tech companies seeking clean power for AI-enabled data centers will almost certainly play a large part in any transaction that occurs for the reactors. Within the past year, Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) and Constellation Energy Corporation (NYSE:CEG) (Baltimore, Maryland) have discussed restarting the shuttered reactor at the Three Mile Island nuclear plant in Pennsylvania. For more information, see September 24, 2024, article - Constellation, Microsoft Want to Restart Three Mile Island to Power Data Centers. Additionally, Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington) and Google parent company Alphabet Incorporated (NASDAQ:GOOGL) (Mountain View, California) have expressed in using nuclear energy to provide power to the newest data centers.
The two reactors at the V.C. Summer plant are each designed to have 1,100 megawatts (MW) of generating capacity, so potentially 2,200 MW of clean energy could be added to the grid. Plans for the reactors will probably become more apparent as early May approaches and potential buyers have had time to form partnerships and submit offers. Santee Cooper hopes to recoup some of the money it spent during the initial construction, and continued construction would lead to a multibillion-dollar expenditure for whomever purchases the reactors.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can click here for the plant profile.
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) 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).
To avoid similar results, the owners of the two reactors under construction in South Carolina cancelled their project less than 40% into construction. The owners, South Carolina power provider Santee Cooper (Moncks Corner, South Carolina) and South Carolina Electric & Gas (now part of Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia)), exited the project having jointly spent about $9 billion, when the entire project from start to completion had been originally estimated at less than $10 billion.
Another death knell for the reactors sounded in 2017 when designer and builder Westinghouse Electric (Cranberry Township, Pennsylvania) filed for Chapter 11 bankruptcy.
While Dominion continues to operate the Unit 1 reactor at the plant, which was built in 1982, ownership of the incomplete units 2 and 3 eventually was transferred entirely to Santee Cooper, and with attention in nuclear resurging as a means of stable, emissions-free baseload energy, the company is seeking interest from buyers. "We are seeing renewed interest in nuclear energy, fueled by advanced manufacturing investments, AI [artificial intelligence]-driven data center demand, and the tech industry's zero-carbon targets," Jimmy Staton, Santee Cooper's chief executive, said in a statement.
Staton also noted how the reactors' partial completion would shorten the construction timeline for a new nuclear plant. "Considering the long timelines required to bring new nuclear units online, Santee Cooper has a unique opportunity to explore options for Summer units 2 and 3 and their related assets that could allow someone to generate reliable, carbon emissions-free electricity on a meaningfully shortened timeline," he said.
Santee Cooper has obtained the services of Centerview Partners LLC (New York, New York) to oversee the request for proposal for the two units. Parties will have until May 5 to show their interest. According to the Wall Street Journal, the winning bidder "will likely look to tap a consortium that could include a construction firm, a tech company that will use the power and an additional partner for capital, according to people familiar with the matter." Another power company also will be involved, as Santee Cooper wants no part in owning or operating the units once they are up and running.
As Staton stated, tech companies seeking clean power for AI-enabled data centers will almost certainly play a large part in any transaction that occurs for the reactors. Within the past year, Microsoft Corporation (NASDAQ:MSFT) (Redmond, Washington) and Constellation Energy Corporation (NYSE:CEG) (Baltimore, Maryland) have discussed restarting the shuttered reactor at the Three Mile Island nuclear plant in Pennsylvania. For more information, see September 24, 2024, article - Constellation, Microsoft Want to Restart Three Mile Island to Power Data Centers. Additionally, Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington) and Google parent company Alphabet Incorporated (NASDAQ:GOOGL) (Mountain View, California) have expressed in using nuclear energy to provide power to the newest data centers.
The two reactors at the V.C. Summer plant are each designed to have 1,100 megawatts (MW) of generating capacity, so potentially 2,200 MW of clean energy could be added to the grid. Plans for the reactors will probably become more apparent as early May approaches and potential buyers have had time to form partnerships and submit offers. Santee Cooper hopes to recoup some of the money it spent during the initial construction, and continued construction would lead to a multibillion-dollar expenditure for whomever purchases the reactors.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can click here for the plant profile.
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) 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).
