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Researched by Industrial Info Resources (Sugar Land, Texas)--One of the world's largest renewable energy developers is turning a page in its playbook as it seeks to expand natural gas-fired generation in the U.S. and potentially restart a shuttered nuclear power plant in Iowa. In a recent conference call, NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) Chief Executive Officer John Ketchum discussed the company's strategies moving forward as it holds its ground under a new U.S. presidential administration that is not as friendly toward renewables as was the administration under Joe Biden.
Ketchum explained that NextEra is partnering with gas turbine-maker GE Vernova (NYSE:GEV) (Cambridge, Massachusetts) to develop "multiple gigawatts" of natural gas-fired generation throughout the U.S. Ketchum specifically mentioned artificial intelligence (AI)-enabled data centers as requiring large amounts of baseload power that gas-fired generation would help provide.
While former President Biden promoted the use of renewable energy, the Trump administration is much more geared toward fossil-fueled power. "Given the current power demand environment, it is more important than ever to unleash all forms of electric generation," said Ketchum.
NextEra's planned construction of these gas-fired plants could last until 2030 as the company must find land in suitable areas, source and arrange for supply of natural gas, and wait for turbines to be delivered. But Ketchum said he doesn't doubt that NextEra and GE Vernova can achieve substantial changes in the U.S. power landscape. "Nobody has built more gas-fired generation over the last decade than NextEra Energy, and nobody has sold more gas turbines than GE Vernova," he said. "This collaboration brings together the nation's leading operator of natural gas-fired generation and the world leader in natural gas and electrification technology."
Ketchum also announced NextEra was taking the initial steps in the potential restart of the Duane Arnold nuclear power plant in Iowa, a 615-megawatt single-reactor facility that was shuttered in 2020 after its cooling tower was extensively damaged by a derecho, a windstorm associated with severe thunderstorms that can bring hurricane-force gales. NextEra had planned to retire the plant later that year, but the damage sustained from the windstorm prompted the company to retire the plant months earlier than planned. Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can click here for the plant profile.
For the past few years, smaller nuclear plants have been closed as they have been unable to compete economically with other sources of power. However, as the advantages of emissions-free baseload generation become more apparent and desirable, some companies are looking to restart previously closed reactors, often obtaining federal and state funding to do so. A renewed interest in nuclear power began under the Biden administration, and President Trump has expressed his support for this form of energy, suggesting the U.S. government will be supportive of nuclear development for years to come.
Along with the Duane Arnold plant, Ketchum mentioned two other nuclear plants that have the best chances of restarting in the next few years: the 800-MW Palisades plant in Michigan and the Unit 1 reactor at the former Three Mile Island power station in Pennsylvania. "Those are really the ones that I think I would confine to the timeframe of being over the next three, four, five years," Ketchum said. Subscribers can learn more by viewing the project reports on the Michigan and Pennsylvania restarts.
Ketchum places the timeline for the implementation of the latest nuclear technology, small modular reactors (SMRs) somewhat later than these potential restarts, suggesting that they could begin to gain traction "in the middle of the latter part of the next decade." This timeline for SMRs curtails NextEra's immediate nuclear ambitions somewhat, with the company "unlikely to add multiple gigawatts of new nuclear to the grid over the next decade," according to Ketchum.
Last week, a South Carolina utility set in motion the process of possibly restarting construction of two nuclear units at the V.C. Summer nuclear plant in South Carolina. Construction of the units ceased in 2017, when the owners of the plant neared their entire estimated construction budget when the reactors were less than 40% complete. Now the two 1,100-MW reactors could add the most nuclear power to the U.S. generation portfolio since the completion of units 3 and 4 at the Vogtle generation plant in Georgia last year. For more information, see January 24, 2025, article - Santee Cooper Seeks Buyers for Incomplete South Carolina Reactors.
NextEra's future forays into natural gas and nuclear power come as the company foresees a tremendous increase in U.S. power use in the coming years, expecting demand could surge 80% over the next five years and sixfold compared to the past 20 years. "The only close analogy you could draw is to the last industrial revolution," Ketchum said.
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).
Ketchum explained that NextEra is partnering with gas turbine-maker GE Vernova (NYSE:GEV) (Cambridge, Massachusetts) to develop "multiple gigawatts" of natural gas-fired generation throughout the U.S. Ketchum specifically mentioned artificial intelligence (AI)-enabled data centers as requiring large amounts of baseload power that gas-fired generation would help provide.
While former President Biden promoted the use of renewable energy, the Trump administration is much more geared toward fossil-fueled power. "Given the current power demand environment, it is more important than ever to unleash all forms of electric generation," said Ketchum.
NextEra's planned construction of these gas-fired plants could last until 2030 as the company must find land in suitable areas, source and arrange for supply of natural gas, and wait for turbines to be delivered. But Ketchum said he doesn't doubt that NextEra and GE Vernova can achieve substantial changes in the U.S. power landscape. "Nobody has built more gas-fired generation over the last decade than NextEra Energy, and nobody has sold more gas turbines than GE Vernova," he said. "This collaboration brings together the nation's leading operator of natural gas-fired generation and the world leader in natural gas and electrification technology."
Ketchum also announced NextEra was taking the initial steps in the potential restart of the Duane Arnold nuclear power plant in Iowa, a 615-megawatt single-reactor facility that was shuttered in 2020 after its cooling tower was extensively damaged by a derecho, a windstorm associated with severe thunderstorms that can bring hurricane-force gales. NextEra had planned to retire the plant later that year, but the damage sustained from the windstorm prompted the company to retire the plant months earlier than planned. Subscribers to Industrial Info's Global Market Intelligence (GMI) Plant Database can click here for the plant profile.
For the past few years, smaller nuclear plants have been closed as they have been unable to compete economically with other sources of power. However, as the advantages of emissions-free baseload generation become more apparent and desirable, some companies are looking to restart previously closed reactors, often obtaining federal and state funding to do so. A renewed interest in nuclear power began under the Biden administration, and President Trump has expressed his support for this form of energy, suggesting the U.S. government will be supportive of nuclear development for years to come.
Along with the Duane Arnold plant, Ketchum mentioned two other nuclear plants that have the best chances of restarting in the next few years: the 800-MW Palisades plant in Michigan and the Unit 1 reactor at the former Three Mile Island power station in Pennsylvania. "Those are really the ones that I think I would confine to the timeframe of being over the next three, four, five years," Ketchum said. Subscribers can learn more by viewing the project reports on the Michigan and Pennsylvania restarts.
Ketchum places the timeline for the implementation of the latest nuclear technology, small modular reactors (SMRs) somewhat later than these potential restarts, suggesting that they could begin to gain traction "in the middle of the latter part of the next decade." This timeline for SMRs curtails NextEra's immediate nuclear ambitions somewhat, with the company "unlikely to add multiple gigawatts of new nuclear to the grid over the next decade," according to Ketchum.
Last week, a South Carolina utility set in motion the process of possibly restarting construction of two nuclear units at the V.C. Summer nuclear plant in South Carolina. Construction of the units ceased in 2017, when the owners of the plant neared their entire estimated construction budget when the reactors were less than 40% complete. Now the two 1,100-MW reactors could add the most nuclear power to the U.S. generation portfolio since the completion of units 3 and 4 at the Vogtle generation plant in Georgia last year. For more information, see January 24, 2025, article - Santee Cooper Seeks Buyers for Incomplete South Carolina Reactors.
NextEra's future forays into natural gas and nuclear power come as the company foresees a tremendous increase in U.S. power use in the coming years, expecting demand could surge 80% over the next five years and sixfold compared to the past 20 years. "The only close analogy you could draw is to the last industrial revolution," Ketchum said.
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).
