Bill Gates’ TerraPower gets approval to build new nuclear reactor

The Nuclear Regulatory Commission (NRC) has granted TerraPower the green light to construct a new nuclear reactor near an aging coal power facility in Wyoming. This significant permit marks the NRC's first approval in nearly ten years, highlighting a pivotal moment for the company founded by Bill Gates in 2015 and supported by Nvidia. TerraPower's Natrium reactor, developed in collaboration with GE Vernova Hitachi, is designed to produce 345 megawatts of energy. Although this output is about two-thirds less than that of contemporary large reactors, it is significantly larger than many of the small modular reactor designs that other startups are pursuing. What sets Natrium apart is not just its size but also its innovative cooling system. Unlike traditional reactors that utilize water for cooling, Natrium employs molten sodium, a method that TerraPower claims enhances safety. This approval is particularly noteworthy as it represents the first NRC endorsement of a commercial reactor using a non-water cooling system in over four decades. The reactor will maintain an excess of molten sodium in insulated tanks, enabling it to continue nuclear fission even during periods of low energy demand. This stored heat can then be utilized to support energy needs when renewable sources like wind and solar falter. By operating nuclear facilities closer to their maximum capacity, TerraPower aims to reduce overall energy production costs. The NRC’s decision is a milestone, as TerraPower adhered to the established permitting procedure, allowing construction on privately owned land. Recent changes by the Department of Energy have relaxed certain safety regulations, but these changes apply only to property owned by the agency. As electricity demands from data centers rise, there is increasing pressure on the government to expand generating capabilities, including the development of new nuclear reactors. Investors have recognized these trends, pouring over $1 billion into nuclear startups in recent months, with TerraPower having raised a substantial $1.7 billion overall, including a notable $650 million in funding that closed this past June. However, the nuclear sector still faces significant challenges. Currently, it is one of the most costly options for new power generation, a situation exacerbated by budget overruns on large plants and the rapid decline in costs for solar, wind, and battery technologies. While nuclear innovators are banking on mass production to lower expenses, the effectiveness of this strategy remains to be demonstrated, with actual savings typically taking a decade to manifest.