Energy department hands out $800M in grants for small nuclear reactors

The U.S. Department of Energy has announced significant funding for the development of small modular nuclear reactors, awarding two companies substantial grants. Both the Tennessee Valley Authority (TVA) and Holtec will receive $400 million each to support their initiatives in this innovative energy sector. The TVA plans to construct a 300-megawatt reactor using technology from GE Vernova Hitachi in Tennessee. Meanwhile, Holtec is set to develop two reactors of the same capacity in Michigan. This investment comes at a time when tech companies are increasingly looking to nuclear energy to meet their growing electricity needs, particularly as they expand their artificial intelligence operations. The reactors being funded are classified as Generation III+ designs, which are enhanced versions of long-established nuclear technologies. By scaling down these reactors to a modular size, there is optimism that costs will be reduced through mass production techniques and a more experienced workforce in their engineering and construction. Currently, only two small modular reactors have been successfully commissioned, as reported by the World Nuclear Association. The federal support reflects a broader commitment to exploring advanced nuclear technologies as part of the country’s energy strategy.