This comes following reports that the federal government intends to offer a $1.5 billion loan to Holtec International to restart the plant. Palisades would be the first successfully restarted nuclear plant in the U.S. if the plan is fulfilled.

The proposed budget includes a one-time general fund for a $150 million targeted investment to support efforts to reopen the 800 MW plant in Covert Township, Michigan, following the initial $150 million approved for the 2023 budget. Holtec International bought the plant in 2022 and has applied for federal dollars to help get the plant running again.

In early 2023, Holtec applied with the U.S. Department of Energy’s Loan Programs Office for federal loan funding to repower Palisades, and the Biden Administration has expressed support for extending the lives or even restarting large nuclear plants. These facilities have been retiring over the last decade because of competition from cheaper natural gas and renewables.

There is currently a $6 billion fund aimed at supporting the continued operation of U.S. nuclear plants or the reviving of already closed ones. The Civil Nuclear Credit (CNC) Program was born out of the infrastructure bill signed into law in November 2021.

Any restart of Palisades is contingent on federal dollars coming through. Holtec officials have been quoted as saying it would take hundreds of millions of dollars for facility renovations and to buy nuclear fuel.

Holtec will officially be offered the federal loan as soon as next month, sources told Bloomberg.

In September 2023, Holtec and Wolverine Power Cooperative announced the signing of a long-term power purchase agreement, where Wolverine would purchase up to two-thirds of the power generated by Palisades for its Michigan-based member rural electric cooperatives. Indiana-based Hoosier Energy, another G&T Cooperative, would purchase the rest.

In early 2023, Holtec applied with the U.S. Department of Energy’s Loan Programs Office for federal loan funding to repower Palisades, an 800 MW plant in Covert Township, Michigan. Holtec had acquired the plant in June 2022 just after it was shutdown.

The Biden Administration has expressed support for extending the lives or even restarting large nuclear plants. These facilities have been retiring over the last decade because of competition from cheaper natural gas and renewables.

There is currently a $6 billion fund aimed at supporting the continued operation of U.S. nuclear plants or the reviving of already closed ones. The Civil Nuclear Credit (CNC) Program was born out of the infrastructure bill signed into law in November 2021.

Any restart of Palisades is contingent on federal dollars coming through. Holtec officials have been quoted as saying it would take hundreds of millions of dollars for facility renovations and to buy nuclear fuel.

Holtec will officially be offered the loan as soon as next month, sources told Bloomberg.

A spokesperson with Holtec would not confirm or deny Bloomberg’s reporting.

“We hope for a timely approval of our loan application to bring the plant back to full power operation toward the end of 2025,” the spokesperson said. “We will not speculate on anticipated timing but are hopeful to hear a favorable decision in the near future.”

In May 2023 a bipartisan group of Michigan lawmakers that make up a newly-formed nuclear energy caucus wrote a letter to Gov. Gretchen Whitmer expressing “full support” for the re-opening of Palisades.

Whitmer herself has supported reopening Palisades, a carbon-free baseload generating source as more solar and wind power infrastructure is built out.

Michigan also included $150 million to restart the plant in its latest budget passed in June 2023.

In September 2023, Holtec and Wolverine Power Cooperative announced the signing of a long-term power purchase agreement, where Wolverine would purchase up to two-thirds of the power generated by Palisades for its Michigan-based member rural electric cooperatives. Indiana-based Hoosier Energy, another G&T Cooperative, would purchase the rest.

In a new report, the Institute describes SMRs as vital for achieving net zero by 2050 but while the concept has been gaining traction across the world for quite a while, overall progress in the sector over the last 10 to 15 years has been modest.

Moreover the emerging sector faces a complex interplay of technological, economic, and geopolitical factors that influence and to some extent constrain the technology adoption and scalability.

Market prospects

An estimated 70 SMR designs are believed to be in development currently, with potential market segments including both on-grid and off-grid power supply, advanced co-generation, and transport applications.

While optimistic forecasts have suggested that the global SMR fleet could reach around 350GWe by 2050, the Institute’s base case scenario estimates it “more realistically” in the region of 150-170GWe.

Nuclear’s Evolution is an educational track at the POWERGEN International® exhibition and summit, which serves as an education, business and networking hub for electricity generators, utilities, and solution providers engaged in power generation. Join us from January 23-25, 2024, in New Orleans, Louisiana!

The Institute anticipates that few SMRs will start operating before 2030 and for the first wave of deployments to occur around 2030-2035, predominantly featuring light water generation III+ designs.

Those projects are likely to face delays averaging 1-3 years, along with significant cost overruns compared to initial schedules and estimates.

Advanced (generation IV) SMRs, despite ambitious targets, are likely to encounter more substantial delays due to more complex licensing, supply chain, and fuel supply issues.

While some demonstration units may still come online by 2030-2035, full-scale first-of-a-kind deployment and subsequent series factory manufacturing are more likely to materialize closer to 2040.

The Institute also states that if current trends persist, in the context of regulatory and geopolitical fragmentation, Russian and Chinese designs are poised to dominate with nearly 40% of the global SMR fleet by capacity.

For example, Russia’s Rosatom, with pre-selected designs including the Gen III+ RITM-200 and Shelf-M and Gen IV SBVR-100, is set to replicate its success in large reactor exports. Supported by government subsidies and export finance, and offering a ‘plant-as-a-service’ model, Rosatom is expected to surpass 7GWe of operational SMR capacity by 2040.

China, set to launch the world’s first onshore SMR unit with Linglong One (ACP100), will see this design, along with Hualong One (HPR1000), as a flagship export. Backed by state support, China’s SMR designs are expected to comprise 6.5GWe by 2040, scaling up to over 30GW by 2050, with export priorities along the Belt and Road Initiative (BRI).

Support for SMR programs

The report suggests that to compete with Russia and China, OECD countries should consider equivalent support for their SMR programs.

Recommendations are:
● Supply-side support should be complemented with strong demand-side incentives, targeting priority applications like coal-fired power station replacement and diesel generation replacement for larger off-grid customers.

● All remaining restrictions should be removed on SMR-based clean energy solutions by international development institutions along with export finance options being streamlined and international trade advocacy services offered.

● Nuclear regulators should be encouraged to collaborate in developing at least partial common standards, with mutual recognition of pre-licensing design and factory certification for SMRs, as well as to share knowledge, information, and expert networks, particularly regarding innovative technologies.

● Firms should be encouraged to form competitive global alliances combining vendors, potential international plant operators, and key supply chain partners capable of competing with Russian and Chinese national champions in the ‘plant-as-a-service’ lifecycle energy solutions segment.

“The world needs an initiative of the magnitude of the Marshall Plan to help the most carbon-intensive regions replace their aging coal-fired plants with SMRs,” says NNWI Chairman Tim Yeo.

“Policy support for SMR technologies must be ramped up and carefully targeted to ensure we meet our mid-century net zero goals and facilitate timely completion of the clean energy transition.”

Top SMR projects

The report also identifies the 25 top projects that, due to a combination of business and technological performance drivers, are most likely to be deployed and secure a significant market share by mid-century.

In light of intense internal and external competition and the limited size of the market, first-mover advantage will be critical, with rapid series deployment driving success in the SMR market, the report emphasizes.

Late entrants, even those with more advanced technology, are likely to find it harder to scale up.

First movers with demonstration plants expected to become operational around 2030, in addition to the Russian RITM-200 and China’s Linglong One, are NuScale’s VOYGR and GE-Hitachi’s BWRX-300 boiling water reactor.

Other designs with deployment prospects closer to 2035 include the Rolls-Royce SMR in the UK, EDF’s NUWARD project in France, the SMART SMR from KAERI and BANDI-60 from KEPCO in South Korea, and Holtec’s SMR-300 and Westinghouse’s AP300 in the US.

Originally published by Jonathan Spencer Jones in Power Engineering International.

Holtec purchased the shuttered Palisades plant in 2022 and wants to restart it. Twin SMR-300 reactors would each add 300 MW of power at the site in Covert Township, Michigan. The existing Palisades plant went into operation in 1971 and generated 800 MW before it was retired.

Holtec’s SMR is a pressurized water reactor producing around 300 MW of electrical power or 1050 MW of thermal power for process applications. Holtec said it has undergone several design evolutions since 2011, including the incorporation of forced flow capability overlayed on gravity-driven flow in the plant’s primary system.

Nuclear’s Evolution is an educational track at the POWERGEN International® exhibition and summit, which serves as an education, business and networking hub for electricity generators, utilities, and solution providers engaged in power generation. Join us from January 23-25, 2024, in New Orleans, Louisiana!

Holtec said the existing large-reactor plant is refurbished with an array of enhancements, and the company is targeting a return-to-service date for the end of 2025.

The plant’s restart has received bipartisan support, including from Michigan Gov. Gretchen Whitmer. The state also included $150 million to restart the plant in its latest budget.

Holtec has asked the NRC to reinstate its operating license for the plant and to re-hire staff.

But the effort needs federal funding, expected to be the primary investment in the plan’s restart. Holtec hopes to tap a $6 billion fund at the Department of Energy earmarked to preserve the U.S. nuclear reactor fleet and associated jobs.

Federal energy officials are still reviewing the company’s $1 billion grant application. Holtec officials have been quoted as saying it would take hundreds of millions of dollars for facility renovations and to buy nuclear fuel.

In September, Holtec and Wolverine Power Cooperative announced the signing of a long-term power purchase agreement involving the plant. Wolverine would purchase up to two-thirds of the power generated by Palisades for its Michigan-based member rural electric cooperatives. Indiana-based Hoosier Energy, another G&T Cooperative, would purchase the rest.

The filing of the Construction Permit Application for the two SMRs is targeted for 2026, shortly after the existing Palisades plant would return to service.

The company participated in a public meeting Nov. 1 with U.S. Nuclear Regulatory Commission (NRC) staff to discuss the matter. Holtec is hoping to obtain a Limited Work Authorization and Construction Permit application from NRC.

Holtec’s SMR-160 is a pressurized light-water reactor, generating 160 MWe/525 MWt using low-enriched uranium fuel, which could also produce process heat for industrial applications and hydrogen production.

It’s unclear how many SMR units Holtec plans to pursue at the Palisades site.

“Our company will continue to engage the agency as we work through pre-application activities,” a statement sent by Holtec reads in part. “The company has previously observed that former power plant sites – both nuclear and non-nuclear – may be ideal candidates for citing SMR, such as at Palisades.”

Holtec is targeting the end of the decade for SMR deployment.

The company acquired Palisades nuclear plant in June 2022 just after it was shut down. Holtec wants to restart the plant, but this is contingent on federal dollars to get the plant up and running again. In early 2023, Holtec applied with the U.S. Department of Energy’s Loan Programs Office for federal loan funding to repower Palisades.

Federal energy officials are reviewing the $1 billion grant application, expected to be the primary investment in the nuclear plant restart.

In September Holtec and Wolverine Power Cooperative announced the signing of a long-term power purchase agreement that would allow the restart of the 800 MW plant.

The U.S. Department of Energy (DOE) on Oct. 13 named seven regional clean hydrogen hubs to receive $7 billion in federal funding, a long-awaited announcement for an initiative aimed at accelerating the commercial-scale deployment of clean hydrogen and driving down its cost.

Funded by Infrastructure Investment and Jobs Act (IIJA), the seven H2Hubs are located around the U.S. and aim to jumpstart a national network of clean hydrogen producers, consumers and connective infrastructure. Each hub will include clean hydrogen production, storage, delivery and end-use components.

Clean Hydrogen is expected to play a particularly important role in cleaning up hard-to-decarbonize sectors like refining, chemicals and heavy-duty transport.

Another major driver for clean hydrogen: Signed into law last year, the Inflation Reduction Act (IRA) includes a suite of tax incentives for project developers and is aimed at jumpstarting the industry. But the U.S. Treasury Department will need to determine how to account for the emissions from electricity used to make electrolytic hydrogen. Read our full primer with different viewpoints from the industry here.

The H2Hubs are expected to collectively produce three million metric tons of hydrogen annually, reaching nearly a third of the 2030 U.S. production target and lowering emissions from these industrial sectors that represent 30 percent of total U.S. carbon emissions.

In the power sector, hydrogen can be combusted in gas turbines for decarbonization or be used as a form of long-duration energy storage.

According to DOE’s previously-released Liftoff reports, clean hydrogen production has the potential to scale from nearly zero today to close to 10 million metric tons per year (MMTpa) in 2030 across the power, industrial and transportation sectors. That number could jump to 50 MMTpa by 2050.

Plug Power CEO John Marsh recently joined the Factor This! podcast and said he believes the U.S. could become a green hydrogen superpower. He specifically addressed the Regional Clean Hydrogen Hubs program.

Here are the selected projects

Appalachian Hydrogen Hub (Or Appalachian Regional Clean Hydrogen Hub – ARCH2): The Appalachian Hydrogen Hub includes West Virginia, Ohio , Kentucky and Pennsylvania and will leverage the region’s access to natural gas to produce low-cost clean hydrogen and store the associated carbon emissions (A process known as “Blue Hydrogen”).

The ARCH2 hub includes a diverse group of partner companies, including Battelle, Air Liquide, The Chemours Company, CNX Resources Corp, Dominion Energy Ohio, Empire Diversified Energy, EQT Corporation, Fidelis New Energy, First Mode, Hog Lick Aggregates, Hope Gas Inc., Independence Hydrogen Inc., KeyState Energy, MPLX, Plug Power and TC Energy.

The hub is expected to bring job opportunities to workers in coal communities.

“I am so honored to announce that today the U.S. Department of Energy has selected the Appalachian Regional Clean Hydrogen Hub for up to $925 million in federal support under the Bipartisan Infrastructure Law,” said

Sen. Joe Manchin (D – W.V.) said the award “means West Virginia and the Appalachian region will be the new epicenter of hydrogen in the United States of America.”

Amount: up to $925 million

California Hydrogen Hub (Or Alliance for Renewable Clean Hydrogen Energy Systems – ARCHES): The California Hydrogen Hub will produce hydrogen exclusively from renewable energy and biomass.

Through the application process, ARCHES identified several projects up and down the state—many shovel-ready—supporting three essential hard-to-decarbonize end-use sectors: heavy-duty vehicles, power plants and ports.

ARCHES is supported by over 400 organizations and individuals representing state and local governments, higher education institutions, business and industry leaders, organized labor and community advocates.

“Today we are moving from concept to reality – advancing clean, renewable hydrogen in California which is essential to meeting our climate goals,” said Gov. Gavin Newsom (D).

Amount: up to $1.2 billion

Gulf Coast Hydrogen Hub (HyVelocity H2Hub): The Gulf Coast Hydrogen Hub will be centered in the Houston, Texas region. Large-scale hydrogen production is planned using both natural gas with carbon capture and renewables-powered electrolysis.

The Gulf Coast is well-situated for a clean hydrogen hub as it contains the world’s largest concentration of existing hydrogen production assets, customers, and energy infrastructure. This includes a network of 48 hydrogen production plants and over 1,000 miles of hydrogen pipelines.

HyVelocity includes seven core industry participants: AES Corporation, Air Liquide, Chevron, ExxonMobil, Mitsubishi Power Americas, Orsted, and Sempra Infrastructure. HyVelocity is administered by GTI Energy and includes organizing participants like The University of Texas at Austin, the Center for Houston’s Future and Houston Advanced Research Center.

“This investment represents a pivotal step in decarbonizing our planet and revolutionizing mobility, serving as a powerful example of successful public-private partnerships in scaling up hydrogen and advancing the energy transition,” said Katie Ellet, President of Hydrogen Energy & Mobility of North America for Air Liquide.

Amount: up to $1.2 billion

Heartland Hydrogen Hub: The Heartland Hydrogen Hub includes Minnesota, North Dakota, South Dakota and aims to help decarbonize the agricultural sector’s production of fertilizer, decrease the regional cost of clean hydrogen, and advance the use of clean hydrogen in electric power generation and for cold climate space heating.

The hub includes Xcel Energy, Marathon Petroleum Corporation and TC Energy, in collaboration with the University of North Dakota’s Energy & Environmental Resource Center.

Xcel Energy expects to receive a large portion of the federal award for projects within the hub.

The utility plans to use existing and future nuclear, solar and wind resources in the Upper Midwest to produce hydrogen to blend into power generation, existing natural gas distribution systems and other agricultural and industrial applications.

Amount: up to $925 million

Mid-Atlantic Hydrogen Hub (Mid-Atlantic Clean Hydrogen Hub – MACH): The Mid-Atlantic Hydrogen Hub includes Pennsylvania, Delaware and New Jersey. It anticipates developing hydrogen production facilities from renewable and nuclear electricity using both established and innovative electrolyzer technologies.

Anchor partners include Air Liquide, Bloom Energy, Braskem, Chesapeake Utilities, The City of Philadelphia, DRS, DuPont, Enbridge, Holtec, PGW, PSEG and SEPTA.

Amount: up to $750 million

Midwest Hydrogen Hub (Midwest Alliance for Clean Hydrogen – MachH2): The hub includes Illinois, Indiana, Michigan. Hydrogen uses include steel and glass production, power generation, refining, heavy-duty transportation and sustainable aviation fuel.

Hydrogen will be produced with renewables, natural gas and nuclear energy.

A sampling of members in MachH2 include ADL Ventures, Air Liquide, Argonne National Laboratory, Big Rivers Electric, Bloom Energy, ComEd, Constellation, GTI Energy, Holtec, Hydrogen Technologies Inc., Invenergy, NiSource, Plug Power, Rockwell Automation and several large Midwest universities.

“Our hub and the region bring an unparalleled supply of clean energy, significant regional hydrogen demand, heavy industry, and an ideal location at the crossroads of America – all of which was recognized by the DOE’s selection of MachH2,” said Dr. Dorothy Davidson, CEO of MachH2.

Amount: up to $1 billion

Pacific Northwest Hydrogen Hub (PNW H2): The Pacific Northwest Hydrogen Hub includes Washington, Oregon, Montana and plans to produce clean hydrogen exclusively via electrolysis.

Association partners include the Consortium for Hydrogen and Renewably Generated E-Fuels (CHARGE) Network, Renewable Hydrogen Alliance (RHA), Washington Green Hydrogen Alliance, Washington State University, Pacific Northwest National Laboratory, and many private corporations, utilities, and ports.

The hub believes its widescale use of electrolyzers will drive down the costs for this equipment.

Amount: up to $1 billion

DOE’s $7 billion investment in the hubs will be met by awardees’ combined cost share of more than $40 billion.

Before funding is issued, the Department and the applicants will undergo a negotiation process. DOE notes it could cancel negotiations and rescind the selection for any reason during that time.  

Learn more about the seven H2Hubs selected here.

Wolverine would purchase up to two-thirds of the power generated by Palisades for its Michigan-based member rural electric cooperatives. Indiana-based Hoosier Energy, another G&T Cooperative, would purchase the rest.

Palisades is now closer to becoming the first successfully restarted nuclear power plant in the U.S. Holtec acquired the plant in June 2022 just after it was shutdown.

“We are thrilled to enter into this partnership,” said Kelly Trice, President of Holtec Nuclear Generation and Decommissioning. “With key support from federal partners, Governor Whitmer, the Michigan legislature, and the local plant community, this will soon be a reality.”

But any restart is contingent on federal dollars to get the plant up and running again. In early 2023, Holtec applied with the U.S. Department of Energy’s Loan Programs Office for federal loan funding to repower Palisades.

Federal energy officials are reviewing the $1 billion grant application, expected to be the primary investment in the nuclear plant restart. Holtec officials have been quoted as saying it would take hundreds of millions of dollars for facility renovations and to buy nuclear fuel.

Holtec also said it has participated in several public meetings with the U.S. Nuclear Regulatory Commission staff to discuss finding an NRC-licensed operator for the plant.

In May a bipartisan group of Michigan lawmakers that make up a newly-formed nuclear energy caucus wrote a letter to Gov. Gretchen Whitmer expressing “full support” for the re-opening of Palisades.

Whitmer herself has supported reopening Palisades, a carbon-free baseload generating source as more solar and wind power infrastructure is built out.

Michigan also included $150 million to restart the plant in its latest budget passed in June.

Some activists who long criticized Palisades as poorly maintained and dangerous don’t want it resurrected.

Earlier this year 43 organizations representing Indigenous, climate, environmental, Great Lakes and water protection, social and racial justice and other interests recently wrote a letter to all Michigan state legislators, urging them to reject state funding aimed at reopening the plant.

Palisades began commercial operation in 1971.

Holtec International bought the plant in 2022 and has applied for federal dollars to help get the plant running again. It hopes to tap a $6 billion fund at the Department of Energy earmarked to preserve the U.S. nuclear reactor fleet and associated jobs.

Federal energy officials are reviewing the $1 billion grant application, expected to be the primary investment in the nuclear plant restart. Holtec officials have been quoted as saying it would take hundreds of millions of dollars for facility renovations and to buy nuclear fuel.

In May a bipartisan group of Michigan lawmakers that make up a newly-formed nuclear energy caucus wrote a letter to Gov. Gretchen Whitmer expressing “full support” for the re-opening of Palisades nuclear plant.

Whitmer herself has supported reopening Palisades, a carbon-free baseload generating source as more solar and wind power infrastructure is built out.

But activists who long criticized Palisades as poorly maintained and dangerous don’t want it resurrected.

43 organizations representing Indigenous, climate, environmental, Great Lakes and water protection, social and racial justice and other interests recently wrote a letter to all Michigan state legislators, urging them to reject state funding aimed at reopening the plant.

“We have the chance to make history by successfully repowering a non-operational nuclear power plant, becoming the first state in American history to accomplish such a feat,” state lawmakers wrote. “The successful re-powering of Palisades would immediately provide safe, carbon-free, and reliable energy to a grid that desperately needs more baseload generation.”

The 800 MW Palisades nuclear power plant is currently being decommissioned. Holtec International bought the plant in 2022 and shuttered it with an eye toward decommissioning the facility under an agreement with the Nuclear Regulatory Commission.

However, Holtec more recently applied for federal dollars to help get the plant running again. It hopes to tap a $6 billion fund at the Department of Energy earmarked to preserve the U.S. nuclear reactor fleet and associated jobs.

We previously reported that Michigan could chip in as much $300 million to help restart Palisades. Holtec officials were quoted as saying it would take hundreds of millions of dollars for facility renovations and to buy nuclear fuel.

Palisades, located in Covert, Michigan, began commercial operation in 1971.

GE Hitachi (GEH) has hopes for its BWRX-300, the 10th evolution of GE’s boiling water reactor design. The 300 MW water-cooled reactor design is based on the company’s Economic Simplified Boiling-Water Reactor (ESBWR), which is already licensed by the U.S. Nuclear Regulatory Commission.

GEH Executive Vice President of Advanced Nuclear Sean Sexstone refers to the BWRX-300 as a “simply made reactor” because it uses the same equipment and fuel that are already in GE reactors around the world.

“Ninety-five percent of it has been done,” said Sexstone in an exclusive interview with Power Engineering. “Maybe these are a little smaller in scale, but very proven.”

This is one reason why GE Hitachi believes the BWRX-300 can become the cheapest, quickest and lowest-risk SMR to market.

Sexstone said the company took the basic ESBWR design and simplified it, including several design safety features which are new to boiling water reactor technology.

The safety relief valves, deemed the most likely cause of a loss of coolant accident (LOCA), were eliminated in the design. The isolation condenser system (ICS) provides overpressure protection in accordance with ASME BPV code, section III, class 1 equipment (Status Report – BWRX-300 – GE Hitachi and Hitachi GE Nuclear Energy). In order to accommodate this change, the design pressure has been raised by 20% from previous boiling water reactors. GE Hitachi has also implemented integral isolation valves, which close to stop the loss of coolant in an accident scenario.

In general, because of their relatively small physical footprints, reduced capital investment and more flexible siting, SMRs are viewed as an antidote to the cost overruns that have plagued large-scale nuclear projects.

Sexstone said GE Hitachi has been able to eliminate roughly 90% of the concrete and steel from the ESBWR, leaving a total power plant footprint smaller than a football field. The company projects the BWRX-300 to have up to a 60% lower capital cost per megawatt compared with the typical water-cooled SMR.

But despite policy support and market growth for new nuclear, the economics are daunting.

First of a kind (FOAK) SMR costs could be as high as $8,000 per kilowatt (kW) and as low as $6,000 per kW, according to industry estimates cited by Wood Mackenzie. Analysts there expect that FOAK costs will be at the high end of this range, and could be even higher, as developers build out early-stage projects.

Sexstone told Power Engineering supply chain partnerships will be crucial to success.

“If we’re going to build two, three hundred or more of these [BWRX-300s], I think it’s going to be crucial that we have really good partnerships and we’re able to grow the supply chain in Canada, in the U.S., and globally,” he said.

In March 2023 the company announced a technical collaboration agreement with Ontario Power Generation (OPG), Tennessee Valley Authority (TVA) and Synthos Green Energy (SGE) aimed at speeding up the regulatory process and deployment.

Through the agreement, the partners will invest a total of around $400 million in the development of the BWRX-300 standard design and detailed design for key components, including reactor pressure vessel and internals. The collaborators are forming a Design Center Working Group with the purpose of ensuring the standard design is deployable in the U.S., Canada, Poland and beyond.

“The goal is, once that standard is set, it doesn’t change,” said Sexstone. “Then we can work on driving down the cost curve as we deploy multiple reactors.”

He added: “We have to get this first one or two right.”

OPG aims to deploy the BWRX-300 at its Darlington New Nuclear Project site in Clarington, Ontario. A commercial contract between GE Hitachi, Ontario Power Generation, SNC-Lavalin and Aecon was inked in January 2023. In 2022 the Canada Infrastructure Bank committed C$970 million ($713 million) toward the project in the bank’s largest investment in clean power to date.

This would be the first grid-scale SMR in North America. Site preparation is currently underway, with GE-Hitachi expecting approval to begin construction by late-2024. The reactor could be built by late-2028 or early-2029.

“We’re getting the site ready, finalizing both standard and site-specific design, ordering long lead engineering equipment important to maintaining the construction schedule,” Sexstone said.

In August 2022, TVA began planning and preliminary licensing for potential deployment of the BWRX-300 at its Clinch River Site near Oak Ridge, Tennessee. In June 2022 SaskPower announced that it had selected the BWRX-300 for potential deployment in Saskatchewan in the mid-2030s.

GE Hitachi, NuScale and Holtec are among the companies developing water-cooled SMRs. Other advanced reactor technology under development includes the use of nontraditional coolants such as liquid metals, salts and gases.

“We’ve got all these projects starting and funded by the government and private industry to develop new designs,” said Doug True, who is chief nuclear officer of the Nuclear Energy Institute (NEI). “It’s just a really exciting time to be in the industry.”

Another boost came from the federal Inflation Reduction Act (IRA), which offers a generous tax credit for advanced nuclear reactors and microreactors.

This has helped SMRs become even more attractive to utilities. True said NEI surveyed Chief Nuclear Officers at U.S. utilities in 2022, asking how much advanced nuclear they would need to meet decarbonization goals. He said the cumulative response was greater than 90 GW.

NEI updated the survey following the IRA’s passage and saw about a 10% increase, with personnel saying they’d need about 100 GW in new nuclear.

For another perspective, recent assessments cited in the Electric Power Reserarch Institute (EPRI) Advanced Reactor Roadmap suggest that over the next 10-20 years, the need to deploy advanced reactors in the United States and Canada will rival, and likely exceed, the scale of the entire existing operating nuclear energy capacity in North America.

“There are going to be challenges,” said True. “But the way that other countries have gotten their costs down for nuclear [reactors] is by getting good at building them. These first plants will get there, and we’ll learn, and we’ll get better and better.”

Wood Mackenzie’s modeling shows that if costs fall to $120/MWh by 2030, SMRs will be competitive with nuclear pressurized water reactors (PWRs), gas and coal – both abated and unabated – in some regions of the world.