Nuclear Power
TVA, Holtec Gain $800M US Funding for Small Nuclear Reactor Builds
Nuclear developer Holtec International gained up to $400 million in federal funding to build two units of its SMR-300 small modular nuclear reactor design at the site of the full-scale Palisades nuclear power plant in Michigan, set to begin restart in January.
Small modular nuclear power reactors using light water cooling technology to be developed for U.S. commercial use by power provider Tennessee Valley Authority in its multi-state region and by private developer Holtec International in Michigan will gain up to $400 million each in federal cost-share funds to advance projects and related supply chains, the U.S, Energy Dept. announced this month.
Energy Secretary Chris Wright said the project investments in third-generation nuclear power technology will help advance Trump administration goals outlined earlier this year to boost that energy source domestically—particularly to insure U.S. energy security and gain global artificial intelligence dominance. “Advanced light water SMRs will give our nation the reliable, round-the-clock power we need ... support data centers and AI growth, and reinforce a stronger, more secure electric grid,” he said.
The funding actually stems from a Biden-era solicitation released in October 2024 using 2021 federal infrastructure act funding that includes another $100 million to be awarded later this year to support more deployments and address barriers in design, licensing, supply chain and site readiness, said DOE. But the Trump administration revised the solicitation last spring to remove required community benefit financial investments by winners.
DOE funding will assist TVA to build the first two-unit, estimated 600-MW GE Vernova Hitachi BWRX-300 SMR at its Clinch River site in Tennessee by the early 2030s and plan future deployments with partners Indiana Michigan Power and BWX Technologies. The TVA development team also includes contractors Bechtel and Ontario-based Aecon, Duke Energy, Oak Ridge Associated Universities and the Electric Power Research Institute.
TVA's construction permit application to the U.S. Nuclear Regulatory Commission for the BWRX-300 at Clinch River, submitted in May, still is under agency review. “This award affirms TVA’s continued leadership in shaping the nation’s nuclear energy future,” said Don Moul, TVA president and CEO of the independent federal corporate agency that supplies power to 10 million people in most of Tennessee, northern Alabama, northeastern Mississippi, southwestern Kentucky and smaller areas of neighboring states.
“Unlike previous nuclear construction projects in the U.S., contractors will work with [GE Vernova Hitachi Nuclear Energy] and TVA as a highly integrated project team to plan, design and potentially procure, construct and commission Clinch River Unit 1.” Bechtel said in January. “The integrated project delivery model is the preferred method that will make our project a true team effort,” said Bob Deacy, TVA senior vice president and its Clinch River project leader. “We will actively work together toward a target budget and schedule – creating a significant advantage to drive nuclear innovation, share risks and reduce costs.”
TVA also has signed public-private partnerships with other SMR developers in recent months, including Kairos Power and NuScale, as well as with nuclear fusion developer Type One Energy. TVA said it currently has about 11 GW of requested load for AI and data centers across its area, including from Google, Meta and xAI.
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TVA’s technology collaboration partner Ontario Power Generation has started construction of four GE Vernova BWRX-300 units, with the first to be online by 2030 at its Darlington power plant. The province approved construction plans and awarded a contract in May to a partnership between Aecon and Kiewit Nuclear Canada for construction planning and execution, and project management. Aecon said its share of the contract is worth about $930 million.
GE Vernova Hitachi Nuclear Energy and design-build firm Samsung C&T in October also announced a strategic alliance to advance BWRX-300 SMR deployment in markets outside North America.
Going Modular in Michigan
Holtec's funding will aid company plans to deploy its dual-unit SMR-300 reactors at the site of the 800-MW Palisades nuclear power plant it owns and also seeks to restart in January in Covert, Mich., adding an additional 600 MW. The developer also signed an expanded alliance agreement with Hyundai Engineering & Construction to build a 10-GW fleet of SMR-300s in North America through the 2030s, beginning with the Palisades project. The contractors will manage reactor construction, deployment, operation, supply chain and power selling. Project cost has been estimated at $2.1 billion to $2.7 billion per reactor.
“Targeting first power by 2030, our Mission 2030 initiative will position the Palisades SMR project as the reference plant for all future SMR-300 deployments—domestically and globally,” said Holtec.
Company founder, chairman & CEO Krishna Singh told attendees of an American Nuclear Society conference last month that the company's SMR-300 reactor "was born the day after" the 2011 Fukushima nuclear plant meltdown in Japan, but it did not win DOE funding at the time because of agency disagreement on its design. Holtec self-funded the project, Singh noted, and will submit its design next year to the U.S. Nuclear Regulatory Commission for limited work authorization.
According to a Holtec statement, “DOE’s support is an essential enabler of the Palisades SMR-300 project, moving it from development to deployment by building on the government’s prior support" under the agency's Advanced Reactor Demonstration Program dating to 2020.
Holtec also has a $1.52-billion conditional loan from DOE for the Palisades restart, although the action faces new litigation from anti nuclear groups that have sued the developer and the commission in federal court.
Other lead applicants for the $900-million SMR federal funding included utility Arizona Public Service and developer Constellation, according to media reports. The latter also closed a $1-billion DOE loan last month to restart the undamaged 835-MW reactor unit at the Three Mile Island nuclear power plant in Pennsylvania.
