The U.S. Department of Energy (DOE) announced that it has opened applications for funding of up to $900 million to support Gen III+ small modular reactor (SMR) technologies. According to the DOE, the new funding is aimed at spurring the deployment of advanced reactor technologies across the U.S., and encourage follow-on reactor projects, to support U.S. climate goals and meet growing demand for clean and affordable power.

SMRs are advanced nuclear reactors that are substantially smaller than traditional nuclear power plants, providing benefits including faster build times and the ability to be deployed closer to the grid, while producing carbon-free energy.

According to the DOE, the new funding comes as the U.S. will need an estimated 700-900 GW of additional power generation capacity to reach net-zero emissions by 2050, with nuclear power – which currently provides nearly half of the carbon-free electricity in the U.S. – providing “a proven option” to help meet this demand.

U.S. Secretary of Energy Jennifer M. Granholm said:

“Revitalizing America’s nuclear sector is key to adding more carbon free energy to the grid and meeting the needs of our growing economy—from AI and data centers to manufacturing and healthcare.”

The new funding is created by the Consolidated Appropriations Act of 2024 and utilizes funds from the Bipartisan Infrastructure Law, and is anticipated to be offered in two tiers, including a “First Mover Team Support” tier to provide up to $800 million to support up to two first mover teams of utility, reactor vendor, constructor, and end-users/off-takers committed to deploying a first plant, and a “Fast Follower Deployment Support” tier of up to $100 million to spur additional Gen III+ SMR deployments by addressing key gaps in areas such as design, licensing, supplier development, and site preparation.

The funding comes amidst a flurry of moves by large tech companies turning to nuclear power to address their growing data center energy needs and help meet their climate goals, including Google and Amazon who each announced SMR-focused agreements last week, and Microsoft, which recently signed a deal to enable the restart of the Three Mile Island Unit 1 nuclear reactor in Pennsylvania.

White House National Climate Advisor Ali Zaidi said:

“All across the country, we are seeing a muscular resurgence in American energy innovation – from bringing back previously shuttered nuclear plants to bringing online new technologies and new reactors. America’s nuclear industry is racing ahead because strong Biden-Harris policies are spurring billions in private sector investment into this critical technology, which will lower energy costs and create good-paying union jobs.”