Nuclear Startups Sidestep Safety Watchdog as Profit Trumps Regulation

U.S. Nuclear Energy: A Privatized Model with Growing Risks

Among nations harnessing nuclear energy, the United States stands out for its highly privatized approach. While countries like China and France manage nuclear operations through state-owned enterprises—with France fully renationalizing its nuclear sector in 2023—the U.S. entrusts its reactors almost entirely to the private sector.

Advocates of free-market principles argue this model is ideal. However, critics highlight its unintended consequences: chronic understaffing, reliance on public subsidies for private profit, and mounting safety concerns as a wave of nuclear startups enters the market.

Nuclear Startups Avoid Industry Safety Watchdog

New reporting from Politico’s energy publication E&E News reveals that several emerging nuclear companies are declining to join the Institute of Nuclear Power Operations (INPO), the industry’s primary safety organization. Founded in 1979 in response to the partial meltdown at Three Mile Island, INPO is a nonprofit nuclear watchdog responsible for plant inspections, operational guidance, and personnel training.

Membership in INPO is voluntary, but until now, every nuclear operator in the U.S. has participated. However, of the nine nuclear startups that have emerged alongside the tech industry’s data center boom, only one has joined INPO. These startups include companies like Aalo Atomics, which focuses on "mass-manufactured nuclear" technology, and Antares Nuclear, which specializes in "microreactors."

Profit Over Safety: The Root of the Problem

According to Scott Morris, a nuclear consultant and former U.S. Nuclear Regulatory Commission (NRC) official, the reluctance to join INPO stems from financial priorities. "These entities are businesses, and they’re trying to make money," Morris told E&E News. "Any infrastructure that you put around that entity that is not directly contributing to its bottom line, it’s going to be questioned."

The decision to bypass INPO is particularly alarming given recent regulatory changes under the Trump administration, which reduced government oversight and delegated more regulatory authority to INPO. These changes have made certain operational regulations optional for nuclear energy companies.

"In fact, the NRC has delegated some of its regulatory authority, so to speak, to [the] INPO, specifically in the realm of operations and maintenance training programs. The NRC and INPO are not duplicative; they’re complimentary."

Regulatory Rollbacks Heighten Concerns

The shift in regulatory responsibility from the NRC to INPO has raised red flags among safety advocates. While INPO plays a crucial role in operational guidance and training, its primary function is not regulatory enforcement. Critics argue that this delegation effectively removes mandatory safety oversight for nuclear startups, leaving critical decisions to self-regulation.

What’s Next for Nuclear Safety?

As nuclear startups race to capitalize on the growing demand for clean energy, the absence of mandatory INPO membership underscores a fundamental tension between profit and safety. With only one of nine new companies joining the watchdog, the industry’s commitment to operational safety remains uncertain.

For now, the question lingers: Will the pursuit of profit continue to overshadow the need for rigorous safety standards in America’s nuclear future?