U.S. Nuclear Renaissance Gains Momentum with Two New Reactor Projects Launching in 2023

The United States has officially entered a new phase in nuclear energy development, with two groundbreaking projects commencing in 2023. After a 13-year gap since the last major nuclear project began, Kairos Power initiated construction on its demonstration plant in Oak Ridge, Tennessee, last Friday. This was followed by TerraPower, the nuclear energy company founded by Bill Gates, starting work on its first power plant in Kemmerer, Wyoming, earlier this week.

Chris Levesque, president and CEO of TerraPower, emphasized the scale of the project in an interview with The Wall Street Journal:

"This isn’t a test reactor. This is a grid-scale nuclear reactor that will be built in 42 months."

These developments signal a potential shift in U.S. energy policy, though the country still lags far behind China in nuclear construction output. Meanwhile, California faces regulatory hurdles, including a legislative ban on new reactors, though a recent analysis suggests extending the life of the state’s last operating nuclear plant, Diablo Canyon, could yield substantial savings.

Diablo Canyon Extension Could Save California Over $20 Billion

A study by the Massachusetts Institute of Technology’s Center for Energy and Environmental Policy Research found that extending operations at Diablo Canyon from 2030 to 2045 could save California more than $7.6 billion in capital and operating costs. When compared to the state’s current portfolio of renewable energy alternatives, the savings could exceed $20 billion, or more than $1.3 billion per year.

The report states:

"The total present value of savings for extending the life of [Diablo Canyon] exceeds $20 billion, or more than $1.3 billion per year."

Energy Department Mobilizes 90 Firms to Boost Nuclear Fuel Production

To support a potential nuclear renaissance, the U.S. Department of Energy (DOE) is taking aggressive steps to secure domestic nuclear fuel supplies. With a 2028 ban on Russian uranium imports looming, the DOE has enlisted 90 nuclear firms under a new initiative to accelerate fuel production. On Thursday, the agency invoked the Defense Production Act, a Cold War-era law, to bolster manufacturing capabilities.

The DOE launched the Nuclear Fuel Cycle Consortium, which includes representatives from leading nuclear industry players. This move follows significant federal funding allocated by both the Biden and Trump administrations to fuel enrichment projects in recent years.