With power consumption rising in the U.S. and concerns about the reliance on foreign technologies for low-emission power mounting, the U.S. government is looking for every possible way to diversify its clean power supply.
It’s with these issues in mind that Congress has passed the ADVANCE Act, which promises to reform the regulatory agency overseeing nuclear development in the U.S. and ideally accelerate the development of next-generation nuclear technology — including small modular reactors.
The bill is poised to streamline regulatory processes, provide financial incentives, support workforce development, foster public-private partnerships, and encourage international collaboration.
However, the U.S. has a long road ahead of it to catch up with international competition. Right now, India and China are on a pace to lap the rest of the world with their nuclear ambitions, according to a survey from the World Nuclear Association.
Projected global growth of nuclear power. Image Credit: World Nuclear Association
Key Provisions of the ADVANCE Act
1. Streamlining Regulatory Processes: One of the core objectives of the ADVANCE Act is to simplify and expedite the regulatory approval process for nuclear projects. The bill mandates the Nuclear Regulatory Commission (NRC) to implement more efficient licensing procedures, reducing the time and cost associated with bringing advanced nuclear technologies to market. This provision is crucial for encouraging investment in the nuclear sector and facilitating the deployment of new reactor designs.
2. Financial Incentives for R&D: The bill provides substantial financial incentives for research and development in advanced nuclear technologies. These incentives include grants, tax credits, and loan guarantees aimed at supporting innovation and reducing the financial risks for companies investing in new nuclear solutions. By fostering a favorable economic environment, the ADVANCE Act seeks to attract private sector investment and accelerate technological advancements.
3. Workforce Training Programs: Recognizing the importance of a skilled workforce, the ADVANCE Act establishes programs for education and training in nuclear science and engineering. These programs are designed to develop a robust talent pipeline capable of supporting the growing demands of the nuclear industry. By investing in human capital, the bill ensures that the U.S. has the expertise needed to maintain its leadership in nuclear technology.
4. Public-Private Partnerships: The legislation encourages collaboration between the government and private sector through public-private partnerships. These partnerships are intended to leverage the strengths of both sectors, combining public resources with private innovation and efficiency. This collaborative approach is expected to drive significant progress in nuclear research and deployment.
5. International Collaboration: The ADVANCE Act promotes international cooperation on nuclear energy advancements. By engaging in collaborative efforts with other countries, the U.S. can share knowledge, expertise, and best practices, enhancing global nuclear safety and security.
Beneficiaries: Small Modular Reactor (SMR) Companies
The passage of the ADVANCE Act could be transformational for Small Modular Reactors (SMRs). These reactors are seen as a key component of the future nuclear landscape due to their smaller size, enhanced safety features, and flexibility in deployment. Several companies stand to gain from the legislation:
- NuScale Power: NuScale is a leading SMR company that has made significant strides in developing its innovative reactor design. With the ADVANCE Act’s support for streamlined regulatory processes and financial incentives, NuScale is well-positioned to accelerate the commercialization of its SMRs.
- TerraPower: Co-founded by Bill Gates, TerraPower focuses on advanced nuclear reactor designs, including SMRs. The company’s mission aligns with the goals of the ADVANCE Act, and the financial and regulatory support provided by the bill will aid TerraPower in advancing its technologies.
- Holtec International: Holtec is another prominent player in the SMR market. The company’s SMR-160 design is expected to benefit from the regulatory and financial frameworks established by the ADVANCE Act, facilitating its path to market readiness.
Private and Public Sector Commitments Are Pouring In
“I put in over a billion and I’ll put in billions more.” That’s the word from Bill Gates, the Microsoft co-founder and anchor investor in the climate-focused investment firm Breakthrough Energy, on his investment in the next generation nuclear technology developer TerraPower.
Gates isn’t alone. 2022 was hailed as a watershed year for both public and private investment in new nuclear capacity. Please use the sharing tools found via the share button at the top or side of articles. Federal legislation in the
New federal legislation enacted in the past 18 months will provide nearly $40bn into the sector over the coming decade, according to industry estimates, while roughly $5bn in private funds has flowed into companies designing new types of reactor in the past year alone, according to the Financial Times.
The pent up demand for any type of cleaner baseload power to meet the needs of high-growth industries like data centers and the re-shoring of American manufacturing is driving investment across a few energy generation technologies. Few have as much bi-partisan political support as nuclear. Challenges remain, and the reforms to the Nuclear Regulatory Commission are no replacement for a fully-formed nuclear policy, but they are a step in the right direction. The problem with nuclear power is as much political as it is technical — with perhaps the political risk and regulatory uncertainy providing more of an obstacle than the industry’s technical progress. These new congressional actions should go some way to alleviating the problem.
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