This solicitation makes available approximately $900 million in federal funds for projects that will create a credible and sustainable pathway to fleet-level deployment of Gen III+ SMRs. Gen III+ SMRs can provide around-the-clock electricity or process heat to meet the increasing demand for clean, reliable, firm electricity generation or process heat required by U.S. industries.
In particular, SMRs offer the potential for modularity, factory construction, and scalability to meet demand. Additionally, Gen III+ SMRs may be able to revitalize and leverage the service and supply chain infrastructure supporting the existing fleet of light water reactor designs, thus providing a near-term path for new nuclear deployments. However, a demonstration project is critical to overcoming the first-of-a-kind commercial adoption challenges for Gen III+ SMR technology, including:
· Cost Reliability – Delivered cost of recent reactor projects, including cost-overruns and project non-completion, has constrained nuclear energy relative to competing baseload technologies, such as natural gas.
· Resource Maturity – Multiple factors have hindered adoption including:
o Capital Flow – Delays and non-completion of past nuclear projects has resulted in capital flow constraints, where the return of capital and return on capital are on time horizons that inhibit investors and significantly impact an owner’s credit rating.
o Project Development, Integration, and Management – There is no leading constructor for new nuclear projects and the lack of integrated project delivery models has constrained prior projects.
o Manufacturing and Supply Chain – The current domestic nuclear supply chain faces severe bottlenecks on long-lead procurements for major project components. This lack of resilience in capacity, capability, and cost competitiveness is forcing procurements overseas.
o Workforce – The limited number of nuclear-qualified workers, such as welders and plant operators, presents a challenge to scaling nuclear deployments.
Licensing Uncertainty – The risk of licensing new technologies, including the timeframe and cost associated with receiving NRC approval of new nuclear designs, drives hesitancy for potential adopters.
Funding applications will be selected based on the expectations and details described throughout this solicitation. Priority will be given to projects with (1) the highest probability of a successful deployment, (2) the greatest potential to develop a Gen III+ SMR orderbook, and (3) the greatest potential contribution to the resilience of the domestic nuclear industry.