Insider Brief
- The U.S. Department of Energy (DOE) has re-issued a $900 million funding initiative to support advanced small modular nuclear reactors (SMRs), aiming to meet growing electricity demand driven by AI expansion and industrial growth.
- DOE’s funding targets Generation III+ light-water SMRs, focusing on rapid deployment through existing supply chains, with up to $800 million reserved for immediate project teams and approximately $100 million dedicated to addressing historical barriers such as licensing and supply chain issues.
- Applications for this funding are due by April 23, 2025, with awards based solely on technical merit, as the DOE moves swiftly to boost domestic nuclear energy and enhance energy security.
The U.S. Department of Energy (DOE) is launching a fresh bid to drive forward small modular nuclear reactors, offering $900 million to back technologies aimed at meeting surging electricity demand linked to booming artificial intelligence and industrial growth.
The re-issued funding opportunity aims to deploy advanced small modular reactors (SMRs), compact nuclear power plants designed to provide stable and reliable electricity while fitting within existing power grids and supply chains, according to the DOE. The Department noted the initiative aligns closely with President Trump’s strategy promoting both American energy independence and leadership in AI.
“America’s nuclear energy renaissance starts now,” U.S. Secretary of Energy Chris Wright said in a statement. “Abundant and affordable energy is key to our nation’s economic prosperity and security. This solicitation is a call to action for early movers seeking to put more energy on the grid through the deployment of advanced light-water small modular reactors.”
The DOE’s move reflects an urgency driven by rising electricity demand across the U.S., amplified by significant growth in data centers, increased integration of AI technology, and an industrial sector dependent on consistent, uninterrupted power supply. Small modular reactors offer a promising solution due to their compact size and flexibility, which allows them to be installed more quickly and economically than traditional large-scale nuclear plants.
Specifically, the DOE’s funding targets Generation III+ light-water SMRs, a type of reactor designed with enhanced safety and efficiency features. These reactors can utilize much of the existing supply chain infrastructure already serving America’s traditional nuclear reactor fleet, streamlining the process of bringing new reactors online more swiftly.
The funding is structured in two tiers. The first tier, known as “First Mover Team Support,” dedicates up to $800 million to as many as two teams ready to immediately deploy their SMR projects. Each team, consisting of utilities, reactor vendors, construction firms, and end-users, will also work closely with the National Nuclear Security Administration to embed security measures directly into their reactor designs.
The second tier, called “Fast Follower Deployment Support,” allocates approximately $100 million to address challenges that have previously slowed domestic nuclear projects. This tier will specifically target gaps in design, regulatory licensing processes, supply chains, and site preparation, all critical barriers historically limiting the growth of nuclear power within the U.S.
Applications are open until April 23, 2025, at 5:00 p.m. ET. The DOE emphasizes that selection will rely exclusively on technical merit, urging both new applicants and those who previously applied in 2024 to submit proposals following the updated guidelines.
