Biden's climate bill classifies nuclear power as a form of clean energy

The world of nuclear energy in the United States is currently experiencing a period of uncertainty, with a mix of setbacks and potential opportunities.

Recent developments have seen the US Department of Energy approving the country's first permits for a next-generation Small Modular Reactor (SMR) in January 2023. However, the rosy prognoses for modular reactors do not envision these starting up before 2030.

The question arises whether the time and money spent on nuclear energy would be better invested in genuine, proven clean technologies. This concern is heightened by the fact that nearly all of the new designs for modular reactors are unproven.

Over the last decade, 12 reactors have shut down in the US, and the cost of nuclear power has increased by 23%. The Vogtle Electric Generating Plant, the only new nuclear plant built in the US over nearly 30 years, is expected to go online later this year. However, the cost of the Vogtle project is $34 billion, making it the most expensive power station on earth.

These financial challenges have not deterred some countries from attempting to build more nuclear plants. A deal for a US nuclear startup to build a nuclear plant in Romania has been brokered, but no construction has begun.

In an effort to support the nuclear industry, the 2021 Biden infrastructure act put $6 billion toward existing reactors that are under economic threat of premature closures. The Inflation Reduction Act of 2022 also allocated funding for renewable nuclear energy projects, aiming to stimulate both public and private investments necessary for technological innovation and industrial competitiveness in clean energy sectors.

The IRA offers a 'zero-emission nuclear' power production credit providing up to $15 per megawatt-hour for the electricity produced by operational plants. Additionally, the act provides tax incentives for clean energy technologies, including advanced reactors.

Despite the financial hurdles, optimism persists. Schlissel predicts that the era of mega-sized reactors could be over and that of the modular reactors will begin. Modular reactors, such as those Bill Gates is building, could be equally expensive as the mega-sized reactors. However, their smaller size and potential for mass production could make them more economically viable in the long run.

The Vogtle project, despite its high cost, is significant as it represents the first new nuclear plant in the US in nearly three decades. Its success or failure could influence the future of nuclear energy in the country.

The financial disasters at the Vogtle Nuclear Project in the US and the reactors being built in the UK have not deterred some countries from attempting to build more nuclear plants. The US Inflation Reduction Act of 2022 devotes $6 billion to nuclear energy, indicating a continued commitment to the sector.

However, the future of nuclear energy in the US remains uncertain. The balance between the potential benefits and the financial risks is a topic of ongoing debate. As the country navigates this complex landscape, the focus remains on finding solutions that can provide clean, reliable energy while minimising financial burdens.