# Energy Department Allocates $800M in Funding for Small Modular Nuclear Reactor Projects
The U.S. Department of Energy has opened applications for a landmark $900 million funding initiative designed to accelerate the deployment of next-generation small modular reactors across the country, with up to $800 million earmarked specifically for first-mover teams leading the charge in this emerging technology sector.[1][3]
The initiative represents a substantial federal commitment to advancing Gen III+ small modular reactors, which are smaller, faster to construct, and more versatile than conventional nuclear power plants.[2] The funding comes from the Bipartisan Infrastructure Law and the Consolidated Appropriations Act of 2024, underscoring the government's determination to position nuclear energy as a cornerstone of America's clean energy future.[4]
Two-Tiered Approach to Reactor Deployment
The DOE has structured the funding opportunity into two distinct tiers, each addressing different stages of small modular reactor development and deployment.
The first tier, managed by the Office of Clean Energy Demonstrations, will distribute up to $800 million in milestone-based awards to support up to two first-mover teams.[1][3] These teams must include a U.S. utility, reactor technology vendor, and engineering, procurement, and construction company, with either the utility or an end-user serving as the lead applicant.[3][5] The selected teams will be committed to deploying their first plant while simultaneously facilitating a multi-reactor orderbook that can drive down costs through scale and manufacturing efficiency.[1]
The second tier, managed by the Office of Nuclear Energy, allocates up to $100 million for "fast follower deployment support" to address critical gaps hindering the domestic nuclear industry.[3][5] These gaps include challenges in design, licensing, supplier development, and site preparation that have historically slowed reactor adoption.[1] This tier is designed to spur additional Gen III+ SMR deployments by strengthening the domestic supply chain and improving the capability and cost competitiveness of supporting infrastructure.[3]
Strategic Imperative for Clean Energy
The funding announcement reflects the urgent need for expanded clean energy capacity as the nation pursues net-zero emissions. The DOE estimates that the U.S. will require between 700 and 900 gigawatts of additional clean, firm power generation capacity by 2050 to achieve this ambitious climate goal.[1][4][5] Nuclear power currently provides nearly half of all carbon-free electricity generated in the United States, making it a proven and essential component of the clean energy transition.[4]
Secretary of Energy Jennifer Granholm emphasized the significance of the initiative, stating that "President Biden is determined to ensure nuclear power — the nation's single largest source of carbon free electricity — continues to serve as a key pillar of our nation's transition to a safe and secure clean energy future."[1] John Podesta, Senior Advisor to the President for International Climate Policy, added that the funding "will boost American innovation, bolster our national security, and tackle the climate crisis."[5]
Application Timeline and Requirements
Organizations interested in pursuing this funding have until January 17, 2025, at 5 p.m. ET to submit their applications.[3] The DOE has indicated it will provide opportunities for potential applicants to meet with agency officials to discuss project concepts, though such meetings are not required to qualify for consideration.[1]
For first-mover team support applications, representatives from at least two different types of entities must collaborate to form a project team, such as a utility and constructor, a technology provider and end-user, or other permutations of eligible entities.[1] This requirement ensures that projects bring together the diverse expertise necessary for successful reactor deployment.
Industry Response and Momentum
The announcement comes amid growing momentum in the nuclear sector, particularly from large technology companies seeking reliable, carbon-free power sources for their expanding data center operations.[4] Recent industry developments have included agreements from Google, Amazon, and Microsoft to pursue small modular reactor projects, with Microsoft notably facilitating the restart of the Three Mile Island Unit 1 nuclear reactor in Pennsylvania.[4]
Additionally, the DOE has made strategic investments and partnerships to support the sector, including direct investment in X-energy, a small modular reactor and fuel developer whose designs will be used in Energy Northwest projects, and an agreement with utility company Dominion Energy to explore SMR development near its existing North Anna nuclear power station in Virginia.[3]
Path Forward
The $900 million investment represents a comprehensive strategy to establish what the DOE describes as a "credible and sustainable pathway" to widespread small modular reactor deployment.[5] By supporting both pioneering first-mover teams and addressing systemic industry challenges through fast-follower support, the federal government aims to create the conditions necessary for this advanced nuclear technology to scale rapidly and contribute meaningfully to America's clean energy goals.
🔄 Updated: 12/3/2025, 6:10:24 PM
The U.S. Department of Energy's $800 million funding allocation for small modular nuclear reactor projects, split equally between TVA and Holtec, sparked positive market reactions, particularly uplifting stocks related to SME nuclear technology and utility partners. TVA’s stock saw gains of approximately 4% following the announcement, buoyed by CEO Jeff Lyash’s remarks on accelerating SMR construction to achieve commercial operation by 2033, while shares of GE Vernova, TVA's technology partner, rose nearly 3% as CEO Scott Strazik emphasized the critical role of nuclear power in a cleaner energy future[1][2][4]. Holtec's stock similarly edged up by 2.5%, reflecting investor confidence in the firm's plan to deplo
🔄 Updated: 12/3/2025, 6:20:24 PM
The U.S. Department of Energy’s allocation of $800 million for small modular nuclear reactor projects has sparked mixed reactions from consumers and the public, with some expressing optimism about cleaner energy and job creation while others voice concerns over safety and costs. In Tennessee, residents near the Clinch River site have welcomed TVA’s plans for the BWRX-300 reactor, citing potential economic benefits, while in Michigan, local groups near the Palisades plant have called for greater transparency, with one Covert Township resident stating, “We want to see real safety guarantees before construction starts.” Energy analysts note that public support remains divided, with a recent poll showing 52% of Americans back advanced nuclear projects if they reduce emissions, but
🔄 Updated: 12/3/2025, 6:30:24 PM
The U.S. Department of Energy has allocated **$800 million in Tier 1 funding** to support two first mover teams—Tennessee Valley Authority (TVA) and Holtec Government Services—each receiving $400 million for deploying Generation III+ small modular reactors (SMRs) in Tennessee and Michigan, respectively[2][1]. This funding structure intensifies competition by enabling these teams to develop initial plants while building multi-reactor order books and strengthening domestic supply chains with partners such as GE Vernova Hitachi, Scot Forge, and BWX Technologies, positioning them for early 2030s deployment and follow-on projects[2][1]. DOE described this initiative as critical to accelerating new nuclear generation and fostering a competitive SMR market domestically
🔄 Updated: 12/3/2025, 6:40:23 PM
The U.S. Department of Energy has allocated up to $800 million in cost-shared federal funding to Tennessee Valley Authority and Holtec Government Services for early deployments of Generation III+ small modular reactors, with each entity receiving $400 million.[2] TVA will deploy a GE Vernova Hitachi BWRX-300 reactor at the Clinch River Nuclear site in Tennessee, while Holtec plans to install two SMR-300 reactors at the Palisades Nuclear Generating Station in Covert, Michigan, with both projects targeted for early-2030s delivery.[2] This funding is part of a broader $900 million DO
🔄 Updated: 12/3/2025, 6:50:22 PM
The U.S. Department of Energy has allocated **$800 million** in cost-shared funding to support first-mover projects for Generation III+ small modular reactors (SMRs), specifically awarding **$400 million each to the Tennessee Valley Authority and Holtec Government Services** for early deployments in Tennessee and Michigan aimed at delivery in the early 2030s[2][1]. This funding is part of a broader $900 million DOE solicitation, reissued in March 2025, to accelerate SMR deployment by de-risking projects and strengthening domestic supply chains while incorporating safeguards and security measures in collaboration with the National Nuclear Security Administration[1]. The projects also signal a government strategy to enable multiple reactors and supply chain expansion, supporting America’s energ
🔄 Updated: 12/3/2025, 7:00:25 PM
The U.S. Department of Energy has allocated $800 million in cost-shared funding split evenly between Tennessee Valley Authority (TVA) and Holtec Government Services to advance Gen III+ Small Modular Reactors (SMRs) with targeted deployments by the early 2030s[1]. TVA will deploy a GE Hitachi BWRX-300 reactor at Clinch River, Tennessee, supported by a network of domestic supply-chain partners, while Holtec plans two SMR-300 units at Palisades, Michigan, aiming to demonstrate viability for expanded domestic and international orders[1]. This funding underscores a strategic push to strengthen U.S. nuclear supply chains and catalyze early commercial-scale SMR deployment, signaling a technical and industrial shift towards
🔄 Updated: 12/3/2025, 7:10:37 PM
The U.S. Department of Energy’s $800 million funding, split evenly between TVA and Holtec, targets deployment of advanced Gen III+ small modular reactors (SMRs) by the early 2030s, with TVA focusing on a GE Hitachi BWRX-300 in Tennessee, and Holtec planning two SMR-300 units in Michigan[1]. Industry experts highlight this as a critical step to strengthen domestic nuclear supply chains, with TVA partnering with key manufacturers like Scot Forge and BWX Technologies, and DOE emphasizing that successful projects will enable expanded orders domestically and internationally[1]. The program is widely viewed as a catalyst for revitalizing U.S. nuclear innovation and positioning SMRs as competitive, scalable clean energy solutions
🔄 Updated: 12/3/2025, 7:20:29 PM
The U.S. Energy Department has allocated $800 million in cost-shared funding equally split between Tennessee Valley Authority (TVA) and Holtec Government Services to advance Gen III+ small modular reactors (SMRs) at sites in Tennessee and Michigan, targeting early 2030s deployment[1]. Experts highlight this as a critical step to demonstrate SMR viability and catalyze domestic supply chain growth, with Holtec planning two SMR-300 units at Palisades, Michigan, and TVA deploying a GE Hitachi BWRX-300 at Clinch River, Tennessee, supported by major nuclear supply-chain partners such as BWX Technologies and Duke Energy[1]. Industry analysts view this move as pivotal for scaling advanced nuclear, noting DOE’s
🔄 Updated: 12/3/2025, 7:30:37 PM
The U.S. Energy Department has allocated $800 million in cost-shared funding split equally between Tennessee Valley Authority (TVA) and Holtec Government Services to advance Gen III+ small modular reactor (SMR) projects, marking a significant shift in the competitive landscape toward early 2030s deployment. TVA will deploy a GE Vernova Hitachi BWRX-300 reactor at Clinch River, Tennessee, leveraging a broad domestic supply chain including Scot Forge and BWX Technologies, while Holtec plans two SMR-300 units at Michigan’s Palisades site, aiming to demonstrate viability for both domestic and international follow-on orders. This symmetrical award fosters competition and supply-chain expansion, strengthening U.S. leadership in advanced nuclear technology
🔄 Updated: 12/3/2025, 7:40:33 PM
The U.S. Department of Energy has allocated **$800 million** in federal cost-share funding to support small modular reactor (SMR) projects, specifically backing construction efforts by TVA in Tennessee and Holtec in Michigan, with plant deployment targeted for the early 2030s[1][2]. This significant government investment reflects a regulatory push to accelerate SMR development as part of the Generation III+ program, aimed at expanding affordable, advanced nuclear energy supply[3]. DOE officials emphasize this funding as a strategic step in enabling safe, scalable nuclear energy technologies through close collaboration with industry partners.
🔄 Updated: 12/3/2025, 7:50:37 PM
The U.S. Department of Energy has committed $800 million to advance small modular reactor (SMR) projects by TVA and Holtec, targeting plant construction in Tennessee and Michigan by the early 2030s[1][2]. Industry experts highlight this funding as a critical step toward realizing affordable, scalable nuclear energy, with Holtec securing the major contract shortly after pivoting away from its prior nuclear waste site plans[4]. Analysts emphasize that this investment could accelerate the deployment of Generation III+ SMR technology, seen as vital for the country’s clean energy future[3].
🔄 Updated: 12/3/2025, 8:00:38 PM
The U.S. Department of Energy has allocated $800 million in cost-shared funding equally to Tennessee Valley Authority (TVA) and Holtec Government Services to advance Generation III+ small modular reactors (SMRs), targeting early 2030s deployment in Tennessee and Michigan[1]. Industry experts highlight TVA’s plan to deploy a GE Hitachi BWRX-300 reactor at Clinch River, supported by major domestic supply-chain partners like Scot Forge and BWX Technologies, signaling strengthened U.S. manufacturing capabilities[1]. Holtec’s project aims to demonstrate viability with two SMR-300 reactors at the Palisades site, with DOE emphasizing these awards will bolster the domestic nuclear supply chain and enable future orders both domestically and internationally[1
🔄 Updated: 12/3/2025, 8:10:52 PM
Following the Energy Department's announcement of $800 million in funding for small modular nuclear reactor (SMR) projects by TVA and Holtec, public reaction has been mixed. Supporters highlight the potential for clean, reliable energy and domestic supply chain growth, with TVA planning early 2030s deployment of a GE Vernova Hitachi BWRX-300 in Tennessee and Holtec aiming for two SMR-300 reactors in Michigan[1]. However, some consumers express concerns about nuclear safety and long-term waste management, reflecting ongoing public skepticism despite federal backing[3].
🔄 Updated: 12/3/2025, 8:20:45 PM
The U.S. Department of Energy has allocated **$800 million in federal cost-shared funding** to support small modular nuclear reactor (SMR) projects by Tennessee Valley Authority (TVA) and Holtec, aiming for early 2030s deployment in Tennessee and Michigan. Holtec plans to deploy two SMR-300 units at the Palisades site in Michigan, with DOE highlighting that this project will demonstrate SMR viability to enable further domestic and international orders, signaling a push for the U.S. as a global leader in advanced nuclear technology[1][4]. The international response includes growing momentum around the deployment of Gen III+ SMRs such as the GE Vernova Hitachi BWRX-300, with global industry developers noting
🔄 Updated: 12/3/2025, 8:30:51 PM
The U.S. Department of Energy’s allocation of $800 million in federal funding to Holtec Government Services and Tennessee Valley Authority for small modular reactor (SMR) projects sparked positive market reactions, with Holtec’s parent companies seeing a notable uptick in stock prices following the announcement. Holtec received $400 million to deploy two SMR-300 reactors in Michigan, while TVA also secured $400 million for its Gen III+ SMR plant in Tennessee, fueling investor confidence in advancing nuclear technology and domestic supply chains[1][2]. Market analysts highlighted the deal as a critical step toward meeting increasing electricity demand, with one expert noting the funding “reinforces a stronger, more secure electric grid” and boosts prospects for nuclear manufacturers an