Amid the calls by the international energy industry to diversify portfolios to include more clean energy production, the United States is investing heavily in its nuclear energy capacity. This new directive comes straight from the top echelons of the American federal government, with Donald Trump insisting that America increase spending on its nuclear energy market. Now, the US Energy Department has selected TVA and Holtec as the preferred companies to develop a pair of SMRs that will strengthen the US nuclear energy market and enable it to compete with the industrious nation of China.
The American revival of its nuclear energy sector is gaining traction
For years, the nuclear energy market has stagnated, waiting for the right time to make a triumphant comeback to reshape the global energy market. A major hindrance has been the substantial costs of reviving the nuclear sector in the United States. However, President Trump has been attempting to redefine what the American energy market is capable of and has been rolling back permits for wind projects in favor of the more traditional energy generation properties of nuclear power.
Trump has instructed his administration to provide the necessary funds to revive the nuclear energy sector in the United States. In that vein, the US Energy Department has selected the federally owned Tennessee Valley Authority, along with international energy firm Holtec, to develop two new small modular reactors that fall under the Infrastructure Investment and Jobs Act.
The Trump administration is set to invest upwards of $800 million in SMR deployment
Under the Trump administration, the US Energy Department is set to invest upwards of $800 million for two new small modular reactors in the US. This marks a new era of nuclear energy production as the nation is aiming to keep up with the astonishing pace of the Chinese nuclear sector, which has been growing at a rapid pace over the past few years to accommodate AI-driven energy needs.
The Tennessee Valley Authority and Holtec are set to receive the grants from the US government
The first $400 million grant will be issued to the Tennessee Valley Authority, which will use the funds to construct the first BWRX-300 reactor. The reactor was developed by a joint venture between GE Vernova and the Japanese company Hitachi. GE Hitachi Nuclear Energy has emerged as a key player in the nuclear revival in the US through its long-standing partnership with GE Vernova in developing SMRs for the US nuclear market.
The second allocation of government funds will be heading for Holtec, which has reimagined its position in the nuclear energy market following three decades of decommissioning of nuclear facilities. The company now wants to become an operator in the nuclear market. The US Energy Department has been on a roll in recent months, with the “Project Tetra” being developed by Terrestrial Energy gaining steam.
“President Trump has made clear that America is going to build more energy, not less, and nuclear is central to that mission. Advanced light-water SMRs will give our nation the reliable, round-the-clock power we need to fuel the President’s manufacturing boom, support data centers and AI growth, and reinforce a stronger, more secure electric grid. These awards ensure we can deploy these reactors as soon as possible.” – Secretary of Energy Chris Wright
The future of the US energy market is heavily dependent on the nuclear sector
The AI race has definitely influenced the President’s decision to increase investments in the nuclear energy sector in the United States. At the moment, one could say that China is leading the advanced AI race, but America is home to some of the largest tech companies in the world, which all need massive amounts of energy for their data centers. Amazon has even backed a new nuclear energy project in Washington state. This exemplifies the substantial growth of the US nuclear market in the coming years.
