DOE announces $900 million funding opportunity to deploy new generation of nuclear reactors

The U.S. Department of Energy (DOE) is unveiling a funding opportunity announcement (FOA) to advance clean energy initiatives throughout the country with nuclear power. The FOA will make $900 million in funding available to support the domestic deployment of Generation III+ (Gen III+) small modular reactor (SMR) technologies.

The DOE’s FOA focuses on encouraging the private sector to establish a sustainable pathway for deploying Gen III+ SMRs. Siphoning funding from the Bipartisan Infrastructure Law of 2021, the DOE will distribute funds to projects that spur fleet-level deployment of clean nuclear energy throughout the nation and support the agency’s long-term goal of achieving net-zero emissions by 2050.

Gen III+ SMRs are advanced nuclear reactors designed for enhanced safety, efficiency and scalability. These reactors offer deployment flexibility for various configurations, making them suitable for diverse applications like power generation, desalination and heat processing.

The modular design of these reactors allows for factory production, reduced construction costs and easier deployment, while also supporting the national transition to cleaner energy sources and zero-emissions energy production.

Gen III+ SMR technologies. offer an alternative to existing light-water nuclear reactors, utilizing technologies that could create a new pathway for nuclear deployments and operations nationwide.

Awards under this $900 million FOA will be divided into two tiers.

The first tier, known as First Mover Team Support, will provide up to $800 million in milestone-based awards for up to two first mover teams through the Office of Clean Energy Demonstrations. The teams, consisting of utility, reactor vendors, constructors and end-users, will deploy a first plant while developing a multi-reactor and Gen III+ SMR orderbook. Additionally, the National Nuclear Security Administration will work in tandem with first mover teams to implement safeguards and security measures into the projects.

Eligible entities for First Mover Team Support include U.S. commercial electric utilities, an end-user partnering with a utility, project development companies and an incorporated consortium that includes a utility. The lead applicant’s team must involve a Gen III+ SMR technology vendor and an engineering, procurement and construction contractor.

The second tier, Fast Follower Deployment Support, is making $100 million available for projects through the Office of Nuclear Energy. This tier will offer multiple awards to address key gaps hindering the domestic nuclear industry such as licensing, design, supplier development and site preparation.

For tier two, planned U.S. owners and utilities for domestic Gen III+ SMR deployment projects and other domestic entities will be eligible to apply. Reactor technology vendors, fuel manufacturers, supply chain vendors, contractors or other domestic nuclear industry entities will be allowed to operate in support of eligible applying entities.

The DOE is scheduling an informational webinar on Oct. 22 to assist potential applicants through the process. Additional questions may be directed to the DOE via email, Gen3PlusSMR@hq.doe.gov. Full applications for the Gen III+ SMR FOA are due online by Jan. 25.

This FOA will back goals outlined in the federal Justice40 initiative, which calls for 40% of the overall benefits of a project or program to be directed to disadvantaged or underserved communities.

Additional information and program guidelines can be found on the Office of Clean Energy Demonstrations’ Funding Opportunity Exchange.

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