Earlier this month, Tennessee Gov. Bill Lee announced the state would receive a $400 million grant from the U.S. Department of Energy (DOE) to support development of a small modular reactor (SMR) in East Tennessee. The nuclear reactor would be the nation’s first commercial SMR, with the Tennessee Valley Authority (TVA) leading the development coalition and grant application process.
The reactor is a BWRX-300 model, designed by a private energy company working closely with TVA. It will be built at the Clinch River site near Oak Ridge, which is among a small number of federally approved nuclear sites that remain undeveloped.
The grant was awarded through the DOE’s Generation III+ SMR program. The intent is to build a series of small, modern and flexible reactors that can be deployed more easily than traditional reactors. According to the DOE, this will strengthen the nation’s power grid and energy supply chain.
The TVA led a group of utility and industry partners in applying for the funding. The coalition includes Indiana Michigan Power and private energy collaborations, along with supply chain partners. Oak Ridge Associated Universities and the Electric Power Research Institute are also supporting the project. This broad partnership reflects industry confidence in the BWRX-300 design, according to officials.
According to Gov. Lee, Tennessee has positioned itself as a hub for advanced nuclear technology in recent years. Since launching the Nuclear Energy Fund in 2023, the state has invested $70 million to attract nuclear technology companies and build out its energy supply chain. Those efforts have drawn companies like Orano, BWXT Enrichment, Oklo and Radiant Industries to the region, resulting in $7.3 billion in private-sector investment and nearly 2,000 new jobs.
To guide the state’s long-term nuclear strategy, the Lee administration created the Tennessee Nuclear Energy Advisory Council under Executive Order 101. The council includes scientists, industry executives, academics and former federal officials who advise on policy and help move advanced nuclear projects forward.
To support the TVA’s grant application, Gov. Lee and the Tennessee General Assembly committed up to $50 million in the state budget earlier this year for SMR construction efforts. This builds on the state’s broader strategy to develop a nuclear innovation ecosystem in East Tennessee, according to officials.
The TVA submitted a construction permit application to the U.S. Nuclear Regulatory Commission (NRC) in May 2025. That application is under review, and if the project moves forward as planned, commercial operation of the first BWRX-300 could begin in the early 2030s.
The Tennessee grant is part of a larger DOE initiative to deploy advanced nuclear capacity across the country. The department issued a $900 million solicitation in March 2025 to de-risk SMR deployment. The remaining $100 million will be awarded later this year to support additional projects and work through challenges in reactor design, licensing and supply chain development.
Photo by Rob from Pexels
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