The U.S. Department of Energy has announced a significant federal investment to accelerate the deployment of advanced light water small modular reactors in the United States, selecting the Tennessee Valley Authority and Holtec Government Services to receive a combined $800 million in cost-shared funding. The program is designed to jump-start early commercial projects in Tennessee and Michigan, scale domestic nuclear generation capacity, and strengthen the nation’s supply chain as the country prepares for rising electricity demand.
The Department of Energy expects these first-mover projects to enable new nuclear generation in the early 2030s, while also supporting follow-on deployments and supply chain expansion nationwide. The initiative aligns with the administration’s objective of increasing reliable, affordable energy capacity and positioning nuclear power as a central component of America’s long-term energy strategy.
TVA will receive $400 million to advance development of a GE Vernova Hitachi BWRX 300 reactor at the Clinch River Nuclear site in Tennessee. The authority also plans to accelerate additional units with Indiana Michigan Power and Elementl and will collaborate with domestic supply chain partners, including Scot Forge, North American Forgemasters, BWX Technologies, and Aecon. Additional project partners include Duke Energy, Oak Ridge Associated Universities, and the Electric Power Research Institute.
Holtec will also receive $400 million to deploy two SMR 300 reactors at the Palisades Nuclear Generating Station site in Covert, Michigan. The project is intended to demonstrate viability for additional domestic and international orders. Holtec will use an integrated approach that combines technology development, supply chain participation, construction through its partnership with Hyundai Engineering and Construction, plant operations, and electricity sales to nearby utilities and end users.
The Department of Energy launched a $900 million solicitation in March 2025 to reduce risk around Gen III plus SMR deployment. The remaining $100 million from that program will be awarded later this year to support additional efforts related to design, licensing, supply chain readiness, and site preparation.
KEY QUOTE:
“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.”
Chris Wright, U.S. Secretary of Energy
