The U.S. Department of Energy has selected the Tennessee Valley Authority and Holtec Government Services to receive a combined $800 million in federal cost-shared funding to launch early deployments of advanced light-water small modular reactors (SMRs), part of a national effort to expand nuclear power generation in the early 2030s.
Advanced SMRs are poised to become the first new nuclear units the U.S. can deploy at scale in decades, giving the grid reliable, round-the-clock power that can be added quickly as electricity demand accelerates.
Their factory-built design cuts construction time, reduces cost overruns, and strengthens energy security by expanding domestic nuclear capacity.
The DOE funding will support initial SMR projects in Tennessee and Michigan and, according to DOE, help establish the supply chains needed to scale additional plants across the country.
The agency said the effort aligns with President Donald Trump's directives to accelerate a nuclear energy expansion as electricity demand surges nationwide.
Energy Secretary Chris Wright said nuclear power remains essential for meeting round-the-clock grid needs and supporting the expanding U.S. manufacturing and data-center sectors.
"President Trump has made clear that America is going to build more energy, not less, and nuclear is central to that mission," Wright said.
He added that advanced light-water SMRs will strengthen grid reliability and help the United States move quickly toward new nuclear generation.
DOE selected two "first-mover" teams to build the nation's initial Gen III+ small modular reactors.
TVA will receive $400 million to advance deployment of the GE Hitachi BWRX-300 at the Clinch River Nuclear Site in Tennessee and support planning for additional units with Indiana Michigan Power and other partners.
The project also includes work with U.S. supply-chain companies such as Scot Forge, North American Forgemasters, BWX Technologies, and Aecon.
Holtec will receive $400 million to deploy two SMR-300 units at the Palisades site along the Lake Michigan coastline, only 75 miles northeast of Chicago.
The project is designed to demonstrate how modular reactors can be replicated for domestic and overseas markets.
Holtec plans a unified approach to reactor development by serving as designer, manufacturer, and constructor alongside Hyundai Engineering & Construction, plant operator, and electricity supplier.
DOE officials say small modular reactors offer one of the fastest routes to new nuclear capacity because they rely on familiar light-water technology, can be built in factories rather than on-site, and use existing fuel and component supply chains.
Supporters argue these features lower the risk and shorten construction timelines, making SMRs a practical tool for reinforcing the grid as demand climbs.
The new awards follow DOE's March 2025 launch of a $900 million program aimed at de-risking Gen III+ SMR deployment.
The remaining $100 million in that fund will be awarded later this year to support additional projects and address licensing, supply-chain, and site-readiness challenges.
Jim Mishler ✉
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