Energy department hands out $800M in grants for small nuclear reactors

The U.S. Department of Energy, under the Trump administration, has awarded $800 million in grants to two nuclear companies, the Tennessee Valley Authority (TVA) and Holtec, to develop small modular reactors (SMRs) based on established nuclear fission technology. TVA plans to build a single 300-megawatt reactor from GE Vernova Hitachi in Tennessee, while Holtec will construct two 300-megawatt reactors in Michigan. These projects aim to address the growing electricity demand driven in part by expanding AI technologies. The reactors are Generation III+ designs, which are advanced versions of long-standing nuclear reactor models. By scaling these designs down to small modular sizes, the initiative hopes to reduce costs through mass production of parts and increased efficiency as construction teams gain experience. However, as of now, no small modular reactors are operational, according to the World Nuclear Association, indicating that these projects are still in developmental stages.