The Nuclear Regulatory Commission (NRC) has granted TerraPower the necessary approval to construct a cutting-edge nuclear reactor near an aging coal power facility in Wyoming. This milestone marks the first permit issued by the NRC in nearly a decade.
Founded by Bill Gates in 2015 and supported by Nvidia, TerraPower has been collaborating with GE Vernova Hitachi to develop the Natrium reactor. This new power plant is set to produce 345 megawatts of energy, which is significantly smaller than contemporary full-sized reactors but larger than many small modular designs preferred by other innovators in the field.
What sets Natrium apart is not only its size but also its unique cooling mechanism. Unlike the majority of nuclear reactors built in the last five decades that utilize water for cooling, Natrium employs molten sodium, a choice that TerraPower claims enhances safety. This marks the first NRC approval for a commercial reactor using a non-water cooling system in over 40 years.
The reactor will maintain a surplus of molten sodium stored in large, insulated tanks. This innovative design allows for continuous atomic fission during low demand periods, with the heated sodium storing energy to compensate for fluctuations in wind and solar energy production. By operating near full capacity, this approach aims to reduce overall generation costs.
TerraPower's successful navigation of the established permitting process is notable, as it has secured permission to build on private land. While the Department of Energy has recently relaxed some safety regulations, these adjustments are applicable only to government-owned properties.
TerraPower is among a growing number of nuclear startups backed by tech giants, responding to the increasing electricity demands from data centers. As the need for enhanced generating capacity intensifies, there is a significant push for new nuclear projects.
Investor interest in this sector has surged, with nuclear startups attracting over $1 billion in funding recently. TerraPower itself has raised an impressive total of $1.7 billion, including a substantial $650 million investment round concluded in June.
While the momentum in the nuclear sector is promising, challenges remain. Nuclear energy has historically been one of the costliest forms of new generating capacity. This is partly due to budget overruns at large power plants, but also reflects the substantial advancements made by solar, wind, and battery technologies in reducing costs.
Many nuclear startups are aiming to utilize mass production techniques to lower capital expenses, although the effectiveness of this strategy is yet to be demonstrated. Although manufacturing efficiencies may help in cost reduction, it often takes a decade for these savings to be realized.