In a recent address at the CERAWeek by S&P Global energy conference, Ruth Porat, President and Chief Investment Officer of Alphabet, emphasized the necessity of incorporating more nuclear power into the United States’ energy strategy. The company is actively pursuing an innovative approach to cut costs associated with building new nuclear reactors through a collaboration with Kairos Power to introduce a series of small modular reactors.
Importance of Nuclear Energy
“Nuclear must be part of the energy mix due to its unique advantages,” Porat stated, highlighting the growing need for reliable and carbon-free energy amidst increasing electricity demands driven by technologies such as artificial intelligence. Despite the push for nuclear energy, projects in the U.S. have historically encountered significant cost overruns and lengthy delays. Porat urged both the public and private sectors to expedite the development of new nuclear plants using standardized construction methods to effectively reduce costs.
Strategic Partnership with Kairos Power
In October, Google, Alphabet’s subsidiary, made a strategic move by securing a deal to purchase power generated from the small reactors being developed by Kairos Power. These next-gen reactors are designed to enhance manufacturing efficiencies, aiming to lower costs and expedite deployment timelines. The goal is to have the first small modular reactor operational by 2030, with additional reactors scheduled to come online by 2035.
Porat stressed the importance of initiating this process promptly to replicate successful models, stating, “If we don’t start now in a focused way and replicate a number of them, we won’t be able to drive down the cost curve effectively.”
Challenges Ahead for Nuclear Energy
Despite the ambition, industry leaders like John Ketchum, CEO of NextEra, expressed skepticism about nuclear power’s immediate impact, indicating that it may not become a viable energy solution until at least 2035. As one of the largest developers of renewable energy in the U.S., NextEra underscores that renewable sources like solar and wind present the most immediate and cost-effective solutions to meet rising energy demands.
Ketchum pointed out that the costs of developing new natural gas turbines have surged, with construction timelines extending to 2030 or beyond. “Renewables are ready right now since they’ve already been deployed,” Ketchum noted, arguing that transitioning to renewables is both cheaper and available compared to the pressing timelines for nuclear energy development.
Future of Small Modular Reactors
NextEra is also investigating the feasibility of restarting the closed Duane Arnold nuclear plant in Iowa, which would add to the potential wave of nuclear restarts along with the Palisades plant in Michigan and Three Mile Island by 2028, pending regulatory approval.
Ketchum believes that the integration of small modular reactors presents a viable opportunity to enhance existing infrastructure. “There is a tremendous chance to co-locate these reactors at our current sites,” he stated. However, he emphasized the need for the industry to evaluate which companies possess the optimal technology, suggesting that the current landscape of 95 small modular reactor firms needs to consolidate down to around five or ten key players.
With advancements in nuclear technology on the horizon, coupled with strong advocacy for renewable energy, the coming years will be critical in determining the energy mix of the United States.
