Fueling the Future: DOE Unlocks Over $94 Million for Small Modular Reactor Advancement
The United States is making a significant push to accelerate its nuclear energy ambitions, with the Department of Energy (DOE) recently channeling more than $94 million into eight pivotal projects. These strategic investments aim to streamline the site permitting process and bolster the domestic supply chain for advanced light-water Small Modular Reactors (SMRs), laying crucial groundwork for their widespread deployment across the nation.
This latest round of funding, distributed among companies and public entities spanning eight states, directly addresses critical bottlenecks that have historically hampered the growth of the U.S. nuclear industry. By targeting licensing hurdles, supply chain deficiencies, and site preparation challenges, the DOE seeks to catalyze rapid deployment of Gen III+ SMR technologies. Energy Secretary Chris Wright underscored the urgency, stating that these advanced reactors offer the reliable, continuous power necessary to support America’s manufacturing expansion, burgeoning data centers, and the exponential growth of artificial intelligence, all while fortifying a more robust and secure national electric grid. The immediate goal is to bring these reactors online as swiftly as possible, marking a new chapter in American energy leadership.
Strategic Investments in SMR Permitting and Development
A substantial portion of the newly announced, cost-sharing grants is dedicated to advancing early site permitting for future SMR facilities. Nebraska Public Power District secured a leading allocation of $27.86 million, specifically aimed at obtaining an “early site permit” from the Nuclear Regulatory Commission. This critical step de-risks future development by establishing the suitability of a location for nuclear construction long before specific reactor designs are finalized. Similarly, Constellation SMR Development LLC received $17.26 million to pursue early site permitting for a potential SMR location within New York, further expanding the geographical reach of this innovative power generation technology.
Beyond site preparation, the DOE’s funding meticulously targets enhancements across the nuclear supply chain, ensuring that the necessary components and materials are readily available for SMR construction. BWXT Nuclear Energy Inc. was awarded $21.42 million. This investment will facilitate the procurement of specialized equipment for its existing facility in Mount Vernon, Indiana, enabling the final assembly of reactor pressure vessels and the production of other large, essential nuclear reactor components. This directly strengthens a vital part of the domestic manufacturing base required for SMR deployment.
Further bolstering manufacturing capabilities, Scot Forge Co. received $12.27 million. This capital infusion will fund the acquisition and installation of a state-of-the-art vertical turning lathe and a gantry-style milling machine at its Spring Grove, Illinois facility. These advanced tools are crucial for manufacturing large, high-precision components vital for Gen III+ SMRs, showcasing a commitment to domestic production of sophisticated nuclear parts.
Enhancing Fuel Fabrication and Component Production
The grants also extend to critical areas of nuclear fuel cycle and specialized component fabrication. Framatome U.S. Government Solutions LLC secured $8.8 million to significantly expand its fuel fabrication plant in Richland, Washington. This funding will enable the company to increase the number of ceramic pellet production lines, boosting its annual uranium production capacity by an additional 200 metric tons. This expansion is crucial for ensuring a secure and ample supply of nuclear fuel for the next generation of reactors.
Global Nuclear Fuel Americas LLC received $3 million, earmarked for establishing a second fuel rod production line dedicated to boiling water reactors at its Wilmington, North Carolina facility. This investment will facilitate the procurement of equipment to automate the pellet inspection process and implement automated storage and handling systems for pellets, enhancing efficiency and quality in fuel rod manufacturing.
Specialized forging capabilities also saw investment, with American Forgemasters Co. allocated $2.9 million. This funding will enable the company to acquire a new furnace specifically designed for producing large component forgings for Gen III+ SMRs at its New Castle, Pennsylvania facility. Such capabilities are indispensable for manufacturing robust, high-integrity components required for nuclear applications. Lastly, Container Technologies Industries LLC received $547,900 to expand its nuclear quality assurance certifications at its Helenwood, Tennessee facility. This expansion will enable the facility to produce high-specification steel necessary for Gen III+ SMRs, integrating more domestic suppliers into the advanced nuclear supply chain.
Completing a $900 Million De-risking Initiative
This round of funding marks the completion of the DOE’s comprehensive $900 million initiative, launched in March 2025, aimed at de-risking the deployment of Gen III+ SMRs. These newly announced projects constitute Tier 2 of the program, building upon previous foundational investments.
Last year, the initial awards, categorized as Tier 1 and totaling up to $800 million, provided significant support to two key players in the SMR landscape: the Tennessee Valley Authority (TVA) and Holtec Government Services. The DOE, in a statement on December 2, 2025, confirmed that these Tier 2 selections are projected to facilitate new nuclear generation by the early 2030s, solidify domestic supply chains, and align with the administration’s broader energy policy objectives for a nuclear renaissance and enhanced energy independence.
The Tennessee Valley Authority (TVA) received up to $400 million under Tier 1 to advance the deployment of a GE Vernova Hitachi BWRX-300 SMR at its Clinch River Nuclear site in Tennessee. This funding also supports additional units in collaboration with Indiana Michigan Power and Elementl. TVA notably became the first U.S. utility to have a construction permit application for a BWRX-300 SMR accepted by the Nuclear Regulatory Commission. The Clinch River project is envisioned as a national blueprint for the safe, efficient, and cost-effective deployment of SMRs, paving the way for a new era of American nuclear energy leadership.
Concurrently, Holtec Government Services was allotted up to $400 million to deploy two SMR-300 reactors at the Palisades Nuclear Generating Station site in Covert, Michigan. Holtec is pursuing an innovative “one-stop-shop” model for SMR deployment, integrating roles as a technology vendor, supply chain partner, nuclear plant constructor (in partnership with Hyundai Engineering & Construction), plant operator, and electricity merchant, selling power directly to nearby utilities and end-users. This milestone-based, cost-share support from the DOE is crucial for advancing licensing, pre-construction activities, and supply-chain mobilization for the Palisades SMR-300 project.
Holtec’s proposal further includes a multi-site deployment pathway, aiming to establish a repeatable, fleet-scale model. This approach, a core requirement of the Tier 1 program, is designed to drive down costs and shorten construction durations through standardization and manufacturing efficiencies. The DOE indicated that further Tier 2 awards might be issued should additional funds become available, signaling ongoing commitment to this transformative energy strategy.