The U.S. Department of Energy is distributing over $94 million across eight companies to accelerate the commercial deployment of advanced small modular reactors, targeting critical bottlenecks in licensing and manufacturing.
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US Backs Nuclear SMR Push With $94 Million in New Funding
The U.S. Department of Energy awarded more than $94 million in federal funding to eight companies to speed the deployment of advanced light-water small modular reactors, or SMRs. The initiative aims to build out America’s nuclear supply chain and support a new fleet of reactors expected to come online in the 2030s, with major awards going to Constellation Energy (CEG) and BWX Technologies (BWXT).
“Advanced light-water SMRs will give our nation the reliable, round-the-clock power we need to fuel the President’s manufacturing boom, support data centers and AI growth, and reinforce a stronger, more secure electric grid,” U.S. Secretary of Energy Chris Wright said. “These awards ensure we can deploy these reactors as soon as possible.”
The funding, part of the DOE’s Generation III+ SMR Pathway to Deployment Program, will cover up to 50 percent of project costs. A unit of Constellation, the country’s largest nuclear operator, will receive up to $17.3 million to secure an early site permit for SMRs in New York. Nuclear supplier BWXT Technologies won a grant of up to $21.4 million to complete a plant in Indiana that builds large components like reactor pressure vessels.
This investment is designed to de-risk private development, which has moved slowly due to high upfront costs and regulatory hurdles. By funding site permitting and factory upgrades, the government aims to create the industrial foundation for a large-scale rollout of SMRs to meet projected rises in electricity demand from artificial intelligence and industrial growth.
Site Readiness and Factory Upgrades
Two of the largest awards focus on preparing locations for future reactors, a process the industry considers a major bottleneck. In addition to Constellation’s project in New York, the Nebraska Public Power District was awarded nearly $27.9 million to complete similar permitting work with the U.S. Nuclear Regulatory Commission for a proposed site in Nebraska. Early Site Permits allow companies to resolve environmental and safety requirements before committing to construction.
The bulk of the remaining funds targets gaps in the U.S. manufacturing supply chain. BWXT’s $21.4 million award will expand its Mount Vernon, Indiana, facility. Other manufacturing grants include $12.3 million for Scot Forge Company to install heavy machining equipment in Illinois and $2.9 million for American Forgemasters Company to add a new furnace for producing large nuclear forgings.
Domestic Fuel Production
Several grants aim to strengthen the U.S. nuclear fuel supply chain, which is reliant on foreign sources. Framatome U.S. Government Solutions, partially owned by Mitsubishi Heavy Industries and France’s EDF, received $8.8 million to expand its fuel fabrication plant in Richland, Washington. The project will add ceramic pellet production lines, increasing annual uranium fuel capacity.
Additionally, Global Nuclear Fuel Americas, a joint venture of GE Vernova (GEV) and Hitachi, secured $3 million to establish a second fuel rod production line at its North Carolina facility. The DOE said expanding domestic fuel production is critical for scaling up SMR deployment over the next decade. This follows a previous grant to Holtec, a privately held SMR developer expected to go public, and the Tennessee Valley Authority.
This article is for informational purposes only and does not constitute investment advice.
[1] The U.S. Is Handing Out Money for Nuclear Reactors. These Stocks Benefit. - Barron's[2] 5 stocks that benefit from the government’s $94 million spending spree on nuclear reactors[3] DOE awards $94m to accelerate light-water SMRs deployment in the US - Innovation News Network[4] U.S. Energy Department awards $94 million to back small modular reactor deployment - Traders Union
