The Obama administration announced Friday that it will supplement its $12.5 billion loan guarantee program to build and license new nuclear reactors, but very little new money is being made available.
The announcement was made during a nuclear energy summit held at the White House Friday to discuss the role of nuclear power in producing zero-emission energy to combat climate change.
The Energy Department will be “supplementing its existing solicitation that makes up to $12.5 billion in loan guarantees available to support innovative nuclear energy projects,” according to a White House fact sheet.
That means the administration will allow nuclear plant developers to use government loans to cover the costs of more items related to power plant development, including licensing costs, compared with the previous policy that provided loan backing solely for the construction of the plant itself.
“The solicitation states that eligible projects can include construction of advanced nuclear reactors, small modular reactors, uprates and upgrades at existing facilities, and front-end nuclear facilities,” the White House said.
Putting the costs of licensing a new plant in the new plan addresses the new, small modular power plants that the administration has attempted to jumpstart a market for, but with little success.
The cost of licensing one of the small plants at the Nuclear Regulatory Commission can be high, which manufacturers have complained about for years.
The administration wants new nuclear technology, such as small modular reactors which cost less than their larger cousins, but still provide 24-hour, seven-day-a-week power.
The small reactors also have safer operating systems than older designs that make them resistant to catastrophic failures like those experienced in Fukushima, Japan, in 2011.
The only problem: None are being built, and no licenses have been granted by the federal government to build one.
The administration said it has invested $452 million over six years to help reduce the engineering costs associated with certification and licensing activities for the reactors, and expects a design license won’t be submitted to the Nuclear Regulatory Commission until just before President Obama leaves office.
The Energy Department, also, is establishing what it calls the Gateway for Accelerated Innovation in Nuclear, which is sort of a one-stop shop for pushing new nuclear reactor designs toward commercialization, the White House said.
