U.S. states are leading a new wave of investment in advanced nuclear energy, aiming to boost energy security, support industrial growth, and revitalize local economies.

Over the last few years, numerous U.S. states have expressed the desire to be among the first to deploy the next generation of nuclear reactors. In general, states that have stepped forward in this field tend to share similarities: they have expertise in other energy sources (like Texas and Wyoming), they have industrial use cases and customers (like Louisiana), and some (like Tennessee) have a thriving traditional nuclear energy industry. Although states pursuing early deployment of advanced nuclear energy may shoulder some of the risks of initial deployment, especially in terms of cost and lengthened timelines, they also stand to gain energy security and economic benefits from advanced reactors, which can provide energy on and off the grid.

State-Level Initiatives

Earlier this year, Tennessee Governor Bill Lee proposed “an additional $92.6 million state investment to boost the [nuclear energy] sector,” and last November, Texas Governor Greg Abbott stated, “Texas is the energy capital of the world, and we are ready to be No. 1 in advanced nuclear power.” Last week, Louisiana State University signed a memorandum of understanding with Idaho National Laboratory (INL) to collaborate on advanced nuclear energy. Meanwhile, political leaders in Louisiana have been working with INL over the last year to build a framework for advanced reactor deployment, which could power Louisiana’s chemical and petroleum production and provide industrial heat. Also last year, Utah Governor Spencer Cox announced Operation Gigawatt, a plan to “[enhance policies] to enable clean, reliable energy like nuclear and geothermal” in order to double Utah’s power production in the next decade. 

In addition to policy announcements, Wyoming last year broke ground on TerraPower’s grid-scale Natrium project, and it also awarded the second phase of a contract to Virginia-based reactor developer BWX Technologies. Beyond states looking to deploy next-generation nuclear energy technologies, many are invested in making the most of their existing resources. South Carolina’s Oconee Nuclear Station received an additional twenty-year operating license this week, and Three Mile Island and Palisades have both recently announced restarts.

Along with states that wish to deploy advanced nuclear energy technologies, the last year has seen an increase in new types of customers for nuclear energy. While utilities have traditionally been the customers of nuclear energy for the last several decades, tech companies like Microsoft, Google, and Amazon made headlines last year as they announced partnerships and investments in next-generation nuclear companies to provide their burgeoning demands for energy, driven largely by data centers and generative artificial intelligence. 

Industrial customers have also expressed strong interest in using nuclear energy to power steel production; oil and gas operations in the Permian Basin; and mining—for example, in Wyoming’s trona patch, a sodium carbonate compound processed into soda ash or baking soda. These new customers bring innovative business models, along with infusions of private sector cash, into an industry with high capital costs. As nuclear energy moves into applications beyond the grid and expands beyond its traditional customer base, the industries based around these new applications will experience the benefits of clean and abundant energy. 

Investment Risks with Long-Term Rewards

The risks of being the first deployers of advanced nuclear are primarily centered on the high up-front costs of building a first-of-a-kind reactor, as well as the challenges of establishing a workforce and supply chain for a first-of-a-kind project. However, states and companies that move quickly into advanced reactor technologies also stand to enjoy benefits, both at home and in industrial exports. Domestically, nuclear power plants have the potential to revitalize states and regions of the United States that have experienced economic and population decline. Internationally, industrial goods that have been manufactured using nuclear energy can move up the value chain and be more competitive in the global market, especially as importers place a value on low-carbon manufacturing. 

Jennifer T. Gordon is director of the Atlantic Council Global Energy Center’s Nuclear Energy Policy Initiative. Jennifer was previously a senior energy analyst at the National Journal’s Network Science Initiative.

Image: United States Nuclear Regulatory Commission/Wikimedia Commons

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