Oklo Signs $25M Deal for Data Center Power

• Oklo Signs $25M Deal for Data Center Power
• Norway Opens Site Selection Process for Five SMRs
• UK Gov’t Awards $3.4M to X-Energy and Cavendish Nuclear for Supply Chain Work
• New Industry Association for Maritime Nuclear Launched
• PSEG Nuclear To Seek 20-Year License Renewals For Three New Jersey Reactors
• Thorium Fuel Set for Testing at INL
• DOE Study – Coal to Nuclear – Shows Benefits to Communities

Oklo Signs $25M Deal for Data Center Power

The data center trade news site Data Center Dynamics reports that Oklo, a developer of a 15 MWe advanced reactor, has signed a $25M deal to provide up to to 500 MW of nuclear power. The data center developer Equinix made a $25 million prepayment as part of the power purchase agreement.

The deal was revealed in an S4 filing on April 2, 2024, with the SEC this week by AltC Acquisition Corp ahead of is SPAC merger announced in July 2023 which is worth an estimated $516M and is expected to close in July 2024.

The letter of intent is for Equinix to purchase power from Oklo’s planned ‘powerhouses’ to serve Equinix’s data centers in the US on a 20-year timeline – at rates decided in future Power Purchase Agreements (PPAs). Equinix will have the right to renew and extend PPAs for additional 20-year terms. Planned locations for the data centers and their reactor power sources were not disclosed in the filing.

The letter provides Equinix the right of first refusal for 36 months for the output of certain powerhouses for power capacity of no less than 100MWe and up to a cumulative maximum of 500MWe.

The current design of the Oklo Powerhouse advanced micro reactors is 15 MW. Either Oklo intends to deploy six of them for each 100 MW of power it plans to provide to Equinix or, hypothetically, the firm has a much bigger design waiting in the wings which it could further develop once it obtains an NRC license for the current 15 MW design.   This leaves open the question about the overall development of 500 MW of power for Equinix data centers. Microreactors typically offer power in the range of 1-20 MW and small modular reactors typically offer power from about 50 MW to 300 MW. Oklo claims on its website that a future iteration of its design will scale to 50 MW.

Oklo has an agreement with Centrus, a producer of enriched uranium for use in fabrication of nuclear fuel, to build two of its 15MWe SMRs in Portsmouth, OH.

The firm does not yet have an NRC license for its advanced reactor design. Oklo is currently making a second effort to complete the NRC safety design review process. The agency denied the first application in January 2022 saying the firm’s submission contained significant information gaps and in its classification of safety systems and components.

Since then Oklo has set its sights on a modification of its microreactor design which includes eliminating the heat pipes that were a significant design element. In effect, the firm is currently coming forward in its engagement with the NRC with a revised approach to meeting licensing requirements and with a revision to the reactor design itself.

Other Nuclear Power Projects for Data Centers

In October 2023  Blockchain firm Standard Power announced plans to procure 24 77 MWe SMRs from NuScale for two US data center sites, 12 in Ohio and 12 in Pennsylvania. The project is not yet funded nor have the locations been announced.

ENTRA1 Energy, an independent global energy development and production company, will support Standard Power’s two projects. In 2022, NuScale formed an exclusive global partnership with ENTRA1 Energy to commercialize the NuScale SMR Technology. Through this partnership, ENTRA1 Energy has the rights to develop, manage, own and operate energy production plants powered by NuScale’s approved SMR technology.

NuScale Application for NRC License for 77 MWe SMR

After beginning the technical review of NuScale’s application in March 2023, the NRC has docketed the application for NuScale’s VOYGR 6 plant design featuring an uprated 77 MWe small modular nuclear reactor (SMR), which will support capacity requirements for a wider range of customers. The NRC accepted NuScale’s Standard Design Approval Application for the 77 MWe power rated design in August 2023. The NRC offered a 24-month review process.

Microsoft Data Center Projects & Nuclear Power

Microsoft has previously signed a nuclear carbon credits deal with Ontario Power Generation for its operations in Canada, and recently signed an energy agreement deal with nuclear fusion startup Helion.  It has also signed a 24/7 nuclear power deal with Constellation to power its Boydton data center in Virginia.

More recently, Microsoft and Open  announced plans for a $100 billion investment on data centers with an estimated cumulative electrical power requirement of 5 GWe.

Amazon Strategy

Amazon Web Services (AWS) has acquired Talen Energy’s data center campus which is located adjacent to a nuclear power station in Pennsylvania. As part of the March 4th deal, Talen will supply AWS with electric power via a 10-year Power Purchase Agreement (PPA) from the Susquehanna reactor site.

Talen announced it has sold its 960MW Cumulus data center campus for $650 million to a ‘major cloud service provider’ which Talen identified as Amazon. S&P Global Market Intelligence reported additional financial details of the acquisition.

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Norway Opens Site Selection Process for Five SMRs

(WNN) With an eye on the eventual end of life of the North Sea oil and gas bonanza that has fueled the Norwegian economy for decades, one of Europe’s most staunchly anti-nuclear countries has opened a process to identify sites for five small nuclear reactors to provide 300 MW of electrical generation capacity.

Norsk Kjernekraft said it has decided to initiate work on the impact assessment of a plot of land in Øygarden municipality, west of Bergen, to assess the possibility of establishing a nuclear power plant comprising up to five small modular reactors.

The plot of land in question is adjacent to the Kollsnes industrial area. The 250-acre site is owned by landowner and former mayor of Øygarden, Rolv Svein Rougnø. Rougnø has entered into a letter of intent with Norsk Kjernekraft and the agreement outlines that the site can be acquired for use in the construction of small modular reactor (SMR) power plants.

Norsk Kjernekraft said the site has space for five SMRs, each with a generating capacity of 300 MWe. This means that the site has the potential for generating 12.5 TWh per year, corresponding to almost 10% of Norway’s current total electricity consumption.

The company said in a statement on its website that the history of Norsk Kjernekraft goes  the company was established in July 2022 by the M Vest group, which has its headquarters in Bergen. Trond Mohn, Norwegian billionaire businessman and philanthropist,  and Lars Moldestad, an executive in the oil & gas and petrochemical industry, are the largest owners.

“The time was ripe to start a company with the objective of building and operating small, modular nuclear power plants. Over the next few decades, Norway will phase out fossil energy, which will require a lot of power. Electrification of society becomes difficult or impossible without a solid base load from, for example, nuclear power. “

The company will compile a report, which will be sent to the Ministry of Oil and Energy for an assessment. The ministry will send the report out for consultation, and then the municipality, residents and industry will be able to make their comments. If approved by the ministry, the report and input will form the basis for an impact assessment. The company has informed the Directorate for Radiation Protection and Nuclear Safety of its plans.

Norsk Kjernekraft aims to build, own and operate SMR power plants in Norway in collaboration with power-intensive industry. It says it will prepare license applications. It will follow the International Atomic Energy Agency’s approach for milestones, and focus on what creates value in the early phase. Financing for the project has yet to be set nor have any potential investors been named for the venture.

IAEA Milestone Approach. Image: IAEA

The history of the project is that company entered into an agreement of intent last year on the investigation of nuclear power with several municipalities. In June 2023, it signed a letter of intent with TVO Nuclear Services – a consulting company wholly owned by Finnish utility Teollisuuden Voima Oyj – to jointly investigate the deployment of SMRs in Norway. The cooperation included the assessment of the suitability and effectiveness of the development of nuclear power in the Norwegian municipalities of Aure, Heim, Narvik and Vardø.

A new company, Halden Kjernekraft AS, has also been founded by Norsk Kjernekraft, Østfold Energi and the municipality of Halden to investigate the construction of a nuclear power plant based on SMRs at Halden, where a research reactor once operated. Interestingly, the firm’s website features an image of the conceptual developed site of a GE-Hitachi BWRX300 SMR.

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UK Gov’t Awards $3.4M to X-Energy and Cavendish Nuclear for Supply Chain Work

The UK Ministry of Nuclear and Renewables has awarded £3.34 million ($4.22M) to X-Energy and Cavendish Nuclear to further the development of their plans for advanced small modular reactors in the UK. The funding comes from the UK Government’s Future Nuclear Enabling Fund (“FNEF”). It will be matched by an equal amount by X-Energy for a total of $8.44 million. (£1 sterling equals $1.26 )

The companies will use the funds to develop UK-specific deployment plans including an assessment of domestic manufacturing and supply chain opportunities, constructability, modularization studies, and fuel management.

X-energy and Cavendish Nuclear also announced a partnership with Kier Group, a leading UK provider of construction and infrastructure services, to support constructability and supply chain analyses. Kier joins steel producer and engineer Sheffield Forgemasters and the Nuclear Advanced Manufacturing Research Centre (NAMRC) to support X-energy and Cavendish Nuclear in completing the scope outlined in their FNEF proposal.

The companies’ goal is for 80% of the value of the Xe-100 projects to flow to UK firms. Last year X-energy and Cavendish Nuclear signed a memorandum of understanding with Howden, the Glasgow-based gas circulator manufacturer. They will also work with Nuclear Waste Services to review the approach to spent fuel management. Note: Cavendish Nuclear is a wholly-owned subsidiary of Babcock International.

X-energy and Cavendish Nuclear are proposing to develop a multi-billion pound 12-reactor plant at Hartlepool, on England’s North Sea coast,, to be ready by the early 2030s. The companies plan to build a fleet of up to 40 of the advanced small modular Xe-100 reactors in the UK, creating thousands of high-quality jobs in construction and operations. This would provide 3,200 MW of electricity, enough power for 6 million homes, or 8,000 MW of versatile high temperature heat and steam to support zero-carbon manufacturing and industrial processes.

The companies plan to engage with the UK nuclear regulators to evaluate approaches to licensing the Xe-100 AMR. The design is already progressing through initial assessments by nuclear regulators in Canada and the United States.

The FNEF is intended for potential nuclear projects with mature technologies that could be in a position to take a Final Investment Decision (FID) within the next parliament. It aims to help industry reduce project risks so they are better positioned for future investment decisions.

The project is seen as a way for the UK government to place multiple bets on SMRs. The government is also considering a proposal by Rolls-Royce to build a fleet of 16 470 MW PWR type nuclear reactors at multiple sites across the nation. The new build would be sourced 100% from UK firms.

The government is also hosting a competition among six SMR developers, including X-Energy and Rolls-Royce, but has delayed its decision on financing awards. Rolls-Roycle has pointedly criticized the government for dragging its feet on the program.

However, the London-based Nuclear Industry Association welcomed the funding announcement. Chief executive Tom Greatrex said: “This funding shows the UK is committed to its advanced nuclear program which has huge potential in decarbonizing hard to abate sectors with its high temperature heat function, as well as producing clean, firm, British power for energy security and net zero.”

In a separate development, X-energy and Canadian power producer TransAlta recently announced they are to study the feasibility of deploying an Xe-100 at a repurposed fossil fuel power plant in the province of Alberta.

The Xe-100 is an 80 MW high-temperature reactor that can be scaled into a “four-pack” 320 MW power plant, fueled by the company’s proprietary Triso-X tri-structural isotropic particle fuel.

Plans for initial deployment of the Xe-100 at US chemical company Dow’s Seadrift facility in Texas and a new commercial facility to manufacture Triso-X are receiving support from the US Department of Energy’s advanced reactor demonstration program.

X-energy has also signed a joint development agreement with utility Energy Northwest for the deployment of up to 12 Xe-100 plants in central Washington State.

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New Industry Association for Maritime Nuclear Launched

A global group of leading companies with a common interest in developing nuclear energy solutions for the maritime sector have announced the formation of Nuclear Energy Maritime Organization (NEMO).

By bringing together stakeholders with relevant expertise, NEMO aims to assist nuclear and maritime regulators in the development of appropriate standards and rules for the deployment, operation and decommissioning of floating nuclear power.

NEMO will provide expert guidance and promote the highest safety, security, and environmental standards in the development of this nascent industrial sector, fostering collaboration, knowledge sharing, and advocacy among its members and stakeholders.

Advanced nuclear technologies deployed at sea can reduce environmental impact, enhance social responsibility, and increase economic competitiveness. NEMO aims to provide a platform for its members to network and facilitate a functional connection between regulators to foster development and exchange best practices.

NEMOs inaugural chairman is Dr. Mamdouh el-Shanawany, former head of the IAEA Safety Assessment Section and Global Nuclear Director at Lloyd’s Register. Mikal Bøe, the CEO of CORE POWER, has been appointed as Vice-Chair.

The formation of NEMO comes at a time of growing concensus over the need for nuclear power to play a role in the commercial maritime fleet’s future energy mix.

NEMO will be headquartered in London and will officially start its proceedings in 2Q 2024.

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PSEG Nuclear To Seek 20-Year License Renewals For Three New Jersey Reactors

• Plants could potentially operate for around 80 years

(NucNet) PSEG Nuclear has notified the Nuclear Regulatory Commission (NRC) that it intends to seek subsequent 20-year licence renewals for three nuclear power units at the Salem and Hope Creek stations in the state of New Jersey. The power stations are located on the banks of the Delaware River in southwestern New Jersey.

The renewals will be for Salem-1, Salem-2 and Hope Creek-1 and would see all three plants potentially operate for 80 years. PSEG Nuclear said the three units collectively produce nearly half of New Jersey’s electricity and 85% of the state’s carbon-free generation.

In a letter of intent submitted on 28 March, PSEG Nuclear told the NRC that it expects to submit the application for extension in the second quarter of 2027, which would begin an approximate two-year comprehensive NRC review and approval process. The early notification is intended to provide the NRC with time to ensure resource availability when the formal applications are submitted in 2027.

If approved by the NRC, the licence for Salem-1 would be extended from 2036 to 2056, for Salem-2 from 2040 to 2060, and for Hope Creek-1 from 2046 to 2066. Salem-1 began commercial operation in 1976, Salem-2 in 1980 and Hope Creek-1 in 1986.

PSEG Nuclear said that beginning in 2024, the nuclear Production Tax Credit (PTC) created in the federal Inflation Reduction Act will provide nuclear generators with nine years of financial support to 2032.

In a press statement the firm said, “The pricing visibility into 2032 provided by the nuclear PTC drove PSEG’s decision to retain and grow our nuclear fleet via prudent capital investments and will keep our state’s carbon-free nuclear fleet viable for the long-term.” The statement noted that over $100M in nuclear capital investment projects have already been approved by PSEG Nuclear and are in progress. These include plant upgrades and a transition to a two-year operating cycle at Hope Creek.

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Thorium Fuel Set for Testing at INL

Clean Core Thorium Energy announced that the accelerated irradiation testing and qualification of their patented ANEEL Fuel is set to begin in the Advanced Test Reactor (ATR) at the Idaho National Laboratory (INL). The fuel, made of thorium and high-assay low-enriched uranium (HALEU), was developed by Clean Core for use in pressurized heavy water reactors (PHWRs) and Canada deuterium uranium (CANDU) reactors.

The decision to proceed with testing is a key milestone in the company’s multi-year, multimillion-dollar joint effort with the US Department of Energy (DOE) to design, fabricate, and assemble the irradiation experiment.

In 2022, Clean Core signed a Strategic Partnership Project Agreement with INL to design and execute an irradiation experiment in ATR to demonstrate and assess the performance of Clean Core’s innovative Advanced Nuclear Energy for Enriched Life (ANEEL) fuel.

As part of the agreement, INL received over 300 ANEEL fuel pellets fabricated by Texas A&M University’s Department of Nuclear Engineering under INL’s quality assurance requirements. Upon receipt, INL developed the irradiation test plan, performed pre-irradiation characterization of the fuel pellets, designed and fabricated the experiment hardware and test trains, assembled the test trains, and finally inserted the experiment into the ATR.

The CCTE-ANEEL-1A irradiation experiment will target levels of high-burnup which are currently unreachable by traditional CANDU and PHWR fuels in order to demonstrate the potential of the ANEEL fuel. This fuel has the capability to realize significantly improved performance within existing and proven heavy water systems by leveraging thorium’s inherently superior nuclear-thermal and physical properties. The resulting benefits include decreased life-cycle operating costs, reduced high-level waste volumes, increased safety margins, and proliferation resistance.

Irradiation of the CCTE-ANEEL-1A experiment in the ATR will begin in April 2024 to achieve burnup targets of up to 60 GWd/T. As each planned burn-up target is achieved, the test capsules containing irradiated ANEEL pellets will be sent to INL’s Materials and Fuels Complex for destructive and non-destructive post-irradiation examination (PIE).

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DOE Study – Coal to Nuclear – Shows Benefits to Communities

• DOE Releases Information Guide for Communities Exploring Coal-to-Nuclear Transitions

• DOE Study Finds Replacing Coal Plants with Nuclear Plants Could Bring Hundreds More Local Jobs and Millions in Added Income and Revenue to Energy Communities

The U.S. Department of Energy (DOE) released an information guide for communities considering replacing their retired or retiring coal power plants with nuclear power plants. The guide is based on a technical study that found transitioning from a coal plant to a nuclear one would create additional higher paying jobs at the plant, create hundreds of additional jobs locally, and spur millions of dollars in increased revenues and economic activity in the host community. Importantly, it also found that, with planning and support for training, most workers at an existing coal plant should be able to transition to work at a replacement nuclear plant.

Coal-to-nuclear transitions could dramatically increase the supply of reliable, clean electricity to the grid and make progress toward the nation’s goal of net-zero emissions by 2050.

“As we work to transition to a net-zero economy, it’s absolutely essential that we provide resources to energy communities and coal workers who have helped our nation’s energy system for decades,” said Assistant Secretary for Nuclear Energy Dr. Kathryn Huff.

This information guide builds on DOE’s 2022 study that found hundreds of U.S. coal power plant sites across the country could be converted to nuclear power plant sites. DOE’s information guide offers communities a high-level look at the economic impacts, workforce transition considerations, and policy and funding information relevant to a coal-to-nuclear transition. It also provides utilities a brief overview of considerations to be aware of such as power requirements, project scope and timeline, and infrastructure reuse.

Read more about DOE’s work to support coal-to-nuclear transitions here. This information guide is a companion piece to DOE’s Stakeholder Guidebook for Coal-to-Nuclear Conversions. Readers can refer to this guidebook for an in-depth, technical analysis of topics covered in the information guide.

Considerations for Coal to Nuclear Conversion

According to a report published by the Idaho National Laboratory, the opportunity to replace a CPP with a NPP is becoming more attractive as replacing carbon producing power plants is becoming a priority for utilities, regulators, and the general public. The new nuclear-reactor designs are well suited to replace CPPs and take advantage of existing power-plant site infrastructure. Beyond technical benefits, a new power plant would continue local-community benefits in terms of jobs, tax bases, and grid operation.

The replacement of a CPP with a NPP is a significant undertaking. Technology and regulation issues affect what is possible for a CPP-to-NPP transition. Additional non-technical factors to consider include

• Quality and value of the current connection to the grid
• Inherent value of the land
• Ability and desirability of the CPP being retired
• Condition and understanding of the site environmentally
• Suitability of the site to host a nuclear power plant
• Shared project engineering experience with coal and nuclear power
• Ownership expectations for the site
• Community support for the CPP to NPP transition
• Transport infrastructure from barge, rail lines and heavy haul roads.

An evaluation of all these factors is complex and dependent on the features of a particular CPP and the replacement NPP.

Citation

George Griffith, Engineer/Manager at Battelle Energy Alliance
Transitioning Coal Power
Plants to Nuclear Power
INL/EXT-21-65372  December 2021

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