Nuclear energy remains the key: Not just to unlocking a cleaner, more secure future, but satisfying demand, powering progress, and improving the lives of people around the world.
The reason behind this race toward nuclear is simple: The world needs more power, and we need it sooner than projected.
One thing Vogtle has taught us: with every new unit, we learn something new. The construction gets more efficient, the costs get more reasonable. The risks decrease, the benefits increase.
Transcript
Hello, and welcome to the 2024 Nuclear Energy Policy Forum!
Let me begin today with some gratitude.
First, thank you to our sponsor, Constellation, for helping to make this event possible.
Thank you to our staff, our board, and our members for your commitment to the work we all do.
And, of course, thank you to everyone joining us in the room and online today.
We are living in dynamic times.
Over the past several years, the energy sector has seen the emergence—and convergence—of two priorities:
The need to decarbonize, and the need to achieve greater energy independence and security.
The past year has brought another dimension: Projections for an overwhelming increase in energy demand.
Last year, grid planners nearly doubled the 5-year load growth forecast.
A recent study from Grid Strategies predicts the grid will need to add 38 GW, or more, of new electricity during the next five years, driven by advanced computing, artificial intelligence, and the electrification of the manufacturing and transportation sectors.
The question is: how do we meet that demand while continuing to decarbonize and reach greater energy independence?
I am proud to say that nuclear energy remains the key:
Not just to unlocking a cleaner, more secure future, but satisfying demand, powering progress, and improving the lives of people around the world.
The good news is that while so much has changed since my last state of the industry address, one thing hasn’t:
The United States still boasts the highest performing nuclear reactor fleet in the world.
Our fleet runs efficiently.
It operates safely.
And it produces reliably—in the face of more extreme weather conditions and increasing demand.
Now, utilities are extending the lives of some plants to 80 years and taking steps to restart others, like Holtec’s Palisades Plant in Michigan.
And in California, the Department of Energy reached an agreement with PG&E to support extending operations of Diablo Canyon.
Since my last speech, we’ve seen significant progress in the industry.
I want to take a moment to celebrate the first advanced reactors on American soil.
In Georgia, Plant Vogtle’s Unit 3 and Unit 4 have entered commercial operation.
As I speak, these Westinghouse AP 1000 reactors are generating safe, reliable, clean power for more than 1 million homes and businesses.
With every carbon-free kilowatt, the project not only strengthens the case for nuclear energy—it solidifies its commercial viability.
This is more than a win.
It's a watershed moment.
And it won’t be the last.
So, let’s take a moment to give everyone involved in the completion of Project Vogtle a round of applause.
You all made history!
A few months ago, I attended a conference where Tom Fanning, the former executive chairman of Vogtle’s owner Southern Company, spoke.
He made an important point: Building nuclear is a challenge.
Today, we are rising to the challenge.
And we are doing just that – rising to that challenge.
Over the last 12 months, we’ve advanced more applications through the regulatory process.
Kairos Power saw movement on two fronts: Its Hermes construction application was approved.
Now, they are already making progress on a second application for the next generation Hermes reactor.
The NRC accepted NuScale’s VOYAGR 6-module design application.
And TerraPower submitted a construction permit application for its Kemmerer, Wyoming plant and plans to break ground just a few weeks from now.
At the same time, the major employer in town—a coal plant—is planning to decommission, potentially threatening jobs and even the community.
Once operational, TerraPower’s plant is expected to put people back to work.
Already, investment is flowing into the region in anticipation.
We’ve put more shovels in the ground, too.
In Texas, Abilene Christian University has started building a center for its research test reactor as its application is being reviewed by the NRC.
In Canada, Ontario Power Generation began site preparation for North America’s first-ever small modular reactor plant.
There is so much to celebrate.
And the truth is: this is just the beginning.
These headlines from the past year are part of a much larger and much longer trendline.
At every level of society—across borders and aisles and industries and sectors—support for nuclear has materialized into demand.
And the race to realize its potential is officially underway.
Geopolitical conflicts and climate commitments have forced nations to see nuclear with new eyes.
They’ve gone from soft-pedaling—or, in some cases, flat-out decelerating—nuclear energy initiatives to ramping them up.
This shift is staggering, and I’ve witnessed it firsthand as I’ve traveled the world.
Just a couple years ago, do you know what leaders at COP—the most important global climate conference in the world—were saying about nuclear?
Not much.
We worked hard to ensure nuclear was a part of the global climate conversation.
And last year at COP28, 25 countries pledged to triple nuclear power by 2050.
Some even called the conference “the nuclear COP.”
Beyond the pledge, countries around the world are already taking action.
Poland began initial site work for its very first nuclear power plant.
The Netherlands reversed course with a further life extension for their operating plant and plans for new construction.
India raised ambitions for nuclear generation capacity and in an important policy shift, is seeking private sector participation in development to help accelerate this growth.
The Philippines is starting a nuclear power program, signed a nuclear cooperation agreement with the U.S., and is taking significant steps toward deployment in the 2032 timeframe.
And the momentum on the world stage isn’t slowing down.
While I was attending the first-ever Nuclear Energy Summit for heads of state, the President of the European Commission, Ursula von der Leyen, a former German government official, stated that she believes that nuclear can play an important role in clean energy transitions.
John Podesta, President Biden’s senior advisor for clean energy, also made big news at that meeting: He indicated that the U.S. would join France and other countries in encouraging the World Bank to eliminate restrictions on nuclear funding.
And policymakers in the United States are working to ensure America can win the race on nuclear.
While Democrats and Republicans can’t agree on much, they agree that nuclear is the key to both national security and global competitiveness.
Other nations need nuclear energy.
They want to do business with us.
They trust us, and they recognize the outstanding operation of our fleet.
Because when we export American nuclear, we export American standards—the highest standards in the world.
Last year, NEI hosted meetings with more than 20 countries interested in cooperating with the U.S. with strong interest in our nuclear technologies.
I also had the opportunity to attend the first-ever US-Africa Nuclear Energy Summit in Accra.
Since then, Ghana has announced they will select nuclear vendors by the end of the year.
Other countries will be sure to follow.
In fact, in a few weeks, I will lead a trade mission of our member companies to Sweden and Finland.
In this moment, we can’t continue to power our country—let alone the world—on the back of Russian uranium.
Re-shoring fuel production to American soil is imperative for our future.
Today, I am happy to report that we are one step closer to making this long-held goal a reality: Lawmakers recently approved $2.72 billion in funding to support a domestic fuel supply and make our nation stronger.
And just a few weeks ago, as a condition of this funding, Congress passed a ban on Russian uranium fuel imports and President Biden signed it into law yesterday.
To that end, we are focused on two things: Work with the Department of Energy to ensure this funding builds a competitive domestic supply chain and revitalizes U.S. capabilities to convert and enrich uranium.
We must also ensure the waiver process is predictable and efficient.
Thankfully, we are beginning to see some progress.
Urenco approved its first expansion project last year at its plant in New Mexico.
Orano’s Board of Directors approved a $1.8 billion investment to increase enrichment capacity.
Global Laser Enrichment is on track to demonstrate its novel technology this year.
ConverDyn, the only converter in the U.S., announced the restart of its plant last year.
And Centrus started production of High-Assay Low-Enriched Uranium in October 2023—becoming the first new U.S.-owned uranium enrichment plant to begin production since 1954.
Advanced fuel technologies will be deployed over the next few years with enhanced accident tolerant features, increased enrichments, and higher fuel efficiencies enabling power upgrades and longer cycles.
Of course, to assume the mantle of energy leadership, domestic fuel production is just one part of the equation.
We must also accelerate advanced nuclear development and extend the life of current reactors.
Fortunately, here too, lawmakers are backing up their words with action.
In addition to the $2.72 billion for a domestic fuel supply, this year Congress, with bipartisan support, approved a 40-year extension of a critical nuclear insurance program and passed $800 million to fund a competitive grant program for advanced nuclear.
This past year was also a historic year in state legislatures.
Twenty states took action to support nuclear energy.
Never before have we seen so many move to support nuclear—and with such commitment.
Today, they’re competing to be the next nuclear hub.
Virginia finalized incentives for new nuclear in its desire to become a national—and global—leader.
Michigan and Minnesota passed ambitious clean energy plans that include nuclear assets.
Washington state allocated $25 million for Energy Northwest to support their new clean energy investments.
Tennessee announced the Governor’s nuclear advisory council, and has increased its investment in nuclear supply chain companies with the goal of becoming a world leader.
And Kentucky created a permanent authority to oversee deployment and administration of nuclear.
Red states, blue states, purple states—they are all coming together to protect existing nuclear and prepare for next-generation deployment.
We’re also seeing more engagement from state public utility commissions on nuclear policies.
At the same time, companies in the private sector are increasing their investments and doing what they can to gain an edge.
Nuclear-related financing is growing.
Électricité de France announced the sale of Europe’s first green bond of nuclear energy last fall.
Ontario issued the first provincial green bond for nuclear in Canada.
And just a few weeks ago, Constellation Energy offered the first green bond in the United States to finance nuclear energy projects.
Nuclear-related acquisitions and public offerings are up.
Westinghouse Electric Company was acquired by Brookfield and Cameco in order to better compete as demand for nuclear grows.
Two microreactor companies just went public this year.
Nano nuclear completed an IPO, while Oklo, which is backed by Open AI founder Sam Altman, utilized a SPAC.
Companies are making big moves to deploy nuclear, too.
Equinix, the world’s largest digital infrastructure company, has just agreed to purchase 500 megawatts of power from Oklo.
Microsoft, Google, and Nucor just launched a joint initiative to develop new business models and aggregate their demand for advanced clean electricity technologies, accelerating the development of advanced nuclear.
But the tech industry isn’t just waiting for the next generation of nuclear to be built.
Amazon Web Services recently purchased a nuclear-powered data center campus from Talen Energy.
And New Jersey’s utility company, PSEG, announced this month that they are in talks to power data centers with existing nuclear reactors.
These companies are sending a clear signal to the marketplace: demand for carbon-free power technologies—specifically nuclear—is strong and growing.
It is exciting to see how the energy industry is using the clean energy transition to forge new business models.
Recently, for instance, NOV, a global energy services firm, formed its own nuclear venture called Shepherd Power to supply the oil and gas sector with clean heat and power at scale.
And I mean scale: They’re not talking about building one or two microreactors.
They’re talking about ramping up to several hundred after 2030.
NEI is working with Shepherd Power on ways that the regulatory structure can be adapted to significantly reduce the amount of time it takes to license these very small microreactors.
And I mean significantly reduce: from an average of five years per application to just four months.
All while maintaining the highest safety standards.
This can be done through several changes that recognize the small size and output of microreactors – from emergency protection zones measured in feet rather than miles to incorporating learning from the regulatory approach used for research reactors that have safely operated on college campuses across the U.S. for decades.
But the implications of these changes to the NRC regulatory structure can have an even larger impact.
A shift in the paradigm will have benefits for SMRs and large reactors too.
The reason behind this race toward nuclear is simple: The world needs more power, and we need it sooner than projected.
Today, artificial intelligence is shattering expectations.
ChatGPT became the first application ever to reach 100 million users in two months.
Now, companies are expanding their data centers to increase their computing power and accommodate generative AI’s increasing capabilities.
Our existing fleet, working with future advanced technologies, is critical to help meet this moment.
Today, decarbonization is a global non-negotiable.
Industries need more power—more clean power—to reach their net zero goals.
This means extending the licenses of the current operating fleet and adding to it.
Today, energy security is national security.
As I mentioned earlier, nations around the world have growing populations with growing electricity needs.
We need to help these nations access more power—and build more clean, affordable power systems.
Fortunately, we know there is one source up to the task.
One source that checks all the boxes: Nuclear.
Friends, the state of our industry is strong.
Demand is high.
Support is growing.
Dirt is moving.
And more progress is coming.
Over the next 12 months:
Three or more applications are expected to be submitted to the NRC for advanced reactors.
Two or more advanced reactor projects are expected to begin construction.
The Canadian Nuclear Safety Commission is likely to approve the construction permit for the GE BWR X-300 at Ontario's Darlington site.
In addition to the 12 submittals for 20-year license renewals, one more plant will be added to this growing list and will submit their renewal to the NRC this year.
Several utilities are preparing numerous power uprates with a cumulative capacity increase of approximately 2.5GWe of new carbon-free generation, the equivalent of more than two large light-water-reactors.
And don’t be surprised when you see large reactors showing up in U.S. utilities’ integrated resource plans in the near future, like we have already seen in Canada.
But what we do now—and how we do it—will determine what our industry—and our world—looks like in the future.
First, we need to ensure we help early movers…move.
I’ll state the obvious.
It’s hard to lead the pack, and it takes more than just courage.
We need incentives, grants, and cost mitigation to make it easier to take the leap.
One thing Vogtle has taught us: with every new unit, we learn something.
The construction gets more efficient, the costs come down.
The risks decrease, the benefits increase.
That’s why we are working with Congress to support an early movers policy to bridge the cost hurdles associated with first-of-a-kind technology.
Just as important, we are working to protect the critical incentives Congress has already provided, as we push for timely guidance on these tax credits to support next-generation nuclear and the current fleet.
We are also working to ensure guidance on the hydrogen tax credits includes the existing nuclear fleet, so we can enhance the development of a robust hydrogen economy with the nuclear power plants we already have.
Next, to realize the gains we’re making, we need regulators to devote their energy to safety and eliminate unnecessary processes.
Over the past few years, the NRC has taken some important steps in this direction.
For example, NRC staff have made changes to the license renewal application review process that have saved thousands of unnecessary hours and shortened the schedule by months.
Kairos Power’s construction permit application, for example, was completed in record time.
In both of these cases, the improvements are notable, but we need to continue moving in this direction because the demand on the NRC is only going to increase.
Just consider this:
We asked our members, and more than 90% of our industry has said they anticipate operating for at least 80 years.
This means that a third of our existing fleet will submit license renewal applications in the next 5 years.
We also know that the pace of siting and licensing applications will grow.
The Commission has been revising its Part 53 guidance, addressing many of the concerns the industry raised, but there is still opportunity to streamline.
I want to share a recent quote from NRC Chair Chris Hanson.
“I expect every leader in the NRC to look closely at the ‘why’ of our policies, processes, and procedures and then develop more efficient and effective ways to accomplish our safety mission while making room for the increased scope of work.”
I’m grateful for the Chair’s comments and for the NRC’s commitment to reform.
As he notes: Efficiency and safety are not mutually exclusive.
We can achieve both.
But realizing this vision requires just as much of a shift in culture as it does in process.
The NRC is on a journey to make meaningful change, and we need to continue to support and encourage that journey.
Regulatory modernization isn’t the only place where we need to focus.
We also need to build out a safe, secure, and resilient supply chain.
So, if you’re a lawmaker, start incentivizing action.
And if you’re a business leader, start pushing for it.
We also need to train a workforce…as soon as possible.
The Department of Energy projects that we’ll need 375,000 workers by 2050 just to manufacture, construct, and operate advanced reactors.
This workforce includes a broad spectrum of workers from the skilled trades, to engineers and technical staff, to all other roles that it takes to make these facilities a success.
But filling those jobs will require proactive expansion of apprenticeships, vocational schools, and university programs.
I’m calling on everyone here to spread the word.
Talk to high school students.
Visit colleges and universities.
Wherever you’re recruiting, make sure people know: Nuclear jobs are high-quality, long-term jobs.
Which brings me to my last point: We have to make it happen.
Demand for energy will only keep growing.
And there is only one solution on the market that can provide clean energy for 60, 80, 100 years.
Truly, there has never been a more exciting moment for our industry.
It reminds me of something Steve Jobs said back in the 1980s.
He believed, rightly, that personal computing would transform the world.
And he wanted to find people who were excited by that vision, or in his own words:
People who desired to “make a dent in the universe.”
That feeling—that sense of possibility and excitement—is palpable in nuclear right now.
We’re like Detroit at the beginning of the 20th century.
Or Silicon Valley at the end of it.
We’re on the ground floor going up fast.
That’s why it’s good to see so many of the people in this room who are committed to nuclear.
You are helping shape the industry that is shaping the world’s future.
So, thank you for all the work you’ve done so far.
And together, let’s make a dent in the universe.
Thank you.
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$6.58 Sentiment: Buy Disclosure: Held
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