Wedoany.com Report-Dec.4, The U.S. Department of Energy has selected the Tennessee Valley Authority and Holtec to each receive $400 million in federal cost-shared funding to support the early deployment of advanced light-water small modular reactors in the United States.

The selections, announced on December 2, 2025, advance initial Generation III+ SMR projects in Tennessee and Michigan, while facilitating follow-on developments and strengthening domestic supply chains. The initiative stems from a $900 million solicitation reissued in March 2025 to support the deployment of these reactors, which use light water as coolant and low-enriched uranium fuel, with single-unit capacities of 50–350 MWe. The designs emphasise factory fabrication and enhanced safety, security, and environmental performance compared to traditional large-scale nuclear plants.

The Department of Energy stated: "The selections announced today will help deliver new nuclear generation in the early 2030s, strengthen domestic supply chains, and advance President Trump's Executive Orders to usher in a nuclear renaissance and expand America's Energy Dominance agenda."

U.S. Secretary of Energy Chris Wright noted: "President Trump has made clear that America is going to build more energy, not less, and nuclear is central to that mission. 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. These awards ensure we can deploy these reactors as soon as possible."

The Tennessee Valley Authority's project focuses on deploying a GE Vernova Hitachi BWRX-300 SMR at the Clinch River Nuclear site in East Tennessee. TVA, which applied in April 2025 with a coalition of partners, also plans to accelerate additional units in collaboration with Indiana Michigan Power and Elementl. Key supply chain partners include Scot Forge, North American Forgemasters, BWX Technologies, and Aecon, alongside supporters such as Duke Energy, Oak Ridge Associated Universities, and the Electric Power Research Institute. In May 2025, TVA submitted a construction permit application to the U.S. Nuclear Regulatory Commission, which is under review.

TVA President and CEO Don Moul said: "This award affirms TVA's continued leadership in shaping the nation's nuclear energy future. With DOE's support and the strength of our partners, we're accelerating the deployment of next-generation nuclear – reducing financial risk to consumers and strengthening US energy security. This is how we deliver reliable, affordable energy and real opportunity for American families."

TVA and the Department of Energy will now discuss project milestones and co-applicant awards.

Holtec's initiative involves deploying two SMR-300 reactors, named Pioneer 1 and 2, at the Palisades Nuclear Generating Station site in Covert, Michigan. The project adopts a comprehensive approach, with Holtec serving as technology provider, supply chain manager, plant constructor in partnership with Hyundai Engineering & Construction, operator, and electricity seller to local utilities and end-users. This multi-site model aims to establish a repeatable, fleet-scale framework to lower costs and shorten construction times through standardisation and manufacturing efficiencies, with operations targeted for the early 2030s.

Holtec CEO and Executive Chairman Kris Singh remarked: "Holtec realises the future of nuclear energy as a source of reliable baseload electricity to power the economy of the future is realised only if we, in the industry, make the reactors predictably cost competitive. With a well-exercised and proven supply chain, a world-class alliance partner, Hyundai E&C, and the plant design marinated with four decades of practical corporate experience, we consider it our duty to lead the industry in building, owning, and operating the first SMR-300 plant in the United States. We are energised by DOE's confidence in our SMR-300 reactor, which we view as validation of our 14-year quest to develop a walk-away-safe and cost-competitive nuclear reactor. This grant positions Holtec to accelerate deployment of a standardised SMR-300 fleet that strengthens US energy security and grid resilience and will further bolster Holtec as one of the largest US exporters of nuclear equipment."

The remaining $100 million in funding will be awarded later this year to address barriers in design, licensing, supply chain, and site preparation, supporting further SMR advancements.