Amazon and Google Bet on Small Modular Reactors for Clean Energy
SMRs Emerge as a Promising Solution for Reliable Power at Flexible Scale
Clint Wheelock , Managing Director, Canopy Edge
Recently, Amazon announced it was investing in nuclear energy, specifically small modular reactors (SMRs), as a form of clean energy to power data centers and other operations. This news comes just a few days after Google made a similar announcement, as both tech giants seek new sources of carbon-free electricity to meet surging demand from data centers and artificial intelligence (AI). Amazon has signed an agreement with the regional utility Energy Northwest in central Washington State to invest in developing four SMRs at its Columbia Generating Station in Richland, Washington. Energy Northwest would build, own, and operate these reactors, which would provide about 320 megawatts (MW) to start. The project would potentially increase to 12 reactors producing 960 MW, which would be enough electricity to power 770,000 homes, according to Amazon.
Google has agreed to purchase energy from SMRs under a deal that will support the first commercial deployment of Kairos Power’s reactor by 2030, and a fleet totaling 500 MW of capacity by 2035. Under the Master Plant Development Agreement signed by the two companies, Kairos Power will develop, construct, and operate a series of advanced reactor plants. Kairos Power will sell energy, ancillary services, and environmental attributes to Google under power purchase agreements (PPAs). The plants will supply clean electricity to Google data centers with the first deployment by 2030 to support Google’s 24/7 carbon-free energy and net zero goals. According to the two companies, this is the first corporate agreement for multiple deployments of a single advanced reactor design in the US.
Also notable is Microsoft’s recent announcement that it has signed a deal with Constellation Energy to restart a unit at the Three Mile Island nuclear plant in Pennsylvania, which was closed following a partial meltdown in 1979, with a goal of powering Microsoft’s data centers with carbon-free energy. Constellation plans to invest $1.6 billion to reactivate the plant, which will provide 835 MW of capacity, and Microsoft has committed to a 20-year PPA as part of the deal. While it is a different strategy from those of Amazon and Google with SMRs, the move demonstrates a strong interest among tech giants in nuclear energy to meet their growing data center power demands and sustainability goals.
Small Modular Reactors
SMRs are a type of nuclear reactor that is much smaller, and more flexible than traditional large-scale nuclear power plants. Typically one-tenth to one-quarter the size of traditional nuclear reactors, they generate up to 300 MW of electricity per unit. SMRs are designed to be built in factories and shipped to the final location. This makes them easier to deploy, and potentially reduces construction costs. In addition, SMRs have advanced safety systems that do not require external power or operator intervention to function in case of an accident.
Benefits of SMRs Versus Large, Conventional Reactors
While SMRs offer potential cost advantages, their initial development and deployment costs are still significant. There may also be public concerns about nuclear safety and waste disposal associated with SMRs, similar to that of traditional nuclear power. In addition, there is a need to develop a regulatory framework to oversee the design, construction, and operation of SMRs, which is a complex task. SMRs are still in the development and demonstration phase, but they hold promise as a potential solution for providing clean and reliable energy for various applications. They are being developed by a variety of public and private institutions worldwide. Here are some of the key players:
Public Institutions
Private Entities
US Military
The US Department of Defense (DOD) is exploring the potential of SMRs for various military applications. While all branches of the military could potentially benefit from SMR technology, the US Navy has shown interest due to its need for reliable, long-lasting power sources for its ships and submarines. The DOD is interested in SMRs for their potential to provide reliable, clean energy for military installations and operations. Along with the Department of Energy (DOE), the DOD is actively researching and developing SMR technologies to assess their feasibility and potential benefits for military applications. It is important to note that while the military is exploring SMRs, there has yet to be widespread adoption and deployment of the technology in military operations. Despite this, the potential benefits and ongoing research suggest that SMRs could play a significant role in shaping the future of military energy and power generation.
Summary and Conclusion
In recent developments, Amazon and Google have demonstrated a significant commitment to clean energy by investing in SMRs. These smaller, more flexible nuclear reactors offer a promising solution to meet the growing energy demands of data centers and other operations while reducing carbon emissions.
SMRs present several advantages over traditional large-scale nuclear reactors, including faster deployment, scalability, and lower environmental impact. However, challenges such as initial investment costs and public perception remain. As research and development continue, SMRs have the potential to become a valuable component of a diverse energy mix, providing reliable and clean power for both civilian and military applications. The involvement of major corporations and government agencies underscores the growing interest in this technology and its potential to shape the future of energy generation.