A Bright Future for Nuclear Energy in the U.S.
Momentum for nuclear energy development is gaining speed around the world with many dynamics at play. Looking to our network of energy experts and enthusiasts, we recently convened an expert panel, in partnership with Pillsbury Winthrop Shaw Pittman LLP (Pillsbury) and the Women’s Council on Energy and the Environment (WCEE), incorporating industry, legal, and non-profit perspectives to discuss what is in store for nuclear energy in the U.S.
Featured in the expert panel were:
- Elina Teplinsky, Global Leader of Energy Industry group and a leader of its International Nuclear Projects and Hydrogen teams, Pillsbury
- Jackie Toth, Deputy Director and Board Secretary, Good Energy Collective
- Jackie Carney, Director of Federal Government Affairs, Constellation
The discussion spanned a wide range of issues, from new policy support for the industry to international competitiveness and the growth of small modular reactors (SMRs). Here are some key takeaways from the panel discussion on what these experts think is next for nuclear energy:
Don’t call it a comeback: Nuclear is experiencing a fresh look as we have more serious discussions about climate and energy security. The facts about nuclear have not changed — e., emission free, reliable — but there is now broad consensus that we need more solutions for climate change, not less. This is opening the door to greater support for nuclear. In fact, there is now majority support for nuclear power (57%) in the U.S.,[i] the highest in a decade, but it’s also notable that it is still only in the mid-50s. Moreover, federal policy support has been instrumental in making the current environment different from the past, including laws like the Bipartisan Infrastructure Law, the CHIPS Act, and the Inflation Reduction Act. There is also growing interest in using nuclear outside of the traditional utility context, including recent partnerships to decarbonize heavy industry.
Global competitiveness looms large: China and Russia are doing considerably more to build domestic nuclear power capacity and, in Russia’s case especially, dominate international supply chains. Other governments are also providing significant direct support to grow their nuclear fleets. To compete and regain its leadership role, the U.S. needs to make investments in its own industry and supply chains (e.g., uranium conversion and enrichment). But the U.S. also needs to establish equitable processes for siting nuclear infrastructure, including uranium processing, to account for past mistakes. With that said, communities that host nuclear plants maintain strong support for the industry. In fact, communities are competing for new SMR projects and have asked for developers to “pick them” because they want the jobs and opportunities.
Reality check for cost concerns: Nuclear facilities get a bad rap for cost overruns, but that’s because they are transparent about every delay and cost increase. Any large infrastructure project faces similar issues, including other major energy sources. SMRs are designed to reduce construction risk, allowing the production of modules in factories that will be transported and installed at sites. Nuclear also faces significant licensing challenges that other sources do not, as well as a regulatory regime that accepts far less risk than agencies that govern other energy sources.
Hope for hydrogen: Hydrogen can play huge role in securing the future of nuclear, and nuclear can also play a major role in the future of hydrogen. Industry views hydrogen as an integral, long-term part of its business. The Inflation Reduction Act includes key provisions to incentivize hydrogen production from nuclear. However, it’s imperative that forthcoming guidance on implementing the rules remains practical and enables the scale-up necessary to meet U.S. climate and economic goals.
Policy support is key: Changes are needed and are underway at the Nuclear Regulatory Commission, but the National Environmental Policy Act is also necessary if we are to expand U.S. nuclear capacity and its associated infrastructure. Current licensing regulations are designed for large light water reactors, but need to evolve and accommodate SMRs and advanced reactors that have fundamental differences from the existing fleet. Nuclear energy has received a significant amount of financial support in recent legislation, but a holistic all-of-government approach is needed to address some of the remaining technology demonstration, regulatory and market challenges. This approach would allow nuclear energy to scale at the pace needed to address climate change mitigation and energy security goals.
To learn more about FTI’s Nuclear Energy practice, please visit: https://bit.ly/FTInuclear
[1] Brian Kennedy, Cary Funk and Alec Tyson, “1. What Americans think about an energy transition from fossil fuels to renewables,” Pew Research Center (June 28, 2023), https://www.pewresearch.org/science/2023/06/28/what-americans-think-about-an-energy-transition-from-fossil-fuels-to-renewables/.
The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals.
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