US Energy, Infrastructure, and Resources Alert
By Thomas G. Allen, Tim L. Peckinpaugh, Martha G. Pugh,
Jasper G. Noble, K&L Gates
The nuclear energy industry continues to gain momentum and has a strong outlook for 2025 and beyond. This positive forecast is buoyed by support from both major political parties, increased demand, technical advancements, and some out-of-the-box thinking for deploying existing assets. There have also been a few notable judicial and legislative developments that are contributing to what some hope will be the realization of a long-promised nuclear renaissance.
Outlook for 2025 and Beyond
The new year is already off to a good start for nuclear power generation.
Expansion of the Price-Anderson Act
First, the US Court of Appeals for the Federal Circuit recently advanced a broad interpretation of the Price-Anderson Act that will expand the definition of private parties covered for certain nuclear accidents. This positive development broadens who can take advantage of government indemnification under the Price-Anderson Act, encouraging new parties to participate in the nuclear market. We wrote about this development and its impact on limiting private liability for nuclear accidents here.
Nuclear Market Growth
Second, a dynamic nuclear market appears to be taking root. As Nuclear Business Platform reports: (1) small modular reactors (SMRs) should lead the way in 2025, with several designs under development and NuScale Power Corporation achieving US Nuclear Regulatory Commission (NRC) certification; (2) increased demand from data centers and artificial intelligence should continue to drive new generation; (3) a positive financing environment for nuclear projects also appears to be in place; (4) new technology developments in both reactors and fuels from a variety of private market players should support further growth; and (5) new market participants in India, Turkey, and Africa will also support continued advancements and efficiencies.
Nuclear-Powered Hydrogen
Third, the US nuclear industry continues to evaluate opportunities for using nuclear fuel as an electricity source to produce hydrogen following the US Department of the Treasury’s final changes to the 45V clean hydrogen production tax credit, which exempt (with some restrictions) existing and future nuclear power plants from the additionality requirements imposed on other renewable energy sources. US nuclear leaders, along with EDF Energy’s initiatives in France and Japan’s High Temperature Engineering Test Reactor, could carve out a new generation space.
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