Nuclear fallout: Scrapped reactors and Manchin’s move

This artist’s rendering shows a prospective NuScale Power small modular nuclear reactor site. | Business Wire/AP

Today, Power Switch is bringing two big stories to readers — one on nuclear power and the other a political bombshell.

A highly anticipated advanced nuclear energy project was scrapped this week, signaling that the technology may have a rocky future despite billions of dollars in federal investment.

NuScale Power and a group of local electric utilities announced on Wednesday that they’re abandoning plans to build six first-of-a-kind modular reactors near Idaho Falls, Idaho, writes Zach Bright. The project was set to receive as much as $1.4 billion from the Department of Energy — in a so-called cost-share deal — but couldn’t attract enough power subscribers.

Small, factory-built reactors have long been touted as a possible lifeline for the nation’s aging nuclear sector and a carbon-free way to replace retiring coal-fired power plants. But some experts have questioned whether the industry can grow fast enough to curb power emissions.

“It could be seen as another notch towards the idea of ‘this is a bit more hype than reality,’” said Eric Gimon, a senior fellow for energy think tank Energy Innovation. Electricity from the NuScale reactors, he said, was ultimately too costly for local utilities.

Despite the setback, advanced reactors continue to have strong support, offering a rare middle ground for Republican nuclear boosters and climate-minded Democrats.

“This was never going to be easy. Should we be concerned? Sure,” said Sen. Martin Heinrich (D-N.M.). “We also need to realize that we need to innovate in this space and not all the startups are gonna make it.”

But trouble is brewing on Capitol Hill for advanced reactors, writes Nico Portuondo. A Senate-passed bill to boost the technology — by reducing licensing fees and offering incentives — could get blocked by House Republicans who object to the bill hitching a ride on the National Defense Authorization Act.

‘Bump in the road’

The NuScale project was originally scheduled to be operational by 2026. But cost overruns and delays spooked utilities, prompting several to withdraw from a 2019 agreement to buy power from the reactors once completed.

The Department of Energy has so far invested $232 million into the project and plans to take ownership of both data and equipment to recoup much of that investment, said DOE senior official Alice Caponiti. She emphasized that the agency “remains committed to doing everything we can to deploy these technologies to combat the climate crisis.”

Josh Freed, the head of climate and energy at Third Way, a center-left think tank, said the project’s failure is merely a “bump in the road” for small modular reactors given that the technology is being developed on a global scale.

“It only raises the question of whether it is U.S. companies and the U.S. government support that deploys small modular advanced nuclear globally or whether it’s authoritarian regimes like China and Russia,” said Freed.

Although small modular reactors aren’t baked into near-term climate goals, they could be critical for achieving the Biden administration’s goal of a carbon-free electricity grid by 2035. Experts say some form of “dispatchable” energy — like nuclear, long-duration energy storage or hydrogen — is needed to fully decarbonize the grid.

It’s Thursday — thank you for tuning in to POLITICO’s Power Switch. I’m your host, Hannah Northey. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to [email protected].

A message from bp:

bp added more than $70 billion to the US economy last year. We did it by making investments from coast to coast – like acquiring America’s largest biogas producer, Archaea Energy, AND producing natural gas with fewer operational emissions in the Permian Basin. See how else bp is investing in America.

Today in POLITICO Energy’s podcast: Marie French and Ry Rivard break down the pressure on New York to rescue President Joe Biden’s offshore wind plans after an ambitious project was canceled in New Jersey.

Sen. Joe Manchin (D-W.Va.) speaks with reporters as he departs a vote at the U.S. Capitol on Nov. 6. Manchin announced Thursday that he would not be running for reelection in West Virginia. | Francis Chung/POLITICO

Sen. Joe Manchin (D-W.Va.) announced today he will not be seeking reelection, a move that shifts the calculus for Democrats hoping to keep their slim majority in the Senate. West Virginia is a deep-red, coal-heavy state.

As a centrist figure in the Democratic Party, Manchin has shaped energy and climate policies since Biden came to office by threatening to withhold support for progressive measures. The White House has tangled with Manchin over implementation of last year’s Inflation Reduction Act, which included record U.S. spending on clean energy technology to replace coal and oil.

Sierra Club Executive Director Ben Jealous arrives for an interview at the Sierra Club’s offices in Washington, D.C., on Oct. 26. | Francis Chung/POLITICO

Not a pretty pictureSierra Club employees were thrilled when Ben Jealous was hired to lead them. Eight months in, they’re furious, Robin Bravender writes.

Jealous has faced searing criticism since announcing layoffs across the iconic environmental group, including laying off the group’s entire equity team. But Jealous is unapologetic about the moves to reorganize, and he blames the Progressive Workers Union, which represents Sierra Club staffers, for internal fights spilling out into public view and drawing media attention.

The Dobbs effectA GOP tactic to counter Democrats’ advantage on abortion by hammering away at liberal climate policies came up short in Tuesday’s election, Adam Aton and Benjamin Storrow report.

Democrats have scored big wins in state after state since the Supreme Court overturned Roe v. Wade last year. Even on friendly terrain — in Virginia, Kentucky and parts of New Jersey — Republicans failed to offset voter pushback against the Dobbs decision by attacking offshore wind, electric cars or “radical environmentalists.”

A message from bp:

Timber time: Tall, knot-free trees are in high demand for utility poles that are needed to build out the power grid.

Market failure: Sales of heat pumps that can heat and cool homes more efficiently than gas furnaces and air conditioners are slowing down partly because of the slow rollout of federal incentives.

A message from bp:

bp supports more than 275,000 US jobs. Jobs keeping oil and gas flowing AND developing more lower carbon energy. It’s and, not or. See what doing both means for energy nationwide.

A showcase of some of our best subscriber content.

A Rice’s whale in the Gulf of Mexico. | U.S. Marine Mammal Commission

Biden and the Rice’s whale are to blame for high gasoline prices, according to Republicans and conservative groups paying for commercials and online ads attacking proposed protections for the endangered mammal in the Gulf of Mexico.

Large swaths of the eastern U.S.will have tighter energy supplies this winter, putting the areas at increased risk of power outages if severe storms hit.

New Jersey Democrats are eyeing sweeping environment and energy policies after picking up seats in the state Assembly and keeping the Senate.

That’s it for today, folks! Thanks for reading.