A New Era for Nuclear Energy

In a significant move towards a more sustainable future, the General Services Administration (GSA) has announced a major nuclear energy contract worth $840 million over 10 years. This historic deal marks a new era for nuclear energy in the United States and is part of a growing trend among big tech companies to invest in nuclear power.

The Contract Details

The GSA has awarded the contract to Constellation, which operates the nation’s largest nuclear fleet. Under this agreement, Constellation will provide 10 million megawatt-hours of electricity over 10 years, equivalent to powering more than 1 million homes annually. Nuclear energy makes up approximately 4 million megawatt-hours of this total.

The Significance of the Deal

This contract is significant for several reasons:

  • Carbon-Free Energy: Constellation generates 10 percent of the nation’s carbon pollution-free energy, with a majority coming from nuclear power.
  • Reliable and Affordable Power: This deal provides federal agencies with budgetary stability and protections from future price increases by keeping electricity costs fixed for 10 years.
  • Investment in Nuclear Energy: The contract will allow Constellation to extend licenses for existing nuclear power plants, invest in new equipment and technology, resulting in an additional 135 megawatts of capacity.

A Growing Trend Among Tech Companies

Several big tech companies have made significant investments in nuclear energy over the past year:

  • Microsoft and Constellation: Announced a plan to restart a shuttered reactor at Three Mile Island in Pennsylvania.
  • Google, Meta, Amazon, and Microsoft: Have all inked splashy nuclear energy deals.

The Biden Administration’s Commitment to Nuclear Energy

The Biden administration has made nuclear energy a key part of its plan to transition the US away from fossil fuels. The Department of Energy announced a $1.52 billion loan in October last year to help restart a retired nuclear generating station in Covert Township, Michigan.

Conclusion

This historic contract is a significant step towards a more sustainable future for the United States. By investing in nuclear energy, federal agencies and big tech companies can reduce their carbon footprint while ensuring a reliable supply of clean energy.

Additional Details

  • The contract will also extend to 13 other agencies, including the departments of Veterans Affairs and Transportation.
  • Constellation has set a goal of reaching 100 percent carbon-free electricity by 2040 compared to close to 90 percent today.
  • The deal demonstrates how the federal government can join major corporate clean energy buyers in spurring new nuclear energy capacity.

Key Players

  • General Services Administration (GSA): Awarded the $840 million contract to Constellation.
  • Constellation: Operates the nation’s largest nuclear fleet and has set a goal of reaching 100 percent carbon-free electricity by 2040.
  • Microsoft: Has inked a deal with Constellation to restart a shuttered reactor at Three Mile Island.

What This Means for the Future

This contract marks a significant shift in the way federal agencies approach energy procurement. By investing in nuclear energy, they can reduce their carbon footprint while ensuring a reliable supply of clean energy. This trend is expected to continue as more companies and organizations recognize the importance of nuclear power in achieving a sustainable future.

Sources

  • "GSA Awards $840 Million Contract for Nuclear Energy"
  • "Constellation Announces Plan with Microsoft to Restart Three Mile Island Reactor"
  • "Department of Energy Announces $1.52 Billion Loan for Nuclear Generating Station"