In the U.S., two companies are seeking funding to maintain ailing nuclear plants.
Applications for funding
In the U.S., both companies are awaiting word from the U.S. Department of Energy (DoE) by the end of the year. PG&E Corp and Holtec International are applying for the first phase of the civil nuclear credit program. The DoE’s funding capacity is $6 billion.
In the United States, the Biden administration believes that nuclear power is essential to fighting climate change. However, the plants are struggling with costs and competition from natural gas plants. PG&E’s Diablo Canyon reactors in California are scheduled to close in 2024 and 2025.
A uranium deficit
However, if the U.S. DoE provides the funding, the reactors would remain open. As such, the electric utility PG&E expects a final decision by the end of the year. In addition, the company says it is applying to the Nuclear Regulatory Commission for a license to allow Diablo to continue operating.
In addition, PG&E is also ordering more uranium for the reactor. In addition, the company also purchases drums for the storage of nuclear waste. The company says there have been constraints on access to uranium since the Russian-Ukrainian conflict began.
An expected decision
Holtec purchased the Palisades nuclear power plant in Michigan in May to dismantle the facility. The company says that if it were to obtain funding in the United States, it could reactivate Palisades. Thus, the nuclear power plant would be operational until a next generation of small modular reactors.
Palisades is out of nuclear fuel. In addition, the nuclear power plant has to solve some technical problems. Thus, the plant may need a new company to operate it and a buyer for the electricity it generates.
