SMR

The U.S. intends to triple its nuclear generating capacity by 2050 to meet the expected growth in electricity demand and expand carbon-free power production. In a recently related roadmap to achieving that goal, the outgoing Biden administration said the U.S. aimed to have 35 gigawatts (GW) of new nuclear capacity either in operation or under construction by 2035. It also outlined the key roles that restarting previously shut reactors, uprating some facilities to produce more power and the development of microreactors could play in the years ahead. In today’s RBN blog, we’ll discuss the report’s key findings and recommendations and what they tell us about the future of U.S. nuclear power. 

There’s been a lot of discussion lately about the best way to meet the expected increases in U.S. power demand, driven in part by manufacturing growth and the rapid development of large-scale data centers. That has spurred a renewed interest among regulators, industry leaders and the general public in nuclear power. But while traditional reactors are known for their cost overruns and construction delays as much as the massive amounts of carbon-free power they produce, some see a better way forward in the form of small modular reactors (SMRs). Advocates with “uranium fever” say they can be built without many of the problems that accompany their larger cousins and offer a number of potential advantages, including siting flexibility, price and efficiency. In today’s RBN blog, we’ll look at the state of nuclear power in the U.S., examine the potential for SMRs, and discuss the hurdles they face to obtaining the necessary permits and ultimately beginning operation. 

Rising global interest in clean ammonia — plus the potential for earning generous federal tax credits — spurred a host of project announcements over the past couple of years, with the first new production capacity slated to start up as soon as 2025. But reality is setting in regarding the pace of clean-ammonia demand growth and the financial, regulatory and other challenges of developing complicated, big-dollar projects, particularly those involving carbon capture and sequestration (CCS). In today’s RBN blog, we provide an update on the major clean ammonia proposals we’ve been tracking. 

Clean ammonia, produced by reacting either “blue” or “green” hydrogen with nitrogen, is emerging as one of the most highly touted low-carbon energy sources of the future, thanks largely to massive tax incentives provided by the Inflation Reduction Act (IRA). Skeptics may question the extent to which clean ammonia — and clean hydrogen, on which it’s based — can realistically take market share from natural gas and coal as leading power-plant fuels over the next 20 to 30 years, but there’s a lot to be said for them and, as wind- and solar-power developers have already come to appreciate, billions of dollars in governmental support can do wonders. In today’s RBN blog, we continue our look at the growing list of U.S. clean ammonia projects now under development.

The global push to decarbonize power generation, shipping and other energy-intensive sectors of the economy and the Biden administration’s efforts to heavily incentivize the development of low-carbon energy sources have resulted in a growing list of big clean ammonia projects in the U.S. Almost all of these proposed multibillion-dollar production facilities are located along the Texas-Louisiana coast, a region that offers easy access to natural gas supply, carbon sequestration sites, and export markets. In today’s RBN blog, we continue our look at the burgeoning market for “green” and (especially) “blue” ammonia with a review of the largest production facilities now under development.

For some time now, clean ammonia proponents have been talking up its potential as a very-low-carbon alternative for power plants, ships and other hydrocarbon consumers. Still, rock-solid plans for U.S. projects to produce large volumes of ammonia from clean hydrogen remained few and far between. Until lately, that is, with the recent uptick in project announcements spurred on, in large part, by the supercharged tax credits for carbon capture and sequestration (CCS) in the Inflation Reduction Act (IRA) and the newly firmed-up efforts by power generators in Japan and South Korea to make clean ammonia an important part of their fuel mix going forward. In today’s RBN blog, we discuss the progress that clean ammonia has made since the IRA became law and the growing list of projects advancing to a final investment decision (FID), construction and production.

In our view, there are two or three clear leaders in the competition for billions of dollars in U.S. support for clean-hydrogen hubs — for example, it would be hard to imagine the Department of Energy (DOE) passing over hub proposals in Texas, Louisiana or the Marcellus/Utica. At the same time, there’s a lot to be said for plans to develop hydrogen hubs in California, North Dakota and, we might add, the Rockies, a region with extensive energy-related infrastructure and a long list of prospective clean-hydrogen end-users, not to mention at least two projects to convert coal-fired power plants to hydrogen. In today’s RBN blog, we discuss a multistate push to make the Rockies a hotbed of hydrogen-related activity.

PADD 2 — the 15-state region that includes both the Midwest and the Great Plains — is a major player in U.S. hydrocarbon production and refining, not to mention energy consumption, with its rich mix of industry and farming. It’s also bound to be a hot spot in the energy transition, given its vast wind resources, scores of ethanol plants, and extensive plans for carbon capture and sequestration (CCS). Not surprisingly, there also may be a clean hydrogen hub or two in PADD 2’s future — after all, it’s got natural gas in spades, plus lots of zero-carbon nuclear plants, countless wind farms, and more existing and potential hydrogen end-users than you can shake a stick at. In today’s RBN blog, we discuss the PADD 2 proposals now under development and why they may have a good shot at winning Department of Energy (DOE) support.

The U.S. Department of Energy has laid out a clear set of criteria for the six to 10 clean hydrogen hubs it will select next year to receive up to $8 billion in federal support. For example, DOE wants at least one hub to use renewable energy to make hydrogen, another to use nuclear power, and another to use fossil fuels with carbon capture and sequestration (CCS). It also wants diversity among hydrogen end-users — geographic diversity too (at least two hubs must be in areas with the greatest natural gas resources) — and the department says it will give extra weight to proposals likely to create the most opportunities for skilled training and long-term employment. Yet another factor that’s sure to boost the prospects for hydrogen hub proposals in the heart of the Marcellus/Utica Shale is the looming presence of West Virginia Senator Joe Manchin, the Energy & Natural Resources Committee chairman who helped make hydrogen hub funding — and the rest of last year’s $1-trillion-plus infrastructure bill (and this year’s Inflation Reduction Act) — a reality. In today’s RBN blog, we discuss the hydrogen hub proposals now under development in northern West Virginia, western Pennsylvania and eastern Ohio.

Last week, the U.S. Department of Energy (DOE) unveiled its timeline for receiving and reviewing proposals to develop six to 10 clean-hydrogen hubs and said its aim was to decide by the fall of next year which projects will share up to $7 billion in DOE support. The competition for those dollars is sure to be fierce, with some of the strongest proposals likely to come from states like Texas and California that have a lot of renewable energy and ambitions to be leaders in the energy transition. Also, there is a joint effort by three states east and north of Texas to develop a hydrogen hub that would take advantage of their existing and planned hydrogen-production and wind assets, natural gas supply, refinery and pipeline infrastructure, and carbon sequestration potential. In today's RBN blog, we discuss the DOE's recent announcement and the three-state hydrogen-hub plan, which is dubbed H2ALO.