Holtec Lands Major DOE Contract for SMR Deployment
Holtec Ends New Mexico Waste Site Plans and Secures Major Federal Deal
After deciding it would abandon plans to build another nuclear waste storage site in southeastern New Mexico, Holtec Government Services landed a major federal contract regarding the building of small modular reactors in the U.S.
DOE Announces Major Federal Funding for SMR Projects
The U.S. Department of Energy (DOE) announced the selection of the Tennessee Valley Authority (TVA) and Holtec Government Services to support early deployments of advanced light-water small modular reactors (SMRs) in the United States.
The project teams will receive up to $800 million in federal cost-shared funding to advance initial projects in Tennessee and Michigan and help expand the Nation’s capacity while facilitating additional follow-on projects and associated supply chains.
The selections announced will help deliver new nuclear generation in the early 2030s, strengthen domestic supply chains, and advance President Trump’s Executive Orders to usher in a nuclear renaissance and expand America’s Energy Dominance agenda.
Federal Leaders Emphasize Need for Rapid Nuclear Deployment
“President Trump has made clear that America is going to build more energy, not less, and nuclear is central to that mission,” said U.S. Secretary of Energy Chris Wright. “Advanced light-water SMRs will give our nation the reliable, round-the-clock power we need to fuel the President’s manufacturing boom, support data centers and AI growth, and reinforce a stronger, more secure electric grid. These awards ensure we can deploy these reactors as soon as possible.”
Project Teams and Funding Breakdown
With the announcement, DOE is supporting the following first-mover teams to develop and construct the first Gen III+ small modular reactor (Gen III+ SMR) plants in the United States:
Holtec Government Services, LLC (Holtec) — $400,000,000
Holtec plans to deploy two SMR-300 reactors at the Palisades Nuclear Generating Station site in Covert, Michigan, demonstrating viability for additional orders both domestically and abroad.
Holtec is pursuing an innovative one-stop-shop approach to SMR deployment by fulfilling the roles of technology vendor, supply chain vendor, nuclear plant constructor in partnership with Hyundai Engineering & Construction, plant operator, and electricity merchant selling the power to near-by utilities and end-users.
Tennessee Valley Authority (TVA) — $400,000,000
TVA plans to advance deployment of a GE Vernova Hitachi BWRX-300 at the Clinch River Nuclear site in Tennessee, as well as accelerate the deployment of additional units with Indiana Michigan Power and Elementl.
Additionally, TVA plans to work with the domestic nuclear supply chain partners Scot Forge, North American Forgemasters, BWX Technologies, and Aecon. Other partners supporting the project include Duke Energy, Oak Ridge Associated Universities, and the Electric Power Research Institute.
DOE Pushes for Rapid Nuclear Growth to Meet Demand
As the nation prepares for continued growth in electricity demand, President Trump has charged DOE with adding new, affordable and reliable energy to keep America energy secure. Small modular reactors offer flexible deployment, proven technology, and the ability to leverage existing supply chains, making them one of the fastest and most scalable pathways to new nuclear capacity.
In March 2025, DOE issued a $900 million solicitation to de-risk the deployment of Gen III+ SMRs and the remaining $100 million will be awarded later this year to support additional deployments and address key barriers in design, licensing, supply chain, and site readiness.