Sunday, March 05, 2023

Powering up: Why the nuclear company founded by Bill Gates is coming to Wilmington


Gareth McGrath
Fri, March 3, 2023 


It was the kind of economic development announcement officials love to make.

Last month, TerraPower announced it would be teaming up with Global Nuclear Fuels - America (GNF) to build an advanced fuel facility at GE Hitachi Nuclear Energy's (GEH) sprawling campus in Castle Hayne. The project, along with additional jobs associated with ongoing projects at GEH, is expected to see the campus' workforce jump by 500 over the next five years.

As with many significant economic development projects these days, incentives are involved. New Hanover County and Wilmington agreed to provide $1.5 million in public money to support the addition of the new jobs, which will average $131,000 in salary.

According to the incentive deal with GEH, New Hanover will pay out $250,000 and Wilmington $50,000 a year over the next five years − assuming the employment goals are met. For its part, GEH agreed to invest $85.2 million in its Wilmington operations by December 2025.

So what and who exactly is coming to Castle Hayne?

Who is TerraPower and what is Natrium fuel?

TerraPower describes itself as a "nuclear innovation company" aimed at improving the world through nuclear energy and science. The Washington state-based company sees nuclear energy as a way of not only improving people's lives through providing reliable and renewable nuclear power, but helping the world decarbonize its power network and mitigate the impacts of climate change.

Key to that work is development of the Natrium technology, which was developed in conjunction with GEH. The idea is to develop a cost-competitive, flexible nuclear reactor that offers countries and utilities a viable power option to work in conjunction and at times supplement other "green" power sources.

A typical existing nuclear reactor produces about 1,000 megawatts (MW) of power, or enough electricity to support about 725,000 homes. Like the other new generation of small nuclear reactors, TerraPower's Natrium reactor will produce about 345 MW.

Powering the new small reactors will be high assay low-enriched uranium, or HALEU, which in enriched to a higher level than the fuel used in traditional nuclear plants.

"HALEU is enriched between 5% and 20% and is required for most U.S. advanced reactors to achieve smaller designs that get more power per unit of volume," states the U.S. Department of Energy. "HALEU will also allow developers to optimize their systems for longer life cores, increased efficiencies and better fuel utilization."

But the U.S. currently doesn't have a commercial-scale HALEU production facility, and plans to use a Russian facility for fuel are now off the table after that country's invasion of Ukraine.

"The Natrium fuel facility will help produce the fuel rods that will power our reactor," said a TerraPower spokesperson in an email. "GEH and GNF are recognized experts in fuel manufacturing and already partner with us for the engineering design of the Natrium reactor. As such, they were a natural choice to build and operate the Natrium Fuel Facility."


The $200 million facility will be jointly funded by TerraPower and the Energy Department, which is financially supporting many projects as it looks to renew and rejuvenate the country's nuclear industrial base as it moves away from the traditional giant nuclear plants − like the Brunswick Nuclear Plant − to advanced small modular nuclear reactors (SMR) that are cheaper to build and operate.

“Reinvigorating the domestic nuclear supply chain is a critical step in building the next generation of reactors,” said Tara Neider, a TerraPower VP and Natrium project director, in a release announcing the new fuel facility.

Construction on the Natrium fuel project is expected to begin next year. Once complete, the facility is expected to employ about 100.
How is Bill Gates involved?

The co-founder of Microsoft and once the world's richest man is the founder and chairman of TerraPower.

In interviews, Gates has called nuclear power a viable option to power the world with clean, renewable energy that can work in conjunction with renewable energy sources, like wind and solar.

Nuclear energy is heralded by its supporters as a reliable energy source that can be ramped up when other weather-dependent "green" energy sources can't or when large-scale energy storage options aren't practical or feasible.


TerraPower Founder and Chairman Bill Gates speaks in a recorded video message during a June 2021 press conference announcing efforts to build a Natrium reactor demonstration project on the site of an old coal plant in Wyoming.

Unlike wind and solar, nuclear power plants can also adjust output to meet demand throughout the day, allowing them to be paired with renewables to create a hybrid power generation system.

But Gates also has said he is in tune with the financial, safety, and other concerns many residents and governments have about the use of nuclear power, although he hopes the innovations in the new generation of reactors will help alleviate many of those worries.
What does the project mean for the Wilmington area?

As home to GEH and GNF, Wilmington was already a hub for the U.S. nuclear industry. The new Natrium fuel facility should help cement that reputation.

"If it gets built it would be a new leader in a new area of technology," said Dr. Paul Turinsky, professor emeritus of nuclear engineering at N.C. State University. "Whether that turns into commercial success long-term, that's for industry and others to determine when or if that happens."

The new facility will be licensed by GNF, which will also employ the workers there.

The projects also mean more well-paying jobs for the area, which has local politicians and economic development officials smiling.

Like TerraPower, GEH is working on the development of its own advanced small modular reactor. The company, which employs more than 2,000, has announced several agreements with utilities to explore the potential deployment of its new BWRX-300 small modular reactor. That list includes the Tennessee Valley Authority (TVA) and utilities in Poland, Sweden, and Canada.


Image of GE Hitachi Nuclear Energy's BWRX-300 Small Modular Reactor (SMR).

So does that make the companies potential competitors as well as collaborators in the developing SMR market?

"Advanced nuclear is going to play a critical role in helping achieve net-zero targets," said the TerraPower spokesperson. "There are multiple advanced reactor technologies in various levels of development around the world. TerraPower is farther along than most of these companies and the Natrium advanced reactor was selected by (Department of Energy) to demonstrate the technology through a public-private partnership and will be ready to operate this decade."

TerraPower, partnering with GEH, has announced plans to build a demonstration Natrium reactor project in Wyoming, which it hopes to have operational by 2030.

Bill Gates and Warren Buffett:A $4B nuclear power plant backed by Bill Gates and Warren Buffett is set for construction in Wyoming

"We look forward to continuing to collaborate with TerraPower to advance the Natrium technology and we are pleased to build on our more than 50-year legacy as a fuel manufacturer for carbon-free energy generation," said GEH spokesman Jonathan Allen in an email.

But aren't we moving away from nuclear power?


Well, yes and no.

Buried by financial, safety, and regulatory concerns, gone are the days of the big traditional nuclear reactors that dot the country. Instead, the industry with government support is moving toward the development and deployment of smaller modular reactors.

Among those embracing the idea of SMRs is Duke Energy, North Carolina's largest utility. The company wants to incorporate at least 570 MW of new nuclear power into its production portfolio as part of its state-mandated plan to reach carbon neutrality by 2050 by turning to more renewable, less polluting energy sources.


A 2019 aerial photo of the Brunswick Nuclear Plant, located just north of Southport in Brunswick County.

"Small nuclear reactors (SMR) are essential for Duke Energy’s transition to a cleaner energy future," company spokesperson Jennifer Sharpe said in September. "The low-carbon, dispatchable energy of SMRs allows us to ensure reliable service for customers as we add more renewables to our system."

But environmentalists and others believe re-embracing nuclear power is a step in the wrong direction, especially as the cost of renewables continues to drop as their use becomes more widespread nationally and across the world. They also note that the industry still relies on massive government support to develop and eventually build a new generation of reactors.

Power play:How to keep the lights on in the future: Duke, environmentalists jostle over future grid

The government, however, isn't ready to turn the switch off on nuclear power.

Along with ongoing support from the Energy Department, President Biden's recently passed Inflation Reduction Act included several for the nuclear industry. Along with production tax credits to help keep the country's existing fleet of nuclear plants working, the legislation also includes incentives for development and operation of new SMRs and $700 million to support the development of the HALEU supply chain − including the new facility in Castle Hayne.

Turinsky said he's heard about nuclear making a comeback before, most recently earlier this century when several new big nuclear plants were proposed − all except one eventually scrapped due to massive cost overruns and regulatory concerns.

“I’m more optimistic now and the last time we said there was going to be a renaissance,” Turinsky said. “There’s a better chance now because of climate concerns and the uncertainty of energy sources, like we're seeing with the war in Ukraine.”

But he said the key long-term question for nuclear's revival is if the industry can operate without government subsidies.

"Will the technology be accepted by industry, and when do we get there?" Turinsky said. "I don't know if anyone knows that answer."

Local officials are hoping the new investment in Castle Hayne will help facilitate that next step in nuclear's domestic comeback.

Reporter Gareth McGrath can be reached at GMcGrath@Gannett.com or @GarethMcGrathSN on Twitter. This story was produced with financial support from 1Earth Fund and the Prentice Foundation. The USA TODAY Network maintains full editorial control of the work.

This article originally appeared on Wilmington StarNews

No comments: