Unpacking the DOE’s spending spree

Plus: a first for nuclear

September 19, 2024

Good morning. Here’s a thought-starter: Plenty of US data centers have announced plans to run exclusively on wind and solar. But…plenty of them are also located in areas that have been hit by hurricanes and severe weather in the recent past. So…does the country’s economic dependence on data centers mean we need to include more weather-resistant natural gas to power them? Hit reply or comment and let’s talk about it.

— Reagin von Lehe, Energy Central Newsletter Writer

The DOE Forks Over Millions

The DOE is on a spending spree

The US Department of Energy has spent upwards of $130 million in the past two weeks on waste, efficiency, and storage solutions. Here’s a rundown of the biggest investments →

$40 million: what the DOE committed for sustainable solar waste solutions on Wednesday. 

  • About $16 million of the funding will go toward four projects prolonging the current 25-year life cycle of solar power systems.

  • About $20 million will be allocated for solar manufacturing advancements such as crystalline silicon and module technology.

Why? Solar panels often contain harmful lead and cadmium, so the DOE is on a quest to find effective waste management solutions to decrease health risks.

$90 million: how much the DOE dedicated to new building energy codes on Monday. The funds will support 25 projects in states, cities, and tribal nations across the country to ensure their buildings meet federal energy efficiency standards.

These efforts may result in more upfront costs for building owners, which has caused some backlash. But? There are potential long-term energy bill savings.

$100K: the size of each of two new awards for behind-the-meter tech and storage solutions the DOE recently unveiled to spur adoption. Two teams of energy developers will receive $100,000 each for grid storage system projects and present their solutions at Distributech in Dallas this March.

A New First for Advanced US Nuclear

Natura Resources-funded Molten Salt Research Reactor (MSRR) at Abilene Christian University

The US Nuclear Regulatory Commission granted Abilene Christian University in Texas a construction permit this week for a liquid salt-fueled nuclear reactor—the first of its kind ever licensed by the NRC and the first US university research reactor approved in more than 30 years.

Meet Natura’s MSR-1. Following an environmental analysis and a safety evaluation, the nuclear reactor will work to meet rising demand for energy and clean water—and outperform conventional reactors…

  • On safety: Liquid lessens the chance of nuclear reactors overheating, which is safer—the fuel salt would solidify, cool, and stay inside the system.

  • On efficiency: The new reactor can burn more than 90% of fuel, while current solid fuel reactors only burn less than 5%.

Zoom out: The US has the world’s largest fleet of nuclear power plants, but it’s still estimated to be 15 years behind China in the nuclear race. Why?

  • Two large Georgia plants came online 1) billions of dollars over budget and 2) behind schedule last year. Another plant in a US lab was canceled last year.

  • But China has 27 nuclear reactors under construction and an average construction turnaround of about seven years—much faster than other countries.

What BP’s $2B Sale Means for US Wind

BP is looking to sell its $2 billion, 1.7-GW portfolio of US onshore wind farms to refocus efforts on its solar subsidy, Lightsource bp.

Why does it matter? This potential sale demonstrates a larger trend among major energy players away from wind and toward more affordable solar. BP valued its offshore wind business at about $1 billion last year after struggling to make progress on three projects on the east coast.

Worth noting—there will be 3x more US solar capacity than wind capacity by next yea (about 737 GW of solar and 199 GW of wind), according to BloombergNEF.

Who else joined the shift away from wind this year?

The EC Wire