U.S. Energy Department Awards $800 Million for Small Modular Reactor Projects in Tennessee and Michigan

The U.S. Energy Department on Dec. 2 announced the selection of the Tennessee Valley Authority and Holtec Government Services for federal funding to accelerate early deployments of advanced light-water small modular reactors, or SMRs. The agency will provide up to $800 million through cost-shared awards to support projects in Tennessee and Michigan. The initiative is intended to expand domestic nuclear capacity, strengthen supply chains, and position SMRs as a major contributor to national energy strategy in the early 2030s.

The Tennessee Valley Authority will receive $400 million to move forward with a GE Vernova Hitachi BWRX-300 unit at the Clinch River Nuclear site in Tennessee. The agency will also prepare for additional units in cooperation with Indiana Michigan Power and Elementl. Supply chain partners include Scot Forge, North American Forgemasters, BWX Technologies and Aecon. Additional support will come from Duke Energy, Oak Ridge Associated Universities and the Electric Power Research Institute.

Holtec will receive $400 million to deploy two SMR-300 reactors at the Palisades Nuclear Generating Station site in Covert, Michigan. Holtec plans to demonstrate a model that combines technology supply, construction with Hyundai Engineering and Construction, plant operations and sales of electricity to nearby utilities and industrial customers. Officials view the project as an early template for future domestic and international orders.

SMRs use proven supply networks and standardized designs that allow projects to move from planning to construction more quickly. The awards stem from the department’s solicitation issued in March 2025 for $900 million to reduce design and licensing risk for first-mover projects. The remaining $100 million will be allocated later this year to address additional barriers in site readiness and supply chain expansion.

The selections form part of the federal government’s effort to advance new nuclear generation and implement President Donald Trump’s executive orders aimed at accelerating a national nuclear expansion.