by John Jacobs, Bipartisan Policy Center; Jon-Michael Murray, Terra Praxis
This blog post is part of a joint series by the Bipartisan Policy Center and Terra Praxis. Terra Praxis is a nonprofit organization focused on innovating and accelerating scalable solutions to decarbonize the largest sources of global emissions.
Growing energy demand, advances in reactor technology, and recent legislative and regulatory progress are fueling rising interest in nuclear energy. This momentum could open the door to repowering retiring coal plants with nuclear - an approach that could boost local economies while providing the grid with clean reliable energy, as outlined in BPC’s 2023 report, Can Advanced Nuclear Repower Coal Country?
This summer, Congress overwhelmingly passed and President Joe Biden signed into law the bipartisan ADVANCE Act, which aims to speed up the Nuclear Regulatory Commission’s (NRC) licensing process, reclaim U.S. leadership in nuclear energy, and clarify the regulatory framework for coal-to-nuclear conversions. In response to concerns over lengthy timelines, NRC proposed changes earlier this year to modernize the nuclear licensing process, including for small modular reactors (SMRs) with the potential for streamlined manufacturing and broader deployment. The U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) is also stepping up to back nuclear energy projects. In March, LPO announced a conditional $1.52 billion loan guarantee to repower Michigan’s Palisades nuclear plant, marking the first use of the Inflation Reduction Act’s $250 billion 1706 Energy Infrastructure Reinvestment program. This program targets projects that upgrade and repower retired energy infrastructure with clean energy heat sources, including coal-to-nuclear conversions.
As improved regulatory and financial frameworks take shape, the focus now shifts to identifying retiring coal plant sites ripe for nuclear repowering and the potential economic benefits for those regions. Nearly a quarter of the U.S. coal-fired fleet is slated to retire by 2029, leaving behind valuable energy infrastructure, a skilled workforce, and communities dependent on the well-paying jobs and tax base these plants provide. It is crucial that policymakers, government agencies, and local stakeholders recognize and understand the potential of repowering specific plants set to retire, both to capitalize on this opportunity and to ensure a smooth transition for displaced workers. Clear communication and demonstration of this potential are key to fostering support and collaboration.
This blog post looks at a recent study to compare the economic impact of repowering a specific Arizona coal power plant with nuclear energy instead of retiring it. We also review the remaining engineering and manufacturing challenges that must be overcome for repowering projects to come to fruition.
Identifying Sites for Coal-to-Nuclear Projects
A 2022 DOE study revealed that 80% of evaluated coal plants have the basic characteristics needed to be repowered by an SMR. Characteristics that make the remaining 20% of sites unsuitable include vulnerability to natural disasters, safety hazard concerns for nearby populations, slope of the terrain, and proximity to protected lands. The DOE study also estimated the economic benefits that a hypothetical coal-to-nuclear project could have on the community and job opportunities.
Key economic findings of the report include:
- A net increase of more than 650 jobs could be created in regions where SMRs repower retiring coal plants.
- Nearly 80% of coal plant jobs are transferable to nuclear plants with no new workforce licensing requirements.
- Jobs at nuclear plants provide higher wagescompared to coal plants, which would boost local tax revenue.
These benefits appear promising for coal-to-nuclear conversions in general, but what are the prospects for specific projects?
The Idaho National Laboratory’s Gateway for Accelerated Innovation in Nuclear (GAIN) program conducted detailed case studies to better understand the siting considerations and economic impact that specific coal-to-nuclear projects would have. One study centered on the Coronado coal power plant near Saint Johns, Arizona, which is scheduled to retire in 2032. The Coronado plant occupies 700 acres of a relatively flat 7,000-acre site that is at low risk of natural disasters. However, water scarcity in the region necessitates nuclear technologies that reduce water usage for cooling, such as passive cooling options. As highlighted in the graphic below, GAIN identified the Coronado site as particularly favorable due to the potential to decrease the project’s cost and timeline by reutilizing existing infrastructure, including rail access, grid infrastructure, and pumping stations. According to the 2023 BPC report, the cost saving opportunity for these projects ranges from 17% if only ancillary road, building, and transmission infrastructure is reutilized, and up to 35% if steam cycle components and electrical systems can also be adapted.
The GAIN study also highlighted significant regional economic and workforce benefits from transitioning the Coronado power plant to nuclear energy. As illustrated in the graphic, GAIN compared the potential regional economic outcomes of allowing the existing plant to retire versus repowering it with an SMR. The findings suggest that a coal-to-nuclear conversion could not only prevent economic decline but also drive regional growth and create additional employment opportunities, potentially surpassing the benefits of continued coal operations. Aside from these socioeconomic benefits, it is also important to consider the viability of repowering projects from a business perspective.
Capitalizing on Recent Momentum Requires Addressing Industry Challenges
While recent studies highlight the significant potential for coal-to-nuclear projects across the United States, several engineering and manufacturing challenges must be addressed to fully realize this opportunity. Key challenges include the need for site-specific designs due to varying seismic risks, the integration of new heat sources with existing infrastructure, and the complexities involved in retrofitting old coal plants to accommodate advanced nuclear technologies. Additionally, the manufacturing sector faces hurdles in scaling up production of the necessary components and materials.
Terra Praxis has extensively studied these issues and identified several helpful innovations and design-based mitigations that it has incorporated into a deployment model known as the REPOWER system. By leveraging insights from other industries that have successfully scaled up, the REPOWER system seeks to streamline coal plant repurposing and dramatically reduce licensing challenges, costs, and timelines for coal-to-nuclear projects. We will explore how new approaches like the REPOWER system can accelerate coal-to-nuclear deployment in a future blog post. The path to coal-to-nuclear is not without obstacles, but roadmaps do exist.
Addressing deployment and site-specific challenges head-on is crucial to capitalizing on the recent project announcements and opportunities at hand. Coal-to-nuclear conversions can help ensure a smooth transition for communities reliant on coal power plants, increase grid reliability, drive regional economic growth, reduce emissions, and position the U.S. at the forefront of nuclear energy technology.
This article was originally published on Bipartisan Policy Center website.