Prime Highlights:
Alphabet, through a deal with Kairos Power, is aiming to reduce nuclear energy costs by deploying small modular reactors.
Alphabet’s CIO, Ruth Porat, emphasized the importance of nuclear in the U.S. energy mix, citing its reliability and carbon-free benefits.
High costs and delays have plagued traditional nuclear projects in the U.S., making cost reduction a critical focus.
Key Background:
Alphabet, the parent company of Google, is targeting a reduction in the cost of new nuclear reactors through its partnership with Kairos Power, a small modular reactor developer. Ruth Porat, Alphabet’s President and Chief Investment Officer, emphasized the necessity of incorporating nuclear energy into the U.S. power mix at the CERAWeek by S&P Global energy conference.
Porat highlighted that nuclear energy offers significant advantages, such as reliability and carbon-free power generation, which are critical as the demand for electricity continues to rise, driven partly by artificial intelligence. However, traditional nuclear projects in the U.S. have been burdened with high costs and delays, creating a pressing need for innovation. To address these issues, Porat stressed that both public and private sectors must act quickly to build a series of nuclear plants that can replicate construction processes to drive down costs.
Alphabet’s Google unit struck a deal last October to purchase electricity generated from small modular reactors, which are considered next-generation technology. These reactors promise to reduce construction costs and deployment timelines through manufacturing efficiencies. Google and Kairos Power aim to have the first reactor online by 2030, with additional reactors expected by 2035.
Porat cautioned that the nuclear sector may not meet demand until at least 2035, while NextEra Energy CEO John Ketchum noted that renewable energy remains the most immediate and cost-effective solution. Despite this, the promise of small modular reactors presents a significant opportunity for long-term energy solutions, particularly if the industry can scale and refine technology.
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