Podcast Summary
Nuclear energy potential: Nuclear energy holds enough waste to power the US for over 150 years through advanced recycling and fast reactors, offering a substantial fuel reserve.
Nuclear power, which has provided the majority of clean energy in the US for decades, still holds significant untapped potential. With enough nuclear waste to power the country for over 150 years through advanced recycling and fast reactors, nuclear energy offers a substantial fuel reserve. Jake DeWitt, CEO of Oklo, a company specializing in such advanced nuclear technology, shares his lifelong fascination with nuclear energy and the current resurgence of interest and innovation in the field. Despite advancements, challenges persist, including outdated paradigms that hinder progress. Nuclear energy's clean, abundant power, especially in small modular reactors, could potentially fuel data centers, making it an intriguing prospect for companies like Oklo.
Productization in Nuclear Industry: The nuclear industry is transitioning towards productization, focusing on market fit and strategic partnerships to reduce costs and accelerate the commercialization of advanced technologies like the EBR2 reactor, which uses liquid sodium as a coolant and offers cost advantages and compatibility with common materials.
The nuclear industry is undergoing a shift towards more efficient and cost-effective solutions, moving away from the traditional research and development mindset and towards productization. One such technology poised for commercial success is the EBR2 reactor, a liquid sodium-cooled fast reactor that leverages existing supply chains and offers operational experience with over 25 reactors built worldwide. With a focus on finding market fit and strategic partnerships, this technology aims to reduce the cost of taking new technologies to market and accelerate the process. The EBR2 reactor's history includes successful demonstrations in the US, and its use of liquid sodium as a coolant offers advantages in cost competitiveness and compatibility with commonly available materials. This shift towards productization and strategic partnerships represents a significant change in the nuclear industry, with the potential to bring advanced technologies to market more efficiently and affordably.
Small-scale Nuclear Reactors: Small-scale nuclear reactors offer impressive operational characteristics, recycling capabilities, inherent safety features, and faster market entry, making them suitable for data centers, industrials, and defense sectors, which often require multiple reactors to meet their growing power demands.
The discussed power plant, which produced nearly 20 megawatts for 30 years, showcased impressive operational characteristics, recycling capabilities, and inherent safety features, all while requiring minimal external systems for stabilization and cooling. Now, a new project is underway, starting at a 15 megawatt scale, allowing for faster market entry and growth, while leveraging the existing knowledge and technology base. The customers for this scaled-down version include data centers, industrials, and defense sectors, who often require multiple reactors to meet their growing power demands over time. By building several reactors in phases, the company can match the customer's growth and avoid stranded capacity, ensuring reliable and resilient power supply. One megawatt of power is roughly equivalent to the energy usage of two regular homes over a month.
Small Modular Reactors in Tech Industry: The tech industry's shift towards renewable energy is increasing energy demand, making small modular reactors with liquid sodium as a coolant an attractive business proposition due to cost benefits and potential for near-limitless fuel supply, but regulatory approval is a major challenge.
The shift towards renewable energy sources, particularly in the tech industry, is driving up energy demand, making it an attractive business for energy providers. One specific example is the use of small modular reactors with liquid sodium as a coolant, which offers cost benefits and the potential for near-limitless fuel supply, making it a sustainable and competitive energy solution for the future. However, the challenges for companies in this field extend beyond the technical aspects of building these reactors; obtaining regulatory approval is also a significant hurdle to overcome.
Nuclear power plant licensing: Engaging regulators for modern licensing processes and finding the right team for engineering challenges are crucial for building a new nuclear power plant.
Building and licensing a new nuclear power plant involves a complex interplay of engineering, partnerships, and regulatory hurdles. The engineering challenges include finding the right team and partners to build the plant efficiently. The regulatory side involves engaging with regulators to modernize licensing processes and obtaining the necessary permits to commercially operate the plant. The company discussed its long-standing engagement with regulators since 2016 and the upcoming submission of an application for a plant in Idaho, which is expected to start generating energy in 2027. Despite challenges, the company aims to push the envelope and create a platform for better licensing processes for everyone involved.
Nuclear power plant construction: Company plans to recycle nuclear material for power, aims to start construction in 2027, has raised capital, and is focused on execution with contingency plans for potential delays
The company anticipates starting construction on its nuclear power plant in 2027, with the potential to begin producing power as early as 2028. They plan to recycle nuclear material as a power source and have demonstrated recycling technology operating at Idaho National Laboratory. The supply chain for the recycled material involves working with the owners of the material at existing power plants to transfer it to the company's facility once it's built and operated. The company has raised the necessary capital and is focused on execution, with contingency plans in place for potential delays. The industry generally anticipates regulatory reviews taking 24-25 months, but the company aims to complete this in less time. The advanced act recently passed provides recommendations for expediting these reviews. The company also plans to start building parts of the plant in parallel with the license application process.
Nuclear energy waste and recycling: Nuclear energy recycling can significantly reduce waste, extend resources, and lower fuel costs, making it a crucial part of the nuclear industry's scale-up plan to power the world for decades to come.
Nuclear energy, despite concerns about waste and history, has the potential to significantly contribute to the world's energy needs for decades to come. With enough energy content to power the United States for over 150 years through recycling and fast reactors, the nuclear industry is poised for a massive scale-up. Recycling infrastructure in the United States will play a crucial role in this transition by taking unused nuclear fuel and transforming it into new fuel, reducing waste, extending resources, and lowering fuel costs. The nuclear industry aims to develop and operate hundreds of new plants around the world within the next 10 to 20 years, leading to meaningful benefits for consumer power bills and electrification transitions. Despite concerns about electricity costs and the growth of solar and wind energy, the nuclear industry's potential for cost savings and resource extension makes it an optimistic prospect for the future of energy production.
Cost and intermittency of renewable energy: Renewable energy sources like solar have lower generation costs but higher delivered costs due to intermittency and need for backup power and grid infrastructure. Nuclear energy, as a firm power source, offers economic advantages and potential cost savings but requires a sustained order book and volume procurement to realize these benefits.
While renewable energy sources like solar have made significant strides in reducing the cost of generating electricity, the actual cost delivered to customers is higher due to the need for backup power and grid infrastructure. Intermittency is a major issue, requiring the construction of firm power sources and grid expansion to ensure a consistent power supply. Nuclear energy, which requires the least amount of materials per megawatt hour of energy generated, offers significant economic advantages and potential for cost savings when integrated into the system as a firm power source. However, realizing these cost benefits requires a sustained order book and volume procurement to drive down initial deployment costs. In summary, a comprehensive approach to energy production that includes both renewable and firm power sources is necessary to optimize the system for cost and reliability.
Multi-plant strategy: Oklo's multi-plant strategy enables them to negotiate better costs with suppliers and contribute reliably to the grid, potentially reducing grid straining costs for consumers.
Oklo, a nuclear energy company, is leveraging their multi-plant strategy to negotiate better costs with suppliers and contribute reliably to the grid. By expanding their operations beyond a single plant, they can position themselves to lower costs and add stability to the power grid. This approach not only benefits Oklo but also potentially reduces grid straining costs for consumers. Despite recent challenges in the nuclear energy industry, Oklo is optimistic about the future and aims to stabilize and eventually lower rates. As always, investors should conduct their own research before making any investment decisions.