Amazon jumps on nuclear power bandwagon by investing in X-Energy and promising small reactors
The company revealed three deals, including an investment in a fission startup and two development agreements to add nuclear power to the grid.
Amazon today became the latest big tech company to throw its weight behind nuclear power, joining Microsoft and Google, which both previously announced long-term promises to buy nuclear power from startups to power their data centers.
Amazon's Recent Investment in Nuclear Power: A Significant Step Towards a Cleaner Energy Future
In a groundbreaking move, Amazon has announced three deals aimed at adding approximately 300 megawatts of nuclear power capacity in the Pacific Northwest and Virginia, two regions that are critical to the company's data center operations. The company has invested in X-Energy, a startup specializing in small modular reactors (SMRs), and has signed two development agreements to construct SMRs in these regions.
SMRs: A New Era in Nuclear Power
SMRs are a type of nuclear reactor that generates a fraction of the power produced by contemporary nuclear power plants. Proponents of SMRs claim that they will be faster and cheaper to build, with the potential to start generating electricity in the early 2030s. The two development deals announced by Amazon will support the construction of four SMRs in the Pacific Northwest, producing around 320 megawatts combined, and 300 megawatts worth of SMRs in Virginia.
X-Energy: A High-Temperature Gas-Cooled Reactor
X-Energy, the startup that has received a $500 million investment from Amazon's Climate Pledge Fund, specializes in high-temperature gas-cooled reactors. This approach, which fell out of favor in the U.S. and Europe, has been revived in Japan and China. X-Energy's Xe-100 reactor will generate 80 megawatts of electricity, using a unique fuel system known as TRISO. This system, which contains uranium particles coated with three layers of carbon, is touted as being safer than existing nuclear fuel designs.
The Future of Nuclear Power
The new deals announced by Amazon and X-Energy give nuclear fission a boost in the face of growing progress on nuclear fusion and the steady march of power from renewable sources like solar and wind. While nuclear power is widespread, new reactor designs have yet to be commercially proven, and their timeline puts them in direct competition with other sources of carbon-free power that promise to decarbonize the electrical grid in the coming decade.
The Impact on the Energy Landscape
The deals announced by Amazon and X-Energy have significant implications for the energy landscape. The construction of SMRs in the Pacific Northwest and Virginia will add around 300 megawatts of nuclear power capacity, enough to power about 1 million homes. The investment in X-Energy will support the development of up to 5,000 megawatts of new nuclear power throughout the U.S. by 2039.
Conclusion
Amazon's investment in X-Energy and the two development agreements announced by the company mark a significant shift towards a cleaner energy future. The use of SMRs and high-temperature gas-cooled reactors offers a promising alternative to traditional nuclear power plants, with the potential to be faster and cheaper to build. As the world continues to transition towards a low-carbon economy, the deals announced by Amazon and X-Energy demonstrate the importance of nuclear power in the fight against climate change.
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