The Department of Energy mismanaged a landmark nuclear project to construct the country’s first small modular reactor, according to an audit by DOE’s Office of Inspector General released Tuesday.
The Carbon Free Power Project was a partnership between the federal government, NuScale Power and a coalition of Utah utilities that included $1.36 billion in DOE cost-share financial assistance. The government grant would help fund construction of the company’s first units at the Idaho National Laboratory.
The project that launched in 2015 was ultimately canceled in 2023 after NuScale and the Utah Associated Municipal Power Systems mutually agreed to terminate development of the plant. Cost estimates for the first-of-a-kind advanced reactors had climbed, giving the utilities that had agreed to purchase the power cold feet. NuScale’s stock price had collapsed. The canceled project left the U.S. government out $183 million.
Today, NuScale and others in the nuclear industry are coordinating with AI companies who need the power, navigating a complex supply chain, and are getting more financial and regulatory support to advance projects. DOE is overseeing a reactor pilot program with 10 private companies, which aims to demonstrate small reactor technology.
