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Increased demands for energy spur innovation and construction projects
Last week, the US Nuclear Regulatory Commission (NRC) issued construction permits for Kairos Power’s Hermes 2 advanced test reactor in Oak Ridge, Tennessee. The permits will allow Kairos to construct a facility featuring two 35-megawatt thermal reactors that use molten salt to cool the reactor cores.
Kairos Power is investing $100 million in the project, which is anticipated to be operational in 2026.
Unlocking Future Energy Potential
According to Kairos Power, the Hermes 2 facility plans include the construction of two low-power test reactors. The project will provide critical operational data on innovative technologies in the company’s quest for safe, clean electricity production.
A rendering of the Hermes 2 reactor designed to test and demonstrate innovative nuclear technology. Image: NRC.gov, Kairos Power
Nuclear power development received a boost in support from the ADVANCE Act of 2024 and the US Government’s commitment to help meet growing power needs with clean energy. In addition, the Department of Energy released guidance on enhancing the safety of advanced nuclear reactors. Such advanced designs have “the ability to achieve enhanced efficiency, safety, and versatility over conventional reactor designs,” according to the Department of Energy.
Energy Outlook Fueling Construction Projects
The data appetite for modern technologies like electric vehicles and artificial intelligence is accelerating demand for construction opportunities in the energy sector and data centers. The Hermes 2 project underlines the US expansion of clean and advanced energy technologies.
An International Energy Agency report said, “Updated regulations and technological improvements, including on efficiency, will be crucial to moderate the surge in energy consumption from data centers.”
According to Michael Guckes, ConstructConnect’s Chief Economist, energy projects have impacted results in regional construction starts. In the October 2024 Construction Economy Snapshot, Guckes reported, “Through September, YTD construction spending expanded the fastest in the South Atlantic (up 15.7%) thanks to the steady flow of energy and data center “mega” projects over $1 billion in cost.”
Sebastian Tillet of Oxford Economics, a ConstructConnect partner, said that the energy sector’s strategic importance and investment momentum suggest continued short- and long-term growth. [Read Tillet’s article here: Rising Demand Fuels Surge in US Data Center Construction]
Streamlined Path to Approval
The Hermes 2 permitting marks progress in the NRC’s efforts to make the regulatory processes more efficient for developing advanced nuclear technologies. The Commission determined in its review that the Hermes 2 project met all necessary safety and environmental requirements.
“While keeping safety at the forefront, the permitting process was quite efficient, and we issued these permits in less than 18 months,” NRC Chair Christopher Hanson said. “This shows we can rapidly apply relevant conclusions from earlier reviews to promptly reach decisions on new reactors.”
Kairos Power initially submitted its application for the facility in July 2023. The NRC’s final safety evaluation was released on July 19, 2024, followed by the site’s final environmental assessment on August 30, 2024.
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Construction Starts Here™ at ConstructConnect, where our mission is to help the construction industry start every project on a solid foundation. A leading provider of software solutions for the preconstruction industry, ConstructConnect empowers commercial construction firms to streamline their workflows and maximize productivity. ConstructConnect operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500, and Fortune 1000.
