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Loan applications for U.S. advanced nuclear energy projects are on track to soar more than 10x since last year, the Energy Department's Loan Programs Office tells Axios.

Why it matters: Nuclear energy, the single largest provider of 24/7 zero-emissions electricity in the U.S., may be the only power source that can meet data centers' insatiable energy demand.

Driving the news: We talked with Loan Programs Office director Jigar Shah about the latest in nuclear energy development.

Catch up fast: The office provides loans and loan guarantees for energy projects that risk-averse banks see as too nascent for financing.

State of play: The office has received or expects to receive $64.9 billion in loan and loan-guarantee applications for advanced nuclear energy projects — up from just $6.4 billion in September 2023.

What are we missing amid the new focus on nuclear energy?

"Data center companies have recommitted to their emissions goals. This was potentially a good opportunity for them to say, 'We're no longer doing this, it's too hard.' But they haven't.

So the question becomes, how does one do that? Solar plus 12 hours of battery storage is an option. Folks can do geothermal, but the geothermal industry is saying we might be able to do 1,000 MW by 2030 — not 25,000 megawatts. So nuclear is on the table."

"Not being talked about enough is just how small the number of megawatts are to get us nth-of-a-kind. If you look at the small modular reactors, 10 reactors gets you there, and that's 3,000 MW.

When you think about hyperscale data center companies signing contracts for 25,000 MW by 2030 delivery, 3,000 megawatts is not a lot."

New reactors are years away. How do you see investment being relevant to the load-growth that we're seeing now?

"It will take at least 10 reactors to get small modular reactors to nth-of-a-kind. Because we've already built two AP1000s, and Poland's looking to build some, there may be a smaller number that will get us to that same level here.

There is no firm deadline for decarbonization of the grid. We're going have to keep decarbonizing it all the way through 2100. So it's important to know that new tools are coming, to get the big stuff right, even if it takes 10 years to get there."

We used to hear that LPO was moving too slowly. There's still that criticism — but also new concern that LPO now is moving too quickly as the end of Biden's term approaches.

"It's a Goldilocks issue, right? Our standards haven't changed. What has changed is the urgency from our applicants.

It used to be that when we asked them questions, it took them a month to get back to us. Today, it takes 24 hours. When we get our answers faster, we can process deals faster."

Jigar Shah, LPO see nuclear loan applications skyrocket

Loan applications for nuclear energy are surging 10x.

DOE Loan Programs Office director Jigar Shah speaks at a Climate Week NYC event last month. 

DOE Loan Programs Office director Jigar Shah speaks at a Climate Week NYC event last month. Photo: Gary Gershoff/Getty Images

Climate tech

Loan applications for U.S. advanced nuclear energy projects are on track to soar more than 10x since last year, the Energy Department&#x27;s Loan Programs Office tells Axios.Why it matters: Nuclear energy, the single largest provider of 24/7 zero-emissions electricity in the U.S., may be the only power source that can meet <a class="gtmContentClick" data-vars-link-text="data centers&#x27;" data-vars-click-url="https://link.axios.com/click/37083999.7/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9jbGltYXRlLWRlYWxzLzIwMjQvMDkvMTEvYWktZGF0YS1jZW50ZXJzLXBvd2VyP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1wcm9fZGVhbHNfY2xpbWF0ZXRlY2hfc3VicyZzdHJlYW09dG9w/61f8314e54c3983d002477d1B66551b84" data-vars-content-id="2d74f680-74ee-4222-9347-b1aa27654095" data-vars-headline="Jigar Shah, LPO see nuclear loan applications skyrocket" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://link.axios.com/click/37083999.7/aHR0cHM6Ly93d3cuYXhpb3MuY29tL3Byby9jbGltYXRlLWRlYWxzLzIwMjQvMDkvMTEvYWktZGF0YS1jZW50ZXJzLXBvd2VyP3V0bV9zb3VyY2U9bmV3c2xldHRlciZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9jYW1wYWlnbj1wcm9fZGVhbHNfY2xpbWF0ZXRlY2hfc3VicyZzdHJlYW09dG9w/61f8314e54c3983d002477d1B66551b84" target="_self">data centers&#x27;</a> insatiable energy demand.

Jigar Shah, LPO see nuclear loan applications skyrocket

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