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One of the nation's last large-scale nuclear reactors will finally be able to begin loading fuel as soon as October, likely marking the beginning of the end for a construction project beset by enormous cost overruns and extensive delays, Alan writes.

Why it matters: Units 3 and 4 at Plant Vogtle in Georgia will almost certainly be the final fission-based, large-scale reactors built in the U.S., but their successful completion could reinvigorate efforts by U.S. companies to sell reactors abroad. 

What's happening: Georgia Power's parent company, Southern Company, announced that it's submitted the last two filings needed to begin loading fuel and to start the Unit 3 reactor as soon as Q4. 

Catch up fast: Georgia Power owns the largest stake in the new light water AP1000 reactors at Plant Vogtle (45.7%). The other owners are Oglethorpe Power Corporation (30%), Municipal Electric Authority of Georgia (22.7%) and Dalton Utilities (1.6%). 

The reactors were set to go online in November 2021. However, they've faced extensive construction delays, and the estimated cost has more than doubled to over $30 billion.

Unit 4 is expected to enter service in Q3 or Q4 next year.

Meanwhile: The Department of Energy's Loan Programs Office is providing up to $12 billion in loan guarantees for the project.

"The AP1000 was designed as the next-generation nuclear reactor that could provide a standardized design for the U.S. utilities market," the DOE said in a press release.

The intrigue: Southern Company agreed to take on the project in 2017, after the initial owner, Westinghouse, declared bankruptcy.

But Georgia Power has faced intense scrutiny for the project, which critics such as the League of Conservation Voters and the IEEFA say has unfairly burdened ratepayers with higher electricity bills.

The utility has maintained that the new reactors "will be clean energy sources and produce zero air pollution," Georgia Power spokesperson Jeff Wilson told Inside Climate News earlier this year. “That’s why we remain fully committed to getting the job done, and getting it done right, with safety and quality our top priority.”

What we're watching: This could get U.S. reactor designs back on the world stage. 

"It’s been a real challenge that we haven’t had one to show the world. The Korean designs have gotten ahead of us — and obviously the Russian and Chinese designs," says Rich Powell, CEO of ClearPath, which has generally backed nuclear investment.

"Now, Westinghouse and the whole group of U.S. contractors can much more confidently go out in the world and say 'Here’s this thing. We can bring you to Georgia, we no longer need to bring you to China to see them in person.' And that will really improve the commercial prospects."

1 big thing: Plant Vogtle nears the finish line

Raincoat, a Puerto Rico-based startup that makes white-label insurance software, raised $4.5 million in seed funding, the company tells Megan.

Why it's the BFD: Traditional insurance providers aren't set up to handle the waves of climate change–caused weather events, and insurtech startups are eager to experiment with nontraditional models.

Details: Anthemis Group led the all-equity round that closed in June. Raincoat CEO Jonathan Gonzalez declined to disclose the round's valuation.

SoftBank Group’s SB Opportunity Fund, Puerto Rican banking leader Banco Popular, Chilean financial group Consorcio, Miami-based 305 Ventures and New York’s Divergent Capital also participated in the round.

How it works: Raincoat makes modeling software for parametric insurance products, which pays out a predetermined amount should a qualifying event occur.

Parametric models remove the need for claims adjusters, which can often take months during high volume claims events like natural disasters and can delay essential repairs.

Yes, and: Gonzalez tells Megan that he sees parametric models replacing traditional insurance policies as natural disasters become more common and high volume events overwhelm traditional insurance providers that don't take other metrics like quality of life or lost earnings into account.

Gonzalez, who moved back to Puerto Rico months before Hurricane Maria devastated the island, sees traditional insurance that focuses on asset valuation then becoming more automated.

2. The BFD: Insurance startup nabs seed funding

Illustration of an umbrella made up of money with a little raincloud over it 

💰 Global renewable energy investment had its strongest first half on record, per just-released analysis from the research firm BloombergNEF, our Generate colleague Ben Geman writes.

VC and private equity funding hit record levels, but that's a small slice of the total $226 billion pie. 

🚗 California leads the U.S. in electric vehicle ownership, accounting for 39% of all EVs registered nationwide, our What’s Next colleague Joann Muller reports. Florida is No. 2, with a share of 6.7% of the nation’s EVs, followed by Texas (5.4%), Washington (4.4%) and New York (3.6%).

Look more closely at the numbers, however, and it turns out EVs represent less than 2% of all vehicles on the road in California, and 1% or fewer of the vehicles in each of the other states.

3. 🌡️ Temperature check

Illustration of an earth in a roast pan with a meat thermometer.

• Terabase Energy raised $44m in Series B financing led by Breakthrough Energy Ventures and Prelude Ventures. SJF Ventures participated. https://axios.link/3oLKqtF 

• Energy Impact Partners announced that its Elevate Future Fund participated in Rheaply’s $20m funding round in June. https://axios.link/3d048iO

• Freestone Holdco, a portfolio company of the private equity firm Tailwater Capital, has signed definitive agreements to invest in Houston-based Elemental Recycling, which has developed a process to upcycle plastic and organic waste into graphite and hydrogen. https://axios.link/3vyaGLV

• Sapphire Gas Solutions, a Texas-based natural gas provider, has acquired Cleancor Holdings from Seacor Holdings. Cleancor is a California-based CNG, LNG, RNG and hydrogen provider. https://axios.link/3bkJ6uR

• Apex Clean Energy refinanced and expanded its corporate debt facilities as part of its conversion to an independent power producer model. The company received $650m of debt capital through a $450m senior secured green term loan facility and a $200m senior secured green revolving letter of credit facility. https://axios.link/3BEyqSm 

• Eco Wave Power Global (Nasdaq: WAVE) announced that it's deploying its pilot wave-energy plant at the Port of Los Angeles. https://axios.link/3Q6tWrW 

4. Hot deals

• EDF Action, the advocacy arm of the Environmental Defense Fund, hired Ashley Lough as director of board and external relations, and Anabel Maldonado as director of political programs in the southwest. https://axios.link/3BxJpwN

• Chevron (NYSE: CVX) has appointed Alana Knowles as vice president and controller, effective March 1, 2023. Knowles is vice president for finance, downstream and chemicals and midstream. https://axios.link/3zt0w0k

5. It's personnel

👷🏻‍♀️ Megan's home improvement projects this week include hanging some new curtains, creating a makeshift art installation to cover an unfortunately located breaker box, and stocking up on garden supplies from all those end-of-season sales.

📺 Alan is greatly enjoying “Slow Dogs” on Apple TV. If you like spy thrillers, it’s one to check out.

Thanks for reading Climate Deals! Please share with your friends, family and insurance enthusiasts.

August 02, 2022

1 big thing: Plant Vogtle nears the finish line