US Nuclear Power Revival? Biden Signs 'Rapid Approval Act'

Shortening Nuclear Power Plant Approval Process
Bipartisan Support for 'Cross-Party Legislation'
AI Data Center-Driven Power Demand Increase
Carbon-Free Energy, Nuclear Power on the Rise

[Image source=Yonhap News]

A bipartisan law has been enacted in the United States to accelerate the approval process for nuclear power plants and support the expansion of nuclear energy. As the net-zero (carbon neutrality) era approaches, the surge in electricity demand driven by artificial intelligence (AI) data centers has made nuclear power, which can reliably generate carbon-free energy, crucial from an energy security perspective. Analysts suggest this could signal the revival of the U.S. nuclear industry, which has been stagnant for decades.

On the 9th (local time), President Joe Biden announced on X (formerly Twitter), “Today, I signed the ‘ADVANCE Act’ to accelerate nuclear deployment,” adding, “This law will help provide clean nuclear energy and good jobs.”

The law aims to streamline the environmental review process for new reactors by the Nuclear Regulatory Commission and reduce the fees nuclear plant operators must pay to obtain permits. It received overwhelming bipartisan support from both Democrats and Republicans during the legislative process, reflecting a shared consensus that expanding nuclear power is inevitable for decarbonizing the power sector.

Tom Carper, chairman of the U.S. Senate Environment and Public Works Committee, stated in a press release that “Today is a historic day for America’s climate and clean energy future,” emphasizing, “This law will strengthen America’s energy and national security, reduce greenhouse gas emissions, and create numerous new jobs.”

The reasons nuclear energy is gaining attention amid the anticipated surge in electricity demand due to the AI revolution and data center expansion are varied. First, fossil fuels such as oil and coal pose significant climate crisis risks. Relying solely on wind and solar energy, which are heavily influenced by natural variability, leads to unstable power supply. Therefore, nuclear power, which can provide stable, large-scale, and continuous carbon-free electricity, has rapidly emerged as a key energy source.

The U.S. nuclear industry has faced a downturn over the past decade, with about ten nuclear plants closing early due to increased regulations and profitability issues following the nuclear construction boom of the 1990s. The nuclear sector views this law as a significant contribution to the historical development of nuclear energy.

However, some concerns about the potential safety issues of nuclear power plants have resurfaced, according to the U.S. political media outlet The Hill.

Meanwhile, on the same day, the price of the Global X Uranium ETF (URA), the leading uranium exchange-traded fund (ETF) in the U.S., closed about 1% higher. URA’s price has risen approximately 10% since the beginning of this year.