Amazon is investing in the nuclear industry in small modular reactors for clean energy

Amazon has announced a bold step towards sustainability with a major investment in small modular reactors (SMRs) to use clean nuclear power globally. The initiative marks a significant shift in the company’s energy strategy as it aims to reduce its carbon footprint and move closer to its goal of net zero carbon emissions by 2040.

The investment, part of Amazon’s Climate Pledge, involves a strategic partnership with a leading SMR developer, which will provide the technology to power Amazon’s data centers, logistics hubs and office campuses. The company did not disclose the financial terms of the deal, but emphasized its commitment to adopting innovative solutions to address the challenges of climate change.

(Small Modular Light Water Nuclear Reactor (SMR))

Small modular reactors, with an electrical output of less than 300 MWe or a thermal output of less than 1000 MWth, are a new generation of nuclear reactors designed to be smaller, safer and more cost-effective than traditional nuclear power plants. Unlike conventional reactors, SMRs can be built in factories and transported to sites, making them more flexible and easier to deploy. The technology has gained traction as a viable alternative to fossil fuels, providing a stable and low-carbon energy source that can complement renewable energy such as solar and wind. Small modular reactors are smaller in size and capacity compared to traditional nuclear reactors, offering several advantages over their larger counterparts, including increased safety features, scalability, flexibility and versatility, reduced capital costs, reduced environmental impact, and better waste management.

According to CNBC, Amazon Web Services (AWS), Amazon’s cloud computing subsidiary, has announced that it has signed an agreement with Dominion Energy to explore the development of a small modular nuclear reactor. AWS expects the new SMRs to bring at least 300 megawatts of power to the Virginia region. Dominion Energy provides electricity to parts of Virginia, North Carolina and South Carolina, and natural gas to Utah, Idaho and Wyoming, West Virginia, Ohio, Pennsylvania, North Carolina, South Carolina and Georgia.

Amazon also announced a new deal with utility company Energy Northwest to finance the development, licensing and construction of four SMRs in Washington state. Energy Northwest is a public energy joint operating agency in the northwestern United States to produce power with a strong commitment to nuclear power.

According to Yahoo Finance, Amazon is investing $500 million in X-energy to develop these innovative nuclear reactor technologies. X-energy is a privately held American nuclear reactor and fuel design company. It is developing a 4th generation gas-cooled, high-temperature, gravel-bed nuclear reactor design. It has received funding from private sources and various government grants and contracts, notably through the Department of Energy’s (DOE’s) Advanced Reactor Concept Cooperative Agreement in 2016 and its Advanced Reactor Demonstration Program (ARDP) in 2020. The CEO X-energy’s Clay Sell says the investment will be used to complete the design of the standard SMR plant and build the first fuel facility at the company’s Texas location.

Amazon’s decision to invest in SMR aligns with a growing trend among tech giants to adopt nuclear power as part of their sustainability strategies. Microsoft and Google have also explored nuclear technologies, reflecting a broader industry shift toward clean energy solutions that can provide reliable power to support the massive power demands of cloud computing and e-commerce. Open AI’s Sam Altman also invested in Oklo, a company developing small modular nuclear reactors.

Amazon CEO Andy Jassy said: “Our investment in small modular reactors underscores our commitment to clean energy and our determination to lead by example. SMRs represent a reliable and scalable solution that can provide consistent power while significantly reducing carbon emissions. This partnership will help us build a sustainable future for our customers, employees, and communities.”

Industry experts welcomed Amazon’s move, noting that SMRs could play a critical role in the transition to a low-carbon economy. “The deployment of small modular reactors by companies like Amazon signals a new era for clean energy. It shows that the private sector is willing to invest in innovative technologies to meet their sustainability goals,” said Dr. Sarah Thompson, an energy policy analyst.

Despite the excitement, many challenges lie ahead. Nuclear power, while clean, has faced public concerns about safety and waste management. SMR proponents argue that these new models address many of these issues, with improved safety features and lower accident risks. Amazon is committed to working closely with regulators and local communities to ensure the safe and responsible deployment of this technology.

The company’s investment in SMR is part of a larger effort to diversify its clean energy portfolio, which already includes significant investments in wind, solar and battery storage projects around the world. Amazon has committed to powering its operations with 100% renewable energy by 2025, five years ahead of its original goal.

As Amazon embarks on this ambitious journey, it sends a clear message: large corporations can and should play a critical role in driving the adoption of clean and innovative energy technologies. If successful, this move could pave the way for wider acceptance of SMR and inspire other companies to explore nuclear power as a viable path to sustainability.

There are currently various designs and concepts for SMRs, including pressurized water reactors, high-temperature gas-cooled reactors, and molten salt reactors, among others. Each design has its own unique features and advantages, and their commercial implementation is ongoing, with several projects in various stages of development and regulatory approval. Small modular nuclear reactors have the potential to play a significant role in the future of nuclear power, providing a flexible and safer option for clean and reliable power generation. They can be built in factories and transported to the place where they will be installed and operated. The development of SMR is seen by many as a potential way to address the challenges of climate change.