Nuclear company Terrestrial Energy secures agreement to employ natural gas as a transitional step towards Small Modular Reactors

In a significant development for the nuclear energy sector, Terrestrial Energy, a reactor startup, has announced a partnership with energy services giant Ameresco. The collaboration aims to explore the use of small modular nuclear reactors (SMRs) to power data centers and industrial plants, with a short-term focus on gas power.

The partnership is at an early stage, with a memorandum of understanding initiating a due diligence process. According to Simon Irish, chief executive of Terrestrial Energy, this move is not a choice between waiting for new nuclear and relying on gas, but a strategic step towards a more sustainable future.

Terrestrial Energy's system, which uses traditional low-enriched uranium, is capable of generating more heat at a much lower pressure due to the higher temperature capabilities of molten salt. This design also separates the equipment used for heat transfer from the reactors, providing an added layer of safety.

Ameresco's experience in business partnerships that deliver solutions to the federal government is considered an important addition to the partnership. The company recently hired its first director of nuclear partnerships to oversee future atomic energy projects.

Meanwhile, the federally-owned Tennessee Valley Authority plans to build the first U.S. versions of GE-Hitachi Nuclear Energy 300-MW SMR in the coming years. This move is supported by the Trump administration, which has reopened a $900 million fund to buy power from SMRs.

Major tech companies, including Google and Amazon, have also shown interest in SMRs. Google has backed the SMR developer Kairos, promising to buy 500 megawatts of power for its data centers. Similarly, Amazon has bought a stake in the SMR developer X-energy.

However, critics warn that this reliance on gas will lock in long-term use of a fuel with volatile prices and planet-heating pollution. Companies developing artificial intelligence are relying on fossil gas, spending billions to build out infrastructure. The long-term goal of partnerships like the one between Terrestrial Energy and Ameresco is to eventually replace gas with SMRs, contributing to a more sustainable and reliable energy future.

Ameresco is considering "half a dozen" projects with the federal government and commercial buyers that could benefit from nuclear reactors in the future. The partnership with Terrestrial Energy could give Terrestrial a boost in the increasingly crowded SMR sector. The tech industry, seeking cleaner and more reliable energy sources for large server farms, is closely watching these developments.

Nuclear company Terrestrial Energy secures agreement to employ natural gas as a transitional step towards Small Modular Reactors