Nuclear firm Terrestrial Energy secures agreement to employ natural gas as a temporary solution towards Small Modular Reactors (SMRs)

In a significant move for the tech industry, reactor startup Terrestrial Energy and energy services giant Ameresco have announced a partnership to explore the use of gas-fired power in the short term, with the potential to transition to Terrestrial's small modular nuclear reactors (SMRs) in the future.

The partnership could give Terrestrial a boost in the increasingly crowded SMR sector. According to Simon Irish, the CEO of Terrestrial Energy, the choice between waiting for new nuclear and relying on gas is a false one. He believes that this partnership offers a viable solution for companies seeking sustainable power sources, especially those in the tech industry.

Terrestrial Energy's system is able to generate more heat at a much lower pressure due to the use of molten salt as a coolant, which can safely reach higher temperatures than water. This design also keeps the nuclear safety equipment separate from the steam-supply system, allowing for potential heat source swaps.

Ameresco's experience in business partnerships that deliver solutions to the federal government is an important additional capability they bring to the table. Greg Caplan, the vice president of federal business development at Ameresco, stated that Terrestrial's design accounts for a potential gas-fired bridge to nuclear, making it an attractive option for companies looking for a transition path.

Not everyone is convinced, 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 federally-owned Tennessee Valley Authority is planning to build the first U.S. versions of GE-Hitachi Nuclear Energy 300-MW SMR in the coming years. Meanwhile, major tech companies, such as Google and Amazon, have recently backed SMR developers. Google backed the SMR developer Kairos, promising to buy 500 megawatts of power for its data centers, while Amazon bought a stake in the SMR developer X-energy.

The partnership between Terrestrial Energy and Ameresco is at an early stage and kicks off a due diligence process to assess the viability of the gas-fired bridge to Terrestrial's SMR. Ameresco recently hired its first director of nuclear partnerships to oversee future atomic energy projects.

It's important to note that the agreement does not include any mutual investments. There are no publicly available details about specific companies negotiating with Terrestrial Energy regarding short-term fossil gas coordination for power supply to data centers, industrial sites, or off-grid government facilities, with the option to replace fossil energy by Terrestrial Energy's molten salt reactors.

In March, the Trump administration reopened a $900 million fund to buy power from SMRs. This move, along with the growing interest from tech giants and partnerships like the one between Terrestrial Energy and Ameresco, suggests that the future of powering data centers and industrial sites may be greener than many expect.

Nuclear firm Terrestrial Energy secures agreement to employ natural gas as a temporary solution towards Small Modular Reactors (SMRs)