Virginia’s power demand surge sparks Dominion Energy and Amazon’s nuclear partnership

As Virginia’s energy demand surges at a rate of over 5% annually, Dominion Energy Virginia and Amazon have signed a Memorandum of Understanding (MOU) to explore the development of Small Modular Reactors (SMRs). With power needs expected to double in the next 15 years, the collaboration seeks to implement SMRs as a sustainable and reliable solution to meet the region’s growing energy requirements.

Dominion’s Comprehensive Approach to Virginia’s Energy Needs

Dominion Energy’s strategy involves an ‘all-of-the-above’ energy mix, incorporating offshore wind, solar, battery storage, natural gas, and now, the exploration of SMRs. As part of this initiative, Dominion Energy aims to bolster its capacity to meet the growing energy demand while reducing carbon emissions. SMRs, offering around-the-clock carbon-free power with a smaller footprint and lower capital costs than traditional nuclear reactors, are central to this vision.

Innovative SMR Development Strategy and Cost Mitigation

The agreement highlights the companies’ plans to explore innovative development and financing strategies for SMRs, minimizing costs and risks for both customers and investors. Dominion Energy’s Chair, President, and CEO, Robert M. Blue, stated that this partnership with Amazon and other technology giants builds on their commitment to developing carbon-free energy. Blue emphasized the importance of advancing SMRs with minimal rate impacts for residents and reduced development risks.

Amazon’s Commitment to Net-Zero Operations

Amazon is actively pursuing carbon-free energy solutions as part of its goal to achieve net-zero carbon across its operations by 2040. Kevin Miller, Amazon’s Vice President of Global Data Centers, stressed the importance of nuclear energy as a safe and scalable power source, aligning with Amazon’s long-term sustainability objectives. He expressed excitement about the partnership with Dominion to explore the possibilities of SMRs, which could help address climate change and energy needs simultaneously.

Political Endorsements and Virginia’s Nuclear Innovation Hub

Governor Glenn Youngkin endorsed the partnership, aligning it with Virginia’s ‘All-American, All-of-the-Above’ energy plan. He underscored the importance of nuclear technology in positioning the state as a leader in energy innovation. U.S. Senator Mark Warner echoed these sentiments, pointing to Virginia’s established expertise in nuclear energy as a key factor for the state’s readiness to host SMR projects.

Senator Tim Kaine also expressed enthusiasm for the agreement, highlighting Virginia’s potential for clean energy job creation. He reaffirmed his support for clean energy incentives through the Inflation Reduction Act, encouraging other companies to leverage these opportunities.

Dominion Energy’s SMR Feasibility Study at North Anna Power Station

Dominion Energy is not committing to SMR development just yet; however, it is taking preliminary steps by issuing a Request for Proposals (RFP) to evaluate SMR technologies at its North Anna Power Station in Louisa County, Virginia. This step is crucial in assessing the feasibility and readiness of SMRs for future deployment.

Amazon’s Investment in X-energy’s Advanced SMR Technology

In addition to its partnership with Dominion Energy, Amazon has invested in X-energy, a leader in next-generation SMR technology. X-energy’s reactors will be used in a project with Energy Northwest, with Amazon’s investment supporting the development of over five gigawatts of nuclear energy capacity. The company has also signed an agreement with Dominion to explore SMR projects near the North Anna nuclear power station, aiming to provide at least 300 megawatts of carbon-free power to the region.