X-Energy secures expanded contract from DoD for Project Pele initiative

X-Energy Reactor Company, LLC (X-Energy), a key player in the advanced small modular nuclear reactor market, has announced an expanded contract with the U.S. Department of Defense (DoD). Under the department’s Project Pele initiative, X-Energy will receive $17.49 million to further develop a transportable nuclear microreactor prototype for use in remote military locations, with potential civilian applications down the road.

Project Pele: Focusing on Fourth-Generation Nuclear Microreactors

Launched by the DoD’s Strategic Capabilities Office (SCO) in 2019, Project Pele aims to create a fourth-generation nuclear microreactor that can deliver carbon-free energy in remote and challenging environments. X-Energy was among the two teams selected to submit a final design to the DoD in 2022, solidifying its pivotal role in the advancement of nuclear energy technology.

Building on First-Phase Success, X-Energy Looks Ahead

X-Energy President Harlan Bowers, who spearheaded the initial phase of Project Pele, expressed the company’s intent to build upon its early achievements. “Our next phase will focus on refining our design, prototype testing, and initiating reviews with the U.S. Nuclear Regulatory Commission (NRC),” said Bowers. The aim is to develop a cost-competitive microreactor that can rival fossil fuel-based power generation.

Addressing DoD’s Growing Energy Demands with Sustainable Solutions

The DoD’s energy consumption—estimated at around 30 Terawatt-hours of electricity and over 10 million gallons of fuel per day—is expected to increase. X-Energy’s transportable microreactor aims to meet this rising demand while offering a resilient, carbon-free energy source that simplifies logistical challenges for the department.

Dual Benefits: Military Use and Commercial Pathway

The expanded contract with the DoD not only satisfies military requirements but also opens the door for commercial adoption of microreactor technology. X-Energy’s microreactor design, capable of generating three to five megawatts, promises to be cost-competitive with remote diesel power. This positions X-Energy for broader deployment possibilities, including decarbonizing off-grid, remote, or small-scale grid needs.

Future Possibilities: What Project Pele Means for Resiliency Needs

Project Pele Program Manager Dr. Jeff Waksman stressed the extraordinary energy density of nuclear reactors. “By developing two unique designs, we offer a broad range of options for both installation and operational energy applications in the near future,” Waksman said.