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Just don’t confuse them with SMRs.

When politicians tell the CEO of Radiant that they love small modular reactors, he groans inwardly and just keeps smiling.
Doug Bernauer’s Radiant is not trying to make SMRs. His company — a VC-backed startup currently in the pre-application phase with the Nuclear Regulatory Commission — is designing a portable nuclear microreactor, which is intended to replace diesel generators. The politicians don’t always know the difference, Bernauer told me.
The SMR-microreactor confusion is common outside the world of nuclear. While they are both versions of advanced nuclear technologies not yet built in the United States (all of our nuclear power comes from big, old-fashioned plants), SMRs and microreactors have different designs, power outputs, costs, financing models, and potential use cases.
Unlike SMRs, microreactors are too small to ever become key energy players within a full-sized grid. But they could replace fossil fuels in some of the hardest to decarbonize sectors and locations in the world: mines, factories, towns in remote locations (especially Alaska and northern Canada), military bases, and (ironically) oil fields. For those customers, they could also make power supply and prices more consistent, secure, and dependable than fossil fuels, whose fluctuating prices batter industrial sectors and the residents of remote towns without discrimination.
Perhaps even more importantly, microreactors’ small size and comparatively low price could make them a gateway drug for new nuclear technologies in the U.S., helping companies and regulators build the know-how they need to lower the risk and cost for larger projects.

The big problem with this idea? No functional commercial nuclear microreactor actually exists. Industry experts cannot say with confidence that they know what the technological hurdles are going to be, how to solve them, or what it’s going to cost to address them.
“My crystal ball is broken,” John Parsons, an economist researching risk in energy at the Massachusetts Institute of Technology, said when I asked him whether he believed microreactors would make it through the technical gauntlet. “I’m hopeful. But I’m also very open-minded. I don’t know what’s going to happen. And I really believe we need a lot of shots on goal, and not all shots are going to go through,” he said.
Recent advances in both technology and regulation indicate that in the next few years, we should have some answers.
Private companies are expecting to conduct their first tests in about two years, and they are in conversations with potential customers. Radiant is hoping to test at the Idaho National Laboratory in 2026; Westinghouse and Ultra Safe Nuclear Corporation have contracts to test microreactors there as well. BWX Technologies is currently procuring the parts for a demonstration reactor through the Department of Defense’s prototype program — called Project Pele — and plans to test in about two years; X-energy signed an expanded contract in 2023 to build a prototype for Project Pele as well. Eielson Air Force Base in Alaska is commissioning a pilot microreactor. Schools including Pennsylvania State University and the University of Illinois have announced their interest as potential customers. Mining companies and other industry players in Alaska regularly express interest in embracing this technology.
The government is also quietly smoothing the way, removing barriers to make those tests possible. On March 4, the Nuclear Regulatory Commission released a new draft of licensing rules that will shape the future for these microreactors, and early March’s emergency spending bill included more than $2.5 billion repurposed for investment in a domestic supply chain of the type of nuclear fuel most advanced reactors will require.
“If we are truly committed as a nation to sticking to our climate goals, then we will absolutely get to a place where there are a bunch of microreactors replacing otherwise difficult to decarbonize sectors and applications,” said Kathryn Huff, the head of the office of nuclear energy at the Department of Energy.
Eric Gimon, a senior fellow at the nonprofit Energy Innovation, was a microreactor skeptic until about a month ago. His own recent research has made him far more optimistic that these microreactors might actually be technologically feasible, he told me when I reached out for an honest critique. “If they can make (the microreactors) work, it’s attractive,” he said. “There are a lot of industrial players that are going to want to buy them.”
“If your goal is to produce power at 4 cents per kilowatt hour, why would you buy any power that’s way more expensive than what you need? You do it because if that adds diversity to the portfolio and less variance, then you can get an overall portfolio that is lower cost or a lower risk for the same cost,” he told me.
Everyone I spoke to in the industry began our conversation with the same analogy: In the world of nuclear, full-size power plants are to airports what microreactors are to airplanes. Just as it's easier to build and regulate an airplane than an entire airport, in theory the microreactors should be built in a factory, regulated and licensed in the factory, and then rented out to or sold to the end user. An airport requires approvals specific to the construction site, a huge team of people employed for a long time to construct it and then another team to maintain it, and complicated financing based on the idea that the airport could be used for 50 or more years; a full-scale nuclear plant is the same. An airplane can basically be ordered online; a microreactor should be the same.
“They are sized to be similar to that kind of scope, where you could really consolidate a lot of the chemical and manufacturing oversight to a single location rather than moving thousands of people to a construction site,” Huff told me.
Microreactors should produce relatively small amounts of power (a maximum of 10-20 megawatts) and lots of heat with a tiny amount of nuclear fuel. They are usually portable, and if they aren’t portable they require a limited amount of construction or installation. Because it should not be possible to handle the fuel once it leaves the factory (most of the proposed reactor designs set the fuel deep into a dense, inaccessible matrix), these reactors wouldn’t require the same safety and security measures on site as a nuclear power plant. They’re easily operated or managed by people without nuclear expertise, and their safety design — called passive safety — should make it technically impossible for a reactor to meltdown.
“The excess reactivity is so small that you actually can’t get the reactor hot enough that you could start damaging the fuel. That’s something unique about the microreactor that would not necessarily be true for other types of nuclear,” Jeff Waksman, the program manager for the Department of Defense’s Strategic Capabilities Office, told me.
Microreactors should also cost on the order of tens of millions of dollars, not hundreds. That’s low enough that a company, university, town, or other similarly-sized entity could buy one or more of them. Because they’re cheaper than traditional nuclear, they don’t require lenders to take big risks on money committed over a very long period of time. If a mining company wanted to replace a diesel generator with one of these, they should be able to finance it in exactly the same way (a loan from the bank, for example). This makes their financial logic quite different from SMRs, which can suffer from some of the same problems as full-size nuclear power plants (see: NuScale’s recent setbacks).
“All of the things that contribute to a faster innovation cycle are true for microreactors compared to larger reactors. So you can just — build one,” said Rachel Slaybaugh, a partner at DCVC and a board member at Radiant, Fervo Energy, and Fourth Power.
Because microreactors max out at around 20 megawatts of energy, the economies of scale that eventually bring down energy prices for full-scale nuclear power can’t be replicated. While Jigar Shah, the director of the loan programs office at the DOE, speculated in a recent interview that costs might eventually go just below 10 cents per kilowatt hour, Parsons is skeptical that anyone could provide a practical cost estimate. It’s absolutely going to cost more than either large reactors or SMRs, Parsons said.
But cost comparisons to other types of nuclear technology aren’t practical, according to Slaybaugh. “You are going to be able to command a cost parity with diesel generators. It’s easy to get to a point where they make financial sense,” she said. “You can see why someone would pick one: This is not making noise, it’s not making local air pollution, you don’t have to deal with the diesel logistics complexity. You sell it at price parity, and maybe the first few customers pay a premium because they are excited about it.”
That premium price for the initial technology is the largest hurdle raised by every single person I spoke with, from the DOE to analysts and researchers to the different microreactor companies.
But there is one customer already inclined to pay a substantial premium: the Department of Defense. The U.S. military has greater resiliency and security needs than other consumers when it comes to its power supply, making the cost of microreactors more palatable. (And it doesn’t hurt that the taxpayer already foots the bill for enormous defense contracts, including for aircraft carriers and submarines powered by nuclear reactors). It’s common for technological innovations (think the internet, GPS, advanced prosthetics) to begin with the military and then expand outward to the consumer. Project Pele and the requests for proposals at Eielson Air Force Base both indicate that the pathway might be one for microreactors, according to Parsons.
For the president of BWXT Advanced Technologies, the Department of Defense’s decision to commission his company’s microreactor for Project Pele removed his last doubts that these microreactors would eventually be built. “The DOD being the first mover has extreme advantage for the country, and for eventually the commercial industry,” Joseph Miller told me. “The first mover was the barrier, and now it’s just 1,000 things that we’re working on all day every day to make it real, and there’s no gotcha out there that I see. That wasn’t the case when we were doing the design work, but now we’re making procurements to be able to assemble and deliver the reactor.”
Regardless of whether Miller’s optimism is well-founded, the experience gained in trying to make them happen is invaluable for a nuclear industry that’s been stuck in the mud for far too long.
“I've been talking with the federal government about the fact that there’s broader value in terms of getting wins on the board for the nuclear sector and getting the industry more experienced with building new things in a way that isn't quite so complicated,” Slaybaugh said. “Let’s have them build a thing that’s small and kind of cheap, and then they can go build a bigger thing that’s a little more expensive and a little more complicated. Let’s get some real reps in with microreactors.”
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Current conditions: The Pineapple Express, an atmospheric river originating in the Pacific near Hawaii, is arriving in the Southwest laden with heavy rain that’s set to flood the region • Indonesia has the worst air quality in the world as forest fires rage along Sumatra’s southern coast • A cross-country storm will soak much of the United States on Tuesday’s Election Day.
The Senate’s grand compromise to simplify federal permitting on energy projects would likely drop emissions slightly as the benefits to accelerating deployments of clean energy infrastructure outweigh the boost the legislation could give to fossil fuels. Even under the worst-case scenario, emissions remain on the same trajectory as today. That’s according to a hotly anticipated new analysis by the Rhodium Group, the consultancy whose U.S. emissions estimates are among the most widely cited in American politics. The report, shared first with my colleague Emily Pontecorvo, found that provisions in the Bipartisan American Affordability and Jobs Act largely counteract each other on climate. The bill makes building transmission lines much easier, a key step to patching more renewables onto the grid. But it also makes new gas pipelines simpler to permit, clearing the way for a buildout of the infrastructure for the fossil fuel already dominating U.S. electricity and heating systems. Still, under the best-case scenario, the legislation could cut U.S. economy-wide emissions by 5% below where they would otherwise go in 2040. The bill could also slash energy bills by $78 per year and support construction of more than 200 gigawatts of clean energy capacity, as compared to a world where it didn’t pass. The Rhodium report is at least the second analysis yet to find that the bill could modestly lower emissions. The first, as I reported last week, came from the think tank Resources for the Future, which saw a slight drop in power-sector emissions relative to a world without BAAJA.
If overhauling national permitting rules to make building green energy infrastructure easier doesn’t work to lower emissions, traditional negotiations in favor of regulations that can deliver cuts looks no more promising. Two weeks of United Nations-led talks in Armenia ended Saturday without a settled approach to meeting 2030 deadlines for preserving more nature. “We don’t need to spend more to close the biodiversity funding gap, we need to spend better,” Marina Von Weissenberg, a Finnish senior ministerial advisor, said in a statement. “Governments have a real opportunity here to reshape public spending with future generations in mind, but they can’t do it alone. International coordination is key to giving governments the confidence to lead change.”
Last week, my colleague Katie Brigham published a detailed feature highlighting China’s tightening grip over the global supply chain for electrolyzers, the technology that zaps water with electricity to separate the molecule’s hydrogen from its oxygen and harvest the former as fuel. Keen readers of this newsletter recognize the story. Even before the Iran War, China had beefed up its public support for green hydrogen and related technologies. After the conflict constricted the flow of oil through the Strait of Hormuz, the People’s Republic redoubled its efforts. Quite literally. New data from the National Energy Administration shows that investments into the hydrogen industry doubled in the first nine months of this year, according to Hydrogen Insight.
Fermi America went public in a gangbusters initial public offering last year as the company, with a board of directors including former Texas governor and U.S. Secretary of Energy Rick Perry, pledged to build the world’s largest data center and power the facility with gas and four large-scale Westinghouse AP1000 nuclear reactors. In April, the chief executive and chief financial officer quit. The board room drama continued into the next month. The company’s stock recovered somewhat over the summer as investors bet on a turnaround pegged to a series of deals with companies looking to lease space on its future servers. But fresh chaos enveloped the startup Friday when The Texas Tribune reported that Perry had failed to earn enough support from the board of directors to win reelection to his seat.
In a statement posted to X on Friday evening, Fermi said that neither Perry nor investor Jeffrey Stein had been removed from the company’s board. “In fact, both Governor Perry and Jeffrey Stein received a majority of the votes cast by shareholders,” the statement read. “Let’s be clear: Governor Perry and Mr. Stein remain members of Fermi’s Board of Directors and will continue serving until their successors are duly elected. Both remain eligible for reelection.”
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If you thought the fine particulate matter from last year’s catastrophic Los Angeles firestorm was bad, you weren’t thinking imaginatively enough about just how dangerous all that airborne material could be. A new study published in the journal Science Advances suggests that upward of 7 million people were exposed to high levels of airborne lead and other toxic metals released when homes and vehicles caught flame. The January 2025 Eaton inferno that destroyed more than 9,400 buildings and killed 19 people spewed 80 times the normal concentration of lead found in the atmosphere through a plume that settled over 70% of the Los Angeles metropolitan area. “I can envision that in the future we have these evacuation zones for smoke exposure as well,” Haroula Baliaka, the study’s lead author, who was a PhD candidate at Caltech last year, told Bloomberg. “Unfortunately, this is not a one-time event. It’s a new reality and we need to adapt to it and we need to do it sooner rather than later.”
The findings come a week after a study published in JAMA Pediatrics showed a link between wildfire smoke exposure during pregnancy and autism diagnoses in children. The research from Rutgers University examined 893,212 mother-child pairs enrolled in Medicaid, with children born between 2007 and 2014. Each increase of 0.75 micrograms per cubic meter in average concentrations of wildfire-related air pollution during pregnancy was associated with a 30% higher risk of a subsequent autism diagnosis. Exposure in the second and third trimesters had the highest risk. “Wildfire smoke can travel far beyond the communities where fires are burning, and exposure may occur even when smoke is not visible,” Stefania Papatheodorou, an epidemiologist at the Rutgers School of Public Health and lead author of the study, said in a press release. “Our findings highlight the importance of awareness of wildfire events and their potential effects on air quality during pregnancy.”
The United Kingdom is building out more than 10 gigawatts of offshore wind as London looks to shore up its electricity supplies amid the global energy shock. But Chancellor of the Exchequer John Healey said he would veto any offshore wind projects that don’t lower bills. While clean power is “how we break the grip of international gas prices on our bills,” he said the infrastructure “has to come at the right pace, in the right places, with the grid to carry it.” The statement fueled what The Guardian called “concerns that the government is moving away from the pro-renewables agenda.”
Meanwhile, the U.S. midterms aren’t the only election this week. In Sunday’s runoff election, Bulgaria’s pro-Russian acting President Iliana Iotova appeared to eke out a victory over the former prime minister Andrei Gyurov, a pro-Western banker. Her win unites the government with her close ally, Prime Minister Rumen Radev, ensuring stronger support for the leader’s two signature energy policies. One, a plan to build a pair of Westinghouse AP1000s at the Kozloduy nuclear plant, is scheduled to advance to the next planning stage next year. The other, the easing of sanctions on Russian uranium to ensure a supply of fuel for the plant’s existing reactors, looks likely to continue under Iotova’s friendly diplomacy with the Kremlin.
William Nordhaus, the pioneering Yale University economist who won the Nobel Prize in 2018 for integrating climate change into macroeconomic analysis, has died at 85 following a battle with an aggressive form of brain cancer. His nephew, Ted Nordhaus of the Breakthrough Institute, referred to his father, Robert Nordhaus, as “the original environmental lawyer and Bill as the original environmental economist,” he wrote in a blog post after his uncle’s passing. “It is safe to say that the Nordhaus brothers were doing environmental law and economics, respectively, long before either label existed. Not bad for two kids who grew up in the intellectual hotbed of Albuquerque, New Mexico, population 40,000, during and after the second world war.” Their legacies are something of the Nordhaus family brand: Pragmatism. May his memory be a blessing.
Even in the worst-case scenario, BAAJA wouldn’t increase emissions, an analysis by the Rhodium Group concludes.
The bipartisan permitting reform bill is likely to slightly cut greenhouse gas emissions and lower electricity bills by 2040 — or at worst leave emissions on the same trajectory that they are on today — as compared to the status quo, according to a new analysis of many of its provisions by the Rhodium Group, an independent research firm.
The analysis examines the policies in the Bipartisan American Affordability and Jobs Act, or BAAJA, that would have the most-clear cut effects on climate pollution and the energy system. It is the most comprehensive account of the bill’s effects on emissions so far, although it does not examine all of its provisions.
The bill is hard to analyze because — unlike recent partisan energy bills, such as the Inflation Reduction Act or President Trump’s tax and spending bill — its effects on the climate are more ambiguous and often seem to counteract each other. BAAJA will make it easier to build not only long-distance transmission lines, which are essential for clean energy, but also natural gas pipelines, which can expand fossil fuel production.
Yet the climate benefits likely outweigh or balance out the harms, at least among the studied policies, the report finds. In the best case scenario, the bill could cut U.S. economy-wide emissions by 4%, reduce energy bills by $78 per year, and drive more than 200 gigawatts of new clean energy capacity by 2040, compared to status quo policy. In a worst case scenario, greenhouse gas emissions would remain unchanged on their current trajectory.
The results should be viewed as more directionally instructive than a precise accounting of the legislation, Ben King, an energy and climate director at Rhodium, told me.
“We don’t see emissions increasing because of the bill,” King said. “This bill should drive some emission reductions, it should drive some more clean energy on the grid, and it should drive electricity bills down. And given the complexity of the bill, that’s what we can say at this point.”
The analysis does not look at the bill’s permitting certainty provisions, which Democrats initially sought to stop President Trump’s war on wind but have become one of its thorniest sections. Rhodium’s modeling is also a crude tool for assessing transmission policy, since the model can look only at economic inputs such as supply and demand, and not the physical reality of the U.S. grid, such as where transmission lines run or where the bottlenecks are.
It is the second analysis to find that the bill could modestly lower carbon pollution. A more limited report focusing only on the power grid, published last week by the think tank Resources for the Future, found the legislation could cut electricity emissions by 6% while reducing electricity system costs by $350 billion through 2050.
The effects of the bill may sound small, but BAAJA is not a climate bill. It’s not engineered to reduce reliance on fossil fuels or boost clean energy technologies. Its overarching purpose is to address various federal bottlenecks that bog down America’s ability to build stuff, whether that’s a pipeline or a highway or a power line or a solar farm. So it’s not entirely surprising that it’s not expected to have a dramatic effect on emissions.
The reason it’s a priority for Senate climate champions is that many of its provisions are important precursors to decarbonizing the U.S. economy more quickly. By enabling faster expansion of the power grid, the bill would put the country in a much better position to transition to clean energy. After Joe Biden’s big climate bill, the Inflation Reduction Act, passed in 2022, Princeton University researchers found that the country’s slow buildout of transmission lines would be a major obstacle to gleaning the law’s benefits. Unless the country more than doubled the rate of transmission expansion, they wrote, more than 80% of the IRA’s emission reduction potential by 2030 would be lost.
BAAJA could nearly triple the build rate of high-voltage transmission, the Rhodium Group found, from an average of about 0.7 terawatt-miles added per year over the past decade to an average annual pace of 1.9 to 2.6 terawatt-miles through 2040. Because Republicans and President Trump have repealed so many of the IRA’s provisions, this won’t drive as much clean energy as the Princeton researchers expected, but Rhodium estimates that by 2040, BAAJA would help between 17 and 249 gigawatts of clean resources get built compared to a world without it.
The growing grid is the main reason why the bill cuts energy costs, because it enables more lower-cost resources to connect to the grid. The bill’s requirement that data centers pay the full cost of connecting to the grid also puts downward pressure on electricity rates.
“If your goal is to do climate policy in the future, this is an important down payment to making progress there,” King said.
The authors studied the bill’s provisions under a range of economic assumptions, including a “best case” scenario in which clean energy gets cheaper and easily outcompetes natural gas, and a “worst case” scenario where natural gas prices collapse and the inexpensive fuel keeps dominating the U.S. energy system.

The authors limited their analysis to the bill’s provisions that speed up transmission line and natural gas pipeline permitting. They assumed that when you make it easier to approve transmission lines, the lines get cheaper to build and get built more quickly. The same goes for gas pipelines. Then they looked at how the energy system would respond. Would we build more power plants? Would there be more natural gas production? Where will that gas go?
The caveats, aside from omitting the bill’s “project certainty” provisions, are that they did not account for policies that support geothermal energy, virtual power plants, advanced transmission technologies, or the ways in which the bill would reduce congestion on the grid — all of which could result in fewer emissions. At the same time, the modeling assumes that all of the data centers that get built between now and 2040 connect to the grid, even though today, many data centers are planning to run on inefficient off-grid natural gas plants. That means this modeling likely underestimates emissions from data centers. (Although the authors did a separate exercise that went deeper into data centers, which I’ll explain shortly.)
The report also limited its analysis to the United States. While the modeling found that liquified natural gas exports would increase by 8% to 15% under BAAJA, the authors did not account for how those exports could affect the energy mix or emissions in the rest of the world.
They found that the bill’s changes to the Clean Water Act and the National Environmental Policy Act would enable more gas pipeline development, which, in isolation, would increase emissions relative to a world without BAAJA. More pipelines means more production of oil and natural gas, which means higher methane and CO2 emissions throughout the fossil supply chain. Under a worst case scenario, they estimate a 4% increase in the amount of new gas capacity, although gas-fired generation as a whole increases by less than 1% in 2040. Even then, emissions would simply be flat compared to current expectations.
“On net, the emissions increases that we see there are outweighed by the emissions benefits that come from the transmission provisions of the bill,” King said.
The report also studied how BAAJA might affect data center emissions. Its “base case” scenario — which includes all the analysis I’ve shared with you so far — assumes data centers will make up about 17% of electricity demand by 2040. That figure already supposes huge growth in data center energy consumption, because data centers only use about 5% of U.S. electricity today.
But what if data center demand grows even faster than that? The authors modeled two additional scenarios to see what would happen if data center electricity demand instead accounted for more than a quarter of U.S. electricity demand in 2040.
While BAAJA would make it easier for data centers to connect to the grid, it also includes ratepayer protection provisions that would make it more expensive to do so — roughly 10% more for a 1 gigawatt data center, Rhodium estimates. Determining whether that will drive developers on-grid or off-grid was beyond the scope of the analysis, so the modelers looked at the two extremes — a world where all additional data center demand hooks up to the grid and one where none of it does.
For the on-grid scenario, whether or not that additional demand is met with mostly gas plants or cleaner sources largely depends on the price of fossil versus clean generation. But even if most of the demand was met by natural gas plants on the grid, emissions would still be 30% lower than if it was met by natural gas plants off the grid, Rhodium found.
Editor’s note: This article originally misstated the scope and timing of electricity systems savings in the Resources for the Future study. It has been corrected in this version.
And more of the week’s top fights around development.
1. Richland Parish, Louisiana – Gird your loins for the coming fight over the Meta Hyperion data center’s gas pipeline.
2. Spartanburg County, South Carolina – I have one last data center race to tell you to watch on Tuesday: South Carolina’s 4th, on the northern rim of the state.
3. Goodhue County, Minnesota – Google reached a settlement with an environmental group suing to stop its data center in the small southern Minnesota town of Pine Island, resulting in what local press are saying will be the Land of 10,000 Lakes first state-level environmental review of a data center project.
4. Trumbull County, Ohio – Ohio looks like it just got a tad friendlier for data center opponents.