The U.S. Department of Energy said on Tuesday it has made an initial selection of 11 companies for a pilot program seeking to develop high-tech test nuclear reactors and get at least three of them to begin operating in less than a year.

Why It’s Important

As artificial intelligence and data centers boost power demand, the U.S. is aiming to develop small nuclear reactors which developers say will be cheaper to build per Megawatt of output than today’s large reactors because the parts could be replicated in factories.

The department’s  move comes after President Donald Trump issued executive orders in May seeking to speed permitting of nuclear reactors and reform the Nuclear Regulatory Commission, an independent agency. The orders  allow the Energy Department to authorize the test reactors,  without the NRC.

Key Quote

“President Trump’s Reactor Pilot Program is a call to action,” said James Danly, deputy energy secretary. “These companies aim to all safely achieve criticality by Independence Day, and DOE will do everything we can to support their efforts.”

Companies Selected

The department selected the following companies: Aalo Atomics., Antares Nuclear, Atomic Alchemy, Deep Fission Inc., Last Energy., Oklo , Natura Resources LLC, Radiant Energy, Terrestrial Energy, and Valar Atomics.

The department said each company will be responsible for all costs associated with designing, manufacturing, constructing, and decommissioning their test reactors.

Hurdles

Small modular and so-called “advanced” nuclear reactors have been talked about in the U.S. for years, but the only ones operating are in China and Russia. Hurdles include getting permits for plants that generate electricity for the grid, developing commercial levels of a new fuel some of the reactors plan to use called high-assay low-enriched uranium, and developing factories for the reactors when none of the plants are yet operating.

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(Reporting by Timothy Gardner; Editing by Alistair Bell)