Alphabet (GOOGL.US) Seeks to Deploy Small Nuclear Reactors New Era (NEE.US) is optimistic about co-site deployment opportunities

The Zhitong Finance App learned that Ruth Porat (Ruth Porat), chief investment officer of tech giant Alphabet (GOOGL.US), said that the company is seeking to deploy smaller nuclear reactors through a deal with Kairos Power to reduce the cost of building new nuclear reactors.

The agreement was signed in October last year as part of Alphabet's efforts to meet the growing power demand for artificial intelligence work. Under the agreement, the first small modular reactor is expected to be put into service in 2030, followed by the deployment of more reactors by 2035.

At S&P Global's CERA Week conference, Borat pointed out that cost overruns and delays hinder new nuclear projects. She said companies need to act quickly to build new nuclear power plants and replicate the construction process to reduce the cost curve.

“If we don't start in a centralized way now and replicate some of them, which is why Kairos's multi-batch bonds are an important proof point, we won't be able to reduce the cost curve.”

John Ketchum, CEO of New Era Energy (NEE.US), said nuclear power is unlikely to become a power solution in 2035 or later. The company is the world's largest producer of wind and solar energy and has five nuclear power plants.

As for small modular reactors, Ketchum said there are “huge opportunities for co-location deployment” at existing plants in the new era. “But the industry needs to identify which companies have the right technology.”

Currently, there are approximately 95 companies in the field of small modular reactors. “This really needs to be cut down to 5 or 10,” Ketchum added.