The Department of Energy has closed a loan of up to $1.9 billion to NextEra Energy to fund the restart of the Duane Arnold Energy Center in Iowa. The financing comes through the Office of Energy Dominance Financing, the agency arm previously known as the Loan Programs Office, and covers one of three US nuclear plants the office is backing for a return to service.
Duane Arnold is a 615 MW single unit plant in Palo, in Linn County. It shut in August 2020 after 45 years of operation, following damage from a derecho, when repair costs were judged uneconomic. It was the only nuclear station in Iowa. NextEra is targeting a return to commercial operation in the first quarter of 2029, subject to Nuclear Regulatory Commission approval.
DOE said on September 9 that the restart will create about 1,500 construction jobs and support more than 450 permanent positions once the plant is running. NextEra has a 25 year power purchase agreement with Google covering output from the site, and the company has agreed to acquire the combined 30 percent interest held by Central Iowa Power Cooperative and Corn Belt Power Cooperative, which would leave NextEra as sole owner.
The loan follows a June commitment from the department of as much as $17.5 billion toward five projects intended to deploy 10 large commercial reactors. Those projects pair Westinghouse with utility partners on AP1000 units, with each side required to commit $500 million in equity before drawing loan funds.
Source: POWER Magazine - https://www.powermag.com/doe-closes-1-9-billion-loan-to-restart-duane-arnold-nuclear-plant/