The U.S. Department of Energy finalized a $1.9 billion loan to NextEra Energy on September 8, closing the financing needed to restart the Duane Arnold nuclear plant in Linn County, Iowa. The 615-megawatt facility shut down in 2020 after a wind storm damaged its cooling tower, though the closure had already been planned for economic reasons. NextEra now targets a 2029 restart.
Google will be the primary buyer of the plant's output under a 25-year electricity supply agreement, using the power to support its expanding cloud computing and AI data center operations in Iowa. A DOE spokesperson said the loan will be repaid with interest by the U.S. taxpayer, adding that hyperscale technology companies, not ratepayers, are financing the new generation capacity.
A study by Strategic Economic Research projected the restart could generate more than $9 billion in economic benefits for Iowa over 25 years. DOE estimates the project will support about 1,500 jobs during refurbishment and more than 460 permanent positions once the plant returns to service.
Duane Arnold is the third shuttered nuclear plant to secure DOE loan financing for a restart under the current federal energy program, joining efforts at Constellation's Crane Clean Energy Center in Pennsylvania, formerly Three Mile Island Unit 1, and Holtec's Palisades plant in Michigan. NextEra chief executive John Ketchum said the project shows how the country can support rising electricity demand while keeping power affordable for existing customers as data centers strain regional grids nationwide.
Source: Utility Dive - https://www.utilitydive.com/news/nextera-doe-loan-duane-arnold-nuclear-restart/829773/