• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
New Energy

Government watchdog: U.S. slipping in nuclear energy innovation

By
Mark Halper
Mark Halper
Down Arrow Button Icon
By
Mark Halper
Mark Halper
Down Arrow Button Icon
June 27, 2014, 10:31 AM ET
The Three Mile Island Nuclear Plant near Middletown, Pennsylvania. The facility first came online in 1974.
The Three Mile Island Nuclear Plant near Middletown, Pennsylvania. The facility first came online in 1974.Jeff Fusco—Getty Images

The U.S. Department of Energy is stumbling in its obligation to build an advanced nuclear reactor, putting the country at risk of falling behind China, Russia and other nations in developing this vital low-carbon power technology, the government’s fiscal watchdog warned this week.

The Government Accountability Office (GAO) noted in a report released on Monday that the DOE risks missing  a deadline to complete a prototype by 2021, as mandated by the Energy Policy Act of 2005.

Advanced reactors depart from the conventional “light water reactors” that have defined the commercial nuclear industry for its 50-plus years. They are highly regarded for their potential to improve safety, reduce costs, to yield much less nuclear waste, to burn “waste” such as plutonium as fuel, and to reduce the threat of weapons proliferation.

In principle many of them operate at much higher temperatures than traditional reactors, making them not only more efficient as electricity generators, but suitable as sources of clean heat to drive industrial processes that today rely on CO2-emitting fossil fuels. They could also help produce hydrogen—as the 2005 act proposed—and desalinate water. The are generally well suited to the small, affordable sizes that are coming into vogue.

The industry refers to them as “next generation nuclear power” (NGNP) and “GenIV” reactors. There are several basic types, including one that uses liquid fuel and others that use solid fuel shaped as pebbles or bricks rather than today’s solid rods. They tend to rely on coolants other than water such as gas, liquid salts, or liquid lead. Some designs call for using thorium fuel instead of uranium, and many deploy a “fast neutron” cycle that cuts way down on waste and can burn it.

But the DOE’s Office of Nuclear Energy (NE) has dithered in its commitment to any of them, according to the report.

“DOE has not selected initial reactor design parameters or reported to Congress on an alternative date for making this selection,” the GAO stated. “Without doing so, it is not clear when NE is going to take this next step in deploying the NGNP prototype reactor and it risks the project not being completed by the targeted date in 2021.”

It adds: “Not deploying a prototype carries certain risks, including waning U.S. influence in the safe operation of nuclear plants internationally and potential loss of certain knowledge and expertise.”

Many people in the U.S. share that concern. When last week’s opening plenary of the American Nuclear Society annual meeting in Reno met to assess the future of U.S. global nuclear influence, “the general consensus was that right now we’re holding our own, but there was some concern that we might be losing some ground if we don’t start working in earnest to advance these concepts in the U.S.,” ANS president Michaela Brady Raap told Fortune.

She said the U.S. needs advanced reactors “to maintain its position and to be innovative.”

The GAO account cites a report from the DOE’s own Nuclear Energy Advisory Committee noting  that “the United States risks falling behind other countries—such as Japan, Russia, China, South Korea, and France—that are actively working to deploy and commercialize advanced reactors.”

China, for instance, is developing several, including a solid-fuel “pebble bed reactor” cooled by liquid salt, and a “molten salt reactor” that is both fueled and cooled by salt fluids. It expects to build small prototypes by around 2019 and has put princeling Jiang Mianheng, the son of former Chinese president Jiang Zemin, in charge. It is providing what is believed to be $400 million for the two reactors.

The GAO pointed out that the DOE stopped developing a high temperature, gas-cooled reactor in 2011 because it was unable to agree to cost sharing with industry after spending over $500 million starting in 2005.

Since then, DOE funding has been minimal.

The DOE entered a collaboration with the Chinese Academy of Sciences in late 2011 for development of salt-cooled high temperature reactors. China’s Jiang is co-chair of that partnership, along with the DOE’s Assistant Secretary for Nuclear Peter Lyons. As part of that cooperation, the DOE gave $7.5 million to three U.S. universities—the Massachusetts Institute of Technology, the University of California Berkeley, and the University of Wisconsin-Madison. It tapped Westinghouse, the U.S. nuclear unit of Japanese conglomerate Toshiba, as a commercial partner.

Some people worry that the DOE is giving away technology to China that the U.S. developed in the 1960s, when Tennessee’s Oak Ridge National Laboratory (ORNL) built an experimental molten salt reactor. (President Nixon scrapped it in favor of nuclear technologies that yielded plutonium, desirable for bombs during the Cold War, and also for use in future nuclear reactors.) ORNL is part of the collaboration.

The 1960s ORNL work underpins the molten salt reactors under development today around the world. In the U.S. that includes projects at startups Flibe Energy in Huntsville, Ala., and Transatomic Power in Cambridge, Mass. Likewise, almost all of the other advanced reactor designs date back decades, but have never won adequate financial backing from the conservative international nuclear giants like Westinghouse and France’s Areva. (GE Hitachi has developed an alternative reactor it calls PRISM, but it has yet to sell one.)

U.S. advanced reactor companies include General Atomics in San Diego and TerraPower, the Bill Gates-chaired startup. Several companies are developing small reactors that conform to more conventional designs and do not meet “GenIV” descriptions. NuScale Power, and Babcock & Wilcox each won DOE backing of over $200 million over the last year-and-a-half.

Pro-nuclear environmentalists say that the absence of advanced nuclear is striking given nuclear’s potential to help wean the world off of fossil fuels.

One problem is that the Nuclear Regulatory Commission’s focus on conventional reactor safety deters innovation. DOE’s Lyons noted in a June 6 letter to the GAO that “the NRC’s lack of engagement in this area has resulted in significant delay in their delivery of several major regulatory documents which were promised to DOE for delivery in 2013.”

Regulators in other countries could take a more adaptive approach including in Canada where startups including Terrestrial Energy, Northern Nuclear, and Thorium Power Canada are developing reactors. Russia is planning a domestic energy future around fast reactors. China could outpace them all.

“The driver here is not the technologies, but the political will,” said ANS’ Brady Raap.

Money would help too. Proposal: Given that the oil industry could use heat from small reactors to help process petroleum, perhaps it could provide the wherewithal.

About the Author
By Mark Halper
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Why GameStop’s bid for eBay echoes one of the worst business deals of all time
InvestingFinance
Why GameStop’s bid for eBay echoes one of the worst business deals of all time
By Shawn TullyMay 9, 2026
41 minutes ago
These experts made their careers grading travel credit cards and they say you’re being ripped off. It’s a $1.28 trillion crisis
Personal FinancePersonal Finance Evergreen
These experts made their careers grading travel credit cards and they say you’re being ripped off. It’s a $1.28 trillion crisis
By Catherina GioinoMay 9, 2026
58 minutes ago
Companies are abandoning ‘peanut butter’ raises as pay-for-performance takes over the workplace in the AI era
Future of WorkTech
Companies are abandoning ‘peanut butter’ raises as pay-for-performance takes over the workplace in the AI era
By Marco Quiroz-GutierrezMay 9, 2026
60 minutes ago
Asia’s ultra-luxury Capella Hotels brand plans to double its portfolio by 2030, starting with Florence and Riyadh
Travel & LeisureHospitality
Asia’s ultra-luxury Capella Hotels brand plans to double its portfolio by 2030, starting with Florence and Riyadh
By Angelica AngMay 8, 2026
7 hours ago
You’re probably safe from the Hantavirus outbreak, but here’s what you absolutely must not do, experts say
PoliticsCoronavirus
You’re probably safe from the Hantavirus outbreak, but here’s what you absolutely must not do, experts say
By Catherina GioinoMay 8, 2026
12 hours ago
The Best Online Personal Trainers of 2026: In-Depth Workout Coaching at Home
HealthDietary Supplements
The Best Online Personal Trainers of 2026: In-Depth Workout Coaching at Home
By Emily PharesMay 8, 2026
13 hours ago

Most Popular

California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
North America
California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
By Sasha RogelbergMay 7, 2026
2 days ago
'Blue dot fever' plagues musicians like Post Malone, Meghan Trainor, and Zayn as a growing list of artists cancel tours due to lagging ticket sales
Arts & Entertainment
'Blue dot fever' plagues musicians like Post Malone, Meghan Trainor, and Zayn as a growing list of artists cancel tours due to lagging ticket sales
By Dave Lozo and Morning BrewMay 7, 2026
2 days ago
A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
Magazine
A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
By Sharon GoldmanMay 6, 2026
3 days ago
Current price of oil as of May 8, 2026
Personal Finance
Current price of oil as of May 8, 2026
By Joseph HostetlerMay 8, 2026
20 hours ago
U.S. Treasury will have to borrow $2 trillion this year just to continue functioning—more than $166 billion every month
Economy
U.S. Treasury will have to borrow $2 trillion this year just to continue functioning—more than $166 billion every month
By Eleanor PringleMay 7, 2026
2 days ago
Airbnb CEO Brian Chesky warns two types of people won’t survive the AI era: ‘pure people managers’ and workers who resist change
Success
Airbnb CEO Brian Chesky warns two types of people won’t survive the AI era: ‘pure people managers’ and workers who resist change
By Emma BurleighMay 7, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.