From reactor restarts to clean hydrogen, DOE gives nuclear watchlist.

Building on the previous year of unprecedented progress for U.S. nuclear energy, 2025 is shaping up to be a defining year for the industry, with the U.S. Department of Energy spotlighting five critical developments that could redefine the energy landscape of America.

The many successes achieved in nuclear energy during 2024 – from the commissioning of a new reactor to new breakthroughs in reactor design and efficiency to efforts to secure a domestic fuel supply – created the foundation for the next year of development.

These 10 big wins highlighted the rapid advancements in nuclear energy, setting a high bar for the progress anticipated in 2025.

Palisades Restart

Among the nuclear wins for 2024 was a $1.52 billion loan from DOE to upgrade and repower the Palisades power plant in Michigan.

Originally closed in 2022, the 800-megawatt facility could now become the first-ever recommissioned nuclear reactor in U.S. history, with the Nuclear Regulatory Commission (NRC) expected to rule on its restart this summer.

If approved, the project, spearheaded by Holtec International, is expected to create or retain 600 high-quality jobs, deliver carbon-free power, and have the plant operational by the end of the year.

Fuel contracts

Last year similarly saw significant progress in the development of domestic nuclear fuel supply, paving the way for DOE to finalize task orders with 10 companies as part of its $3.4 billion capacity-building program for low-enriched uranium (LEU) and high-assay low-enriched uranium (HALEU).

These agreements, which support a larger strategy to expand domestic production capacity, will enable the production, storage, and deconversion of materials critical to fueling both existing reactors and advanced nuclear technologies.

With more than 20% of enriched uranium imports still sourced from Russia, this initiative is a pivotal step in bolstering U.S. energy independence, with the DOE expecting contracts to be finalized by summer and production beginning as early as 2027.

Advanced reactors

Progress in reactor innovation during 2024 paved the way for DOE's next steps in advancing small modular reactor (SMR) technology. This year, the Office of Clean Energy Demonstrations is set to select up to two projects to demonstrate advanced light-water SMR systems.

This program, introduced last year, takes a consortium-based approach designed to lower the risks of deploying innovative reactor technologies.

By encouraging bulk orders for multiple reactors and strengthening the advanced light-water reactor supply chain, these first-mover projects aim to streamline the path to widespread deployment, with the agency expecting to announce selections by mid-2025.

Renewed fleets

Momentum from last year also carried forward with efforts to extend the lifespan of the existing nuclear fleet. Early in 2025, the Monticello Nuclear Generating Plant – a single-unit boiling water reactor located near Minneapolis, Minnesota – achieved a significant milestone with a subsequent license renewal from the NRC.

This approval cleared the plant to operate for up to 80 years, making it the ninth reactor in the commercial fleet to reach this benchmark.

Later this year, the NRC is also expected to decide on additional license renewals that could further bolster the longevity of the fleet. These include a ruling on extending operations of V.C. Summer Unit 1 in South Carolina into the 2050s, along with initial license renewal decisions for Perry Unit 1 in Ohio and Diablo Canyon Units 1 and 2 in California.

If approved, these decisions could extend the operational lifespans of these reactors from 40 to 60 years, ensuring their continued contribution to the nation's energy reliability and emissions reduction goals.

Clean hydrogen

Finally, two nuclear-powered hydrogen demonstration projects could start the production of clean hydrogen later this year.

At the Davis-Besse Nuclear Power Station in Ohio, Vistra Corporation will demonstrate an electrolysis system, with hydrogen sold locally for industrial and transportation needs, including fueling a bus fleet.

In addition, Xcel Energy plans to produce clean hydrogen through high-temperature electrolysis at the Prairie Island Nuclear Generating Plant in Minnesota.

Supported by DOE, both projects aim to lower costs and scale up clean hydrogen production using existing reactors, potentially opening new markets for the nuclear sector.