The Alaska Senate Resources Committee received an update Monday evening on the planned nuclear micro-reactor pilot project to be housed at Eielson Air Force Base as early as 2027.
Nancy Balkus, the Air Force deputy assistance secretary for energy and environment, provided an overview on the next steps for an anticipated project, while also stressing it’s a pilot project.
The U.S. Air Force selected Eielson to house the pilot project in 2021, based on a 2019 National Defense Authorization Act directive.
Nuclear micro-reactors have been in research and development stages for at least 20 years by different companies and research labs. Idaho National Laboratory, among other places, has been a research hub for the technology.
Unlike nuclear power plants seen in the Lower 48, micro-reactors are touted as being smaller, more modular and light years ahead in safety and efficiency.
Depending on the design, the reactors are designed to last for at least 10 years before needing to be refueled; with old reactors being able to be pulled and shipped back to the manufacturer in a single process.
Eielson’s project is expected to produce at most five megawatts of power.
The Eielson project serves multiple purposes, Balkus said.
“It will assess the viability of micro-reactor technology and it will help determine the scalability of nuclear power for communities,” Balkus said. “This pilot projects serves a dual purpose for the benefit of both DOD purposes and for the benefit of all Alaskans.”
The Air Force initially awarded the contract to California-based Oklo, Inc. in August 2023, nearly a year after if first solicited qualifications from interested parties. However, the federal government rescinded the contract a few months later, citing procurement issues after another interested firm protested the award.
Balkus said the notice of intent to award was reissued in February, promptly triggering another protest earlier this month with the Government Accountability Office. This puts a contract decision in limbo until June 20, when the GOA is required to rule on the protest.
“Protests of this form can typically last up to 100 days,” Balkus said.
However, Balkus said it the Air Force still hopes to meet its 2027 target to bring the reactor online for testing and demonstration and into commercial operation by 2028.
While the Air Force commissioned the pilot project, it will not directly administer or own it. Instead will operate under a 30-year power purchase agreement with a commercial operator, which will be responsible for licensing and operating the reactor to deliver electricity and steam-based heat to Eielson.
“We determined a power purchase agreement was the best vehicle given this is the first of its kind project and we wanted to demonstrate for the Air Force, DOD and the state of Alaska,” Balkus said.
Sen. Cathy Giessel (R-Anchorage) asked how much the reactor project would cost to develop. Balkus said the overall amount will be decided after the vendor has completed the micro-reactor’s design and NRC license process.
The investment and risk, she added, will be entirely placed on the third-party developer.
“The 30 years will give the developer an opportunity to spread their capital costs over a 30-year term,” Balkus said.
Final decision on an operational reactor still resides with the U.S. Nuclear Regulatory Commission, the national agency responsible for nuclear oversight. Balkus said the NRC has been updating its process to streamline licensing for advanced nuclear micro-reactors.
The main focus will be to field test the option as a viable option for future prospects in other remote military installations.
At only five megawatts, the micro-reactor isn’t designed to supplant Eielson’s existing power plant infrastructure; instead, it will only supplement or serve as a buffer in case of major outage.
“The installation currently uses 15 to 18 megawatts of power, so we’re doing this small-scale first and then add on to it once we’ve proven [the technology],” Balkus said.
Balkus stressed decisions aren’t being made in a vacuum and has involved several partnerships with federal, state and local organizations. Permitting will most likely fall to Fairbanks North Star Borough and the Alaska Department of Environmental Conservation.
The Air Force set up the Council for Alaska Micro-reactor Council for the Alaska Micro-Reactor Program, a group made up of federal, state and tribal organizations, as well as the borough and cities of North Pole and Fairbanks.
“We want everyone to know what we are doing ahead of time, demonstrate the frequency so it is clear we can keep everyone informed and to actively listen as part of our partnership,” Balkus said. “We want make sure everyone to have a voice in the process.”
Sen. Click Bishop (R-Fairbanks) asked whether the Defense Department took lessons learned from the 1960s use of the Fort Greely 20-megawatt SM-1A Nuclear Power Plant project. The U.S. Army had selected Fort Greely as a site to field test the practical applications of a nuclear reactor in a remote cold climate.
The military decided to shut down the plant in 1968 due to high operating costs and projected cost of replacing the reactor’s pressure vessel. The final plug was pulled in March 1972.
Balkus noted the Air Force continues to consult with the NRC and Idaho National Laboratory to ensure that nuclear micro-reactors are a viable option.
She noted the technology, if the pilot project measures up, holds major benefits, such as the ability to grow fresh produce year-round in greenhouses and savings in energy costs for rural households.
“Micro-reactor technology has the potential to be transformative for community resiliency due to its ability to deliver power exactly where it’s needed for both electricity and heat in isolated communities, for universities, for mining operations, industrial and data centers and for defense facilities,” Balkus said.
Bishop, when wrapping up the committee meeting, called the Air Force’s 2027 timetable an aggressive one he could appreciate. He remarked on how things have changed over the decades, noting that Eielson Air Force Base initially took very little time to build out during World War II.
“We are in a different place than we were 30, 40 or 50 years ago and the world is changing,” Bishop said. “I appreciate anything we can do to speed this process along as it’s done safely and in an efficient manner.”