NextEra Energy says it has taken the first steps to recommission Iowa's only nuclear energy plant, with operations possibly restarting by late 2028.
NextEra CEO John Ketchum in an earnings call Friday morning called recommissioning the 600-megawatt Duane Arnold nuclear plant near Palo in eastern Iowa a relatively speedy option for meeting the nation's rapidly growing energy demand, which he said is expected to climb "80% over the next five years and six-fold over the next 20 years."
"There are only a few nuclear plants that can be recommissioned in the near term in an economic way," Ketchum said.
NextEra Energy Resources filed notice with Nuclear Regulatory Commission that it will request a licensing change at Duane Arnold, "an important first step in establishing the regulatory pathway to restore the facility’s operating license and potentially restart plant operations as early as the end of 2028," he said.
"While this is just one part of our broader efforts with regulators, government officials, potential customers and other stakeholders, we're encouraged by the positive response we've received so far," he said.
Need a break? Play the USA TODAY Daily Crossword Puzzle.
Earlier this month, Gov. Kim Reynolds signed an executive order establishing a task force to make recommendations about moving forward with nuclear energy, saying the state needs to keep up with the growing energy demand from burgeoning Iowa data centers that power artificial intelligence and other emerging technologies.
More:Altoona bet on a mega Meta tax break. New property tax cuts may rob city of its big payoff
Large utilities are scrambling to restart closed nuclear plants to meet growing demand from tech companies such as Facebook, Google and Apple.
Maryland-based Constellation Energy, for example, plans to restart an undamaged reactor at Pennsylvania's Three Mile Island nuclear plant, the site in 1979 of the largest nuclear meltdown in U.S. history.
It would provide 835 megawatts to serve Microsoft Corp.'s data center energy needs over the next two decades. Repowering Three Mile Island is expected to cost $1.6 billion, the utility estimates.
Iowa has become a data center hub, with companies attracted by the state’s wealth of low-cost, clean energy.
Since 2007, companies like Facebook, Google, Microsoft and Apple have invested $12.3 billion in large data center projects in Iowa, which gets 60% of its energy from wind, the largest share of any state.
On Friday, Ketchum declined to say how much it would cost to restart Duane Arnold, adding that Florida-based NextEra has "more work to do," including holding discussions with potential energy customers.
"I'm not going to put a cost estimate out there that would hurt our negotiating position," he said.
"Rest assured that we are in active discussions with customers," said Ketchum, who has described them in the past as data centers. "Today, there's a lot of interest in the plant as we look forward."
Growing energy demand requires 'all-of-the-above' solutions, CEO says
NextEra closed Duane Arnold in 2020 after a derecho that year caused extensive damage to its since-dismantled cooling towers. But Ketcham said the "reactor itself is in good shape."
Rebuilding the towers is "run of the mill," he said.
"You build them at gas plants. You build them at nuclear facilities as well. That's pretty conventional construction," he said, with "not a whole lot of risk."
He said the nation's growing energy needs are going to need "all-of-the-above solutions."
"We can't afford to take any options off the table. We're going to need gas, we're going to need nuclear, we're going to need renewables," he said, adding that energy storage also will be important.
"But we can't wait, because that demand is here today," he said, comparing the technologies driving rising energy demand to "the industrial revolution."
Last month, Meta, Facebook's parent, asked developers to explore building 1 gigawatt to 4 gigawatts of dedicated nuclear power “to help us meet our AI innovation and sustainability objectives.” One gigawatt is enough energy to power about 750,000 homes.
Ketchum said the company continues to evaluate alternatives such as small nuclear reactors, but "due to the risk and uncertainty, the practical reality is we're unlikely to add multiple gigawatts of new nuclear to the grid over the next decade."
Some local leaders have said NextEra, along with rebuilding Duane Arnold's cooling towers, will need to shore up trust among Palo's 1,500 residents.
While the proposal to restart the plant has "created a pretty positive buzz around town," Palo Mayor Eric Van Kerckhove said last month, many there remain angry over NextEra's construction of a $300 million solar farm nearby, expressing concerns about issues including the installation's use of valuable land and its proximity to residential areas.
Reynolds said she wants the nuclear task force to be comprised of experts who can help secure local support, addressing questions such as the permitting process and workforce challenges.
Donnelle Eller covers agriculture, the environment and energy for the Register. Reach her at [email protected].