A collaboration between Fermi America and Hyundai seems to pose the future of nuclear energy in Texas, United States. Together, they intend to create the “largest advanced energy campus in the world”. Although the start date is set for 2026, there are still no guarantees that the project will be built in its entirety. Hyundai’s participation is of vital importance due to its experience in the installation of 22 reactors prior to this one. It is estimated that the price will be around $6.8 million, although this project, the “Hypergrid”, is expected to exceed that budget, as this is not the first attempt to use Westinghouse’s third-generation reactors.
Hyundai’s participation will also include the deployment of approximately four gigawatts of combined cycle gas generation plants, one gigawatt of solar and battery storage, and two gigawatts of small modular reactors (SMR). NuScale is expected to supply the nuclear plants, as it has received the green light from the U.S. Nuclear Regulatory Commission. Many companies have made attempts to create a nuclear data center, but Fermi America seems determined to see this project through to the end.
Hypergrid
The increase in the use of artificial intelligence (AI) has caused a rise in energy demand. This is why ‘hyperscalers’ are seeking constant and large-scale energy sources to enable this supply. This is how the HyperGrid project from Fermi America was born. The company has proposed the idea of building an ‘energy and intelligence campus’ to meet the demand.
To this end, it has decided to collaborate with Hyundai and has chosen Amarillo, Texas, for its location. They intend to start by constructing four Westinghouse AP1000 reactors by 2026, with the aim of being operational by 2032. This ambitious project has the support of Rick Perry, former governor of Texas and former Secretary of Energy in the United States, and Toby Neugebauer.
Reality or ambition?
The project proposed by Fermi America is considerably ambitious. It plans to offer a capacity of up to six gigawatts of nuclear energy and start operating by 2032. But how does it intend to do this? The information clarifies that it is a memorandum of understanding (MoU), meaning that nothing guarantees that the project will be carried out in its entirety.
What are the disadvantages?
Mainly, the money. Two years ago, the price of constructing an AP1000 reactor was $6.8 million. Fermi America intends to build nothing less than four. On the other hand, the experience of previous companies in developing projects like this shows that initial budgets have nothing to do with final figures. This was the case with Westinghouse, which cost over $36 billion and took more than 15 years to build. Fermi America has not clarified the source or amount of its financing, which has led to a lot of distrust regarding this.
Different energy sources
Although the main bet of the project relies on nuclear energy, Hyundai will also carry out the development and supervision of other types of energy sources. Four gigawatts of combined cycle gas plants, one gigawatt of solar energy and battery storage, and two gigawatts of energy from small modular reactors (SMRs) are planned. If nuclear supply is needed, NuScale would be the company in charge, as it is the only one that has the green light from the US Nuclear Regulatory Commission.
Estimated dates
Fermi America has already gotten to work, as it wants to acquire 600 megawatts of gas generators to support data centers before the end of the year. In addition, it aims to have 1 gigawatt of capacity online by the same date. It’s an ambitious and extremely expensive project, with doubts about funding, but according to the company, it will generate energy while reducing current emissions by 30%.
