Iowa city: The US Energy Department announced that it has finalized a loan of up to $1.9 billion to assist NextEra Energy in restarting the Duane Arnold nuclear power plant located in Iowa.
According to Anadolu Agency, the funding is provided through the department's Office of Energy Dominance Financing and aims to facilitate the return of Iowa's sole nuclear power facility, which ceased operations in 2020, back into service. The Duane Arnold plant, situated in Linn County, boasts a capacity of 615 megawatts, sufficient to supply electricity to approximately 500,000 homes, thereby addressing the increasing energy demands in Iowa and the broader US Midwest.
The project is anticipated to generate nearly 1,500 jobs during its construction phase and sustain more than 450 positions once the plant becomes operational. Deputy Energy Secretary James Danly emphasized the economic benefits, stating, "Returning 615 megawatts of reliable baseload generation will drive down electricity costs, while supporting thousands of American jobs."
NextEra has announced its intention to recommence operations at the facility by the first quarter of 2029, contingent on receiving necessary approvals from the US Nuclear Regulatory Commission and other relevant authorities. A study commissioned by the company suggests that the plant's restart could yield over $9 billion in economic benefits for Iowa over a 25-year period and generate approximately $75 million in tax revenue throughout the project's lifespan.
The initiative is further bolstered by a 25-year agreement with Google, which has committed to purchasing electricity from the plant. NextEra Chairman and CEO John Ketchum highlighted the significance of bringing new generation capacity online, noting that it would enhance the power grid and help mitigate rising electricity costs for Iowa households and businesses.
The Duane Arnold facility had been operational for over 40 years before its shutdown. In June, the Iowa Utilities Commission granted NextEra a certificate authorizing the plant's construction and operation. This financing aligns with the Trump administration's broader strategy to rejuvenate the US nuclear industry amid rising electricity consumption, partly driven by the proliferation of artificial intelligence data centers and increased electrification.
The administration has set a goal of having 10 large conventional nuclear reactors under construction by 2030 and is advocating for federal financial support to restart decommissioned plants.