Bechtel, Sargent & Lundy, and GE Hitachi have secured a pivotal contract to support the Tennessee Valley Authority's (TVA) effort to bring a small modular reactor (SMR) to its Clinch River Nuclear site in Oak Ridge, Tennessee. This project marks a significant milestone for the future of nuclear energy in the United States, with the potential for a $5.4 billion price tag for the first unit.

The contract focuses on initial planning and evaluation for Clinch River Unit 1, but there is a possibility that it could extend to procurement, construction, and commissioning of the reactor. The TVA has a long history of working with Bechtel, with their most recent collaboration being the successful completion of Watts Bar Unit 2 in 2016. This new project, however, is unique due to its use of an integrated project delivery (IPD) model. The IPD approach is designed to ensure that all parties involved — Bechtel, TVA, Sargent & Lundy, and GE Hitachi — are aligned with a unified plan that focuses on achieving a target budget and schedule.

Bob Deacy, the TVA senior vice president for the Clinch River Project, emphasized the significance of the IPD model. "The integrated project delivery model is the preferred method that will make our project a true team effort," he said. "We will actively work together toward a target budget and schedule – creating a significant advantage to drive nuclear innovation, share risks and reduce costs."

While the TVA did not disclose the value of the planning contract, the project is eligible for $800 million in funding from the U.S. Department of Energy’s Generation III+ Small Modular Reactor Program. This grant would play a crucial role in speeding up the construction timeline, which aims for the plant to be commercially operational by 2033.

This initiative marks a critical step toward the growth of small modular reactors in the U.S. Bechtel’s involvement in the nuclear sector is extensive. In 2024, Bechtel broke ground on a $4 billion nuclear reactor project in Kemmerer, Wyoming, which is supported by Bill Gates. In 2023, Bechtel also completed the construction of the Vogtle Unit 3 in Georgia, a $30 billion project that was the first new atomic power unit built in the U.S. in over 30 years. With such high-profile projects under its belt, Bechtel’s experience in nuclear energy is expected to bring invaluable insights and efficiencies to the Clinch River project.

The successful development of Clinch River Unit 1 could serve as a model for future SMR projects across the U.S., providing a more sustainable and secure energy source while addressing challenges like climate change and energy independence. As Bechtel, TVA, and their partners move forward with this project, they are not only shaping the future of energy production in the U.S. but also demonstrating the critical role of collaboration and innovation in the energy sector.