US utility NextEra Energy has signed a 25-year agreement with Google (a subsidiary of Alphabet) to support restart of the Duane Arnold Energy Centre (Duane Arnold), Iowa’s only nuclear facility. Google will purchase power from the plant to help power its growing cloud and AI infrastructure in Iowa, while also strengthening local grid reliability, creating thousands of direct and indirect jobs, and driving significant economic investment to the Midwest region.
In addition, one of the plant’s minority owners, Central Iowa Power Cooperative (CIPCO), is to purchase the remaining portion of the plant’s output on the same terms as Google. NextEra Energy has signed definitive agreements to acquire CIPCO and Corn Belt Power Cooperative’s combined 30% interest in the plant, which will bring NextEra Energy’s ownership to 100%.
Duane Arnold’s single-unit 615 MWe boiling water reactor plant was scheduled for retirement in late 2020 after a major customer, Alliant Energy, looked to cheaper energy alternatives. The plant ceased operating two months earlier than expected after a powerful windstorm, damaged some parts of the plant, including its cooling towers. All the fuel has been removed from the reactor to an on-site dry storage facility. However, the facility was placed into safe storage and the buildings are not scheduled to be demolished for 50 years.
In January, NextEra Energy opened discussions with regional grid operators about a possible restart of Duane Arnold and filed notice with the Nuclear Regulatory Commission (NRC) requesting a licensing change. NextEra has also undertaken a rigorous engineering evaluation, community engagement and close coordination with federal, state and local authorities.
The power purchase agreement with Google enables the investment to restart the plant and covers costs for the production of energy. Restarting the plant will increase generation capacity for the region, and energy customers in Iowa will not bear any costs associated with the power Google purchases from the facility NextEra Energy and Google also signed an agreement to explore the development of new nuclear generation to be deployed in the US.
“Restarting Duane Arnold marks an important milestone for NextEra Energy,” said NextEra Chairman & CEO John Ketchum. “Our partnership with Google not only brings nuclear energy back to Iowa. It also accelerates the development of next-generation nuclear technology… strengthening Iowa’s economy, delivering long-term value to our shareholders and helping power America’s future through innovation and technology.”
Ruth Porat, President and Chief Investment Officer of Alphabet and Google, said: “Building on two decades of work in Iowa, including our recent $7bn investment in the state this May, Google is proud to partner with NextEra Energy to reopen the Duane Arnold Energy Centre – a project that will deliver nuclear energy and hundreds of new job opportunities in the Hawkeye State by the beginning of 2029. This partnership serves as a model for the investments needed across the country to build energy capacity and deliver reliable, clean power, while protecting affordability and creating jobs that will drive the AI-driven economy.”
NextEra Energy owns Florida Power & Light Company, America’s largest electric utility, and also owns one of the largest energy infrastructure development companies in the US, NextEra Energy Resources.
Earlier this year, Google signed the Large Energy Users Pledge supporting the goal of at least tripling global nuclear capacity by 2050. It has also signed an investment and offtake agreement with Commonwealth Fusion Systems for power from its first ARC commercial fusion plant and provided early-stage capital for Elementl Power to prepare potential sites for advanced nuclear power projects in the US. it recently announced a collaboration with Kairos Power and the Tennessee Valley Authority in a power purchase agreement that will see output from Kairos Power’s Hermes 2 demonstration reactor deliver power to the grid for Google’s data centres.
