Nuclear energy as key technology for energy decarbonization and energy transition

The United States (U.S.), the United Kingdom (UK), Europe, Asia, Africa and various other regions worldwide have witnessed a surge in new nuclear initiatives, government support, and committed projects – demonstrating the growing need for the multifaceted applications of nuclear energy. Beyond electricity generation, nuclear is also gaining traction for its potential in addressing high process heat needs for industrial decarbonization, pioneering initiatives in deep space exploration and in feeding the immense energy thirst created by data centers and AI.

The spreading acceptance that nuclear is key to national energy strategies comes at a critical time. Both advanced and emerging economies are seeing an increased need for energy due to expansions in electrification, development of data centers, and growing industrialization. Countries around the globe are trying to ensure grid stability through this growth while keeping an eye on their decarbonization plans.

This shift is reflected in annual reports from global organizations tracking energy developments around the world. For example, in 2024, the International Atomic Energy Agency (IAEA) published its annual projections on nuclear power growth, showing nuclear energy is projected to increase by 2.5 times the current capacity by 2050, an expansion supported in part by interest from about 30 countries currently without nuclear generation. Complementing the IAEA’s report, the International Energy Agency issued a report in 2024 projecting increases in electricity demand and outlining how nuclear generation is forecast to grow in response.

Summary of nuclear energy developments worldwide 

Nuclear power capacity worldwide is increasing steadily – with a long operating life, few retirements of older plants, and a number of new projects under development around the world. Today there are 413 nuclear power reactors operating with a combined capacity of about 371.5 GW(e), or about 9.2% of the world’s electricity. New projects continue to advance, with 65 nuclear reactors currently under construction. In the EU, countries like Poland have announced plans to build at least 8 new nuclear reactors through 2050. Meanwhile, China is in the process of constructing 29 nuclear reactors  – more than any other country by a wide margin – and India is constructing 7 and calling for building as many as 28 new nuclear power plants. While countries with existing nuclear power programs either have plans to build or are building new reactors – such as China – improved and advanced designs of nuclear reactors are also being developed worldwide. These newer advanced reactors have simpler designs which are intended to reduce capital cost, and they are more fuel efficient and inherently safer. Small modular reactors (SMRs) –  typically up to 300 MWe – and advanced reactors are capable of more complex siting and power applications such as powering remote sites, maritime operations, military instillations, and space missions. New nuclear projects and plans being announced around the world include expanding nuclear programs in central and eastern Europe with U.S. support, and planning for the deployment of SMRs in France, China, and the UK. Southeast Asian and African countries are also strongly exploring nuclear to meet their sharply rising energy needs. Concurrently, countries including the U.S., UK, France, Canada, and Japan have pledged to develop an allied nuclear fuel supply chain to reduce reliance on Russian fuel following the latter’s invasion of Ukraine.

In the U.S., political consensus and support for nuclear in Congress led to passage of the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act in 2024, which was the most comprehensive energy-related bill since the Inflation Reduction Act. This cooperation has also paved the way for the greenlighting of new plant designs, including advanced reactors, and keeping older plants operating. With U.S. government support, the Palisades Nuclear Plant is under review to become the first closed nuclear plant to be restarted, with Three Mile Island Unit 1 aiming to become the second and sell power to Microsoft. Amazon and Google have pledged to develop over 5.5 GW(e) of advanced reactors designed by X-energy and Kairos Power, respectively, to support their data centers. In fact, the U.S. is so far leading the charge with the number and diversity of nuclear reactor projects underway—other projects include siting the X-energy reactor at a Dow Chemical plant in Texas, a TerraPower reactor at a retired coal plant in Wyoming, the Kairos demonstration project, Westinghouse large reactors in central Europe, and a number of GE-Hitachi projects in Canada, the U.S., and across Europe.

Key takeaways for nuclear power

Nuclear is critical to energy security and baseload power. With the projected global growth in electricity demand, nuclear energy is well suited to thrive and grow substantially over the coming decades as countries look to ‘keep the lights on’. But new projects need to be delivered in a predictable manner – on time and on budget, moving past the growing pains that will inevitably come with the first-of-a-kind projects – in order for nuclear to realize its full potential.

• New technologies: Along with existing large scale plants, a number of countries are looking at deploying advanced reactors, which are intended to be smaller, simpler, and scalable, with enhanced safety features, and improved economics. With their smaller size comes more diverse applications, like powering the new space age or commercial ships.
• Predicable costs and schedules: New projects need to have predictable deployment schedules. First-of-a-kind projects will always take longer and cost more than the “nth”-of-a-kind, and nuclear power’s economies come in both the immense long-term power it is able to produce, but also driving down construction costs and schedules through standardization.
• Continued and expanded strong political and public support is critical for the nuclear energy industry: To secure long-term investment, nuclear will need to see continued and widespread government and public support – both winds that have consistently and increasingly been moving in nuclear’s favor.
• Industrial decarbonization: Decarbonization of the industrial sector, one of the biggest contributors of greenhouse gas emissions, is a difficult task, but nuclear is uniquely suited for this sector because of its small footprint, energy density, high levels of reliability, and ability to provide process heat. These attributes have led to Dow Chemical selecting the X-energy plant to provide carbon free power and process heat to a chemical plant in Texas, and we expect to see an increase in announcements like this globally.