Jan 17 (Reuters) - U.S. government-owned utility

Tennessee Valley Authority ( TVC ) said on Friday that it is

seeking an $800 million grant from the Department of Energy

(DOE) to develop nuclear technology.

The company, in partnership with Duke Energy ( DUK ),

American Electric Power ( AEP ) and others, will apply to

receive funding under the DOE's Generation III+ Small Modular

Reactor (SMR) Program.

WHY IT'S IMPORTANT

The U.S. nuclear industry, which has faced expansion

challenges in recent decades, is witnessing a surge in demand as

Big Tech seeks alternative energy sources for their

power-intensive data centers, spurred by the Biden

administration's push for investment in cleaner energy sources.

With technologies such as SMRs, which are smaller-sized

nuclear reactors, harnessing nuclear energy can become more

cost-effective and easier to deploy than full-sized models,

which can take decades to build.

CONTEXT

The program aims to accelerate the development of new

nuclear technologies by forming cost-shared partnerships with

teams that include utility, reactor vendor, constructor, and

end-users or power off-takers, according to the DOE's website.

The program also has access to up to $900 million in funding

from the Bipartisan Infrastructure Law, enacted in 2021 under

President Joe Biden.

WHAT'S NEXT

TVA said the funding, if awarded, would accelerate the

construction of GE Vernova's ( GEV ) SMR technology at TVA's

Clinch River project in Oak Ridge, Tennessee, by two years,

targeting commercial operation planned for 2033.

KEY QUOTES

"Not only will this funding allow us to accelerate our own

SMR ambitions, but this partnership will also allow us to

collectively advance the entire industry," American Electric

Power's ( AEP ) CEO Bill Fehrman said.

Separately, Duke Energy ( DUK ) said it would collaborate as a group

to assess risks and foster U.S. heavy manufacturing and supply

chain capabilities, a move that could lead to cost reductions

and cooperation across deployments.