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DOE OSTI2025

DOE Zero Energy Ready Manufactured Housing: Subject Matter Expert Technical Assistance Summary

Manufactured homes offer American consumers an affordable option for decent single-family detached housing. For working-class American families in many U.S. markets, manufactured homes are the first step toward home ownership. They now make up 10% of all new homes constructed in the United States, with higher percentages in the south and in rural communities. To help encourage the production of homes that are more durable, healthy, efficient, and disaster resistant, the U.S. Department of Energy is bringing its building science research to the manufactured housing industry through DOE’s Zero Energy Ready Manufactured Home (ZER-MH) program, which provides technical assistance and voluntary guidelines to manufactured home builders. Homes built to these guidelines are better able to handle power outages and less likely to experience moisture issues, offering a better product option for American families. This higher quality is evidenced by energy modeling which shows homes manufactured to these voluntary guidelines will typically use half the energy of manufactured homes built to the current minimum requirements of the U.S. Department of Housing and Urban Development (HUD)’s Manufactured Housing and Construction Safety Standard (MHCSS). These homes can also reduce critical energy demand during the busiest hours of the day, typically late afternoon and early evening in the summer when air conditioning demand is highest and mornings in the winter when furnaces and heaters are heating up. Reducing electricity demand during these peak periods when electricity rates are at their highest reduces costs for American families while freeing up capacity on overburdened energy distribution networks. Builders participating in the DOE ZER-MH program are eligible for a tax incentive via the 45L tax credit, which helps to offset the costs of ZER-MH upgrades, enabling builders to offer these certified homes at no additional cost. Together these factors enable manufactured homes to offer home buyers a housing option that is both affordable to finance and affordable to operate, with lower monthly mortgage payments and lower monthly energy bills.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2021

Techno-economic analysis and environmental benefits of solar industrial process heating based on parabolic trough collectors

In this work, detailed techno-economic and environmental analyses are conducted for employing a 5 MWt parabolic trough-based solar industrial process heat (SIPH) plant in Salt Lake City, Utah. According to the results, an optimum solar multiple of 1.5 was determined, allowing the plant to generate annual thermal energy of 15389.24 MWth with a capacity factor of 35.1% and levelized cost of heat (LCOH) of $\$ 26.3$/MWth. Considering a 30% investment tax credit and a 30% reduction in the total installed cost could reduce the LCOH to $\$ 19.30$/MWth and $\$ 18.52$/MWth, respectively. Employing parabolic trough collectors could avoid emissions of 3,582,422.47 kg, 147.99 kg, 3,341.66 kg, and 14.32 kg for CO 2 , PM, NOx, and SO 2 , respectively per year compared to a natural gas-based plant. Further, it also caused an annual external cost savings of between $\$ 99,900$ and $\$ 357,004$. Including the external costs in the LCOH analysis shows that the SIPH plant is economically competitive with a natural gas-based plant, further demonstrating its value. A further comparison demonstrated the economic superiority of a parabolic trough-driven IPH plant over a photovoltaic-driven electric boiler plant. In summary, with reducing installed costs and providing incentives, parabolic trough-driven IPH plants will be an economically and environmentally viable option.

14 SOLAR ENERGY↗

DOE OSTI2022

Flexible Financial Credit Agreements: Tariff On-Bill Financing (TOBF)

Flexible Financial Credit Agreements is a broad term used to describe a suite of solar products with innovative features not currently offered in traditional solar financing programs. This brief focuses on the Tariff On-Bill Financing (TOBF) model, in which utilities use a tariff to enable customers to pay back the cost of a solar panel without credit or income level conditions.

Flexible Financial Credit Agreements↗

DOE OSTI2024

Agent-based modeling for multimodal transportation of CO 2 for carbon capture, utilization, and storage: CCUS-agent

Here, to understand the system-level interactions between the entities in Carbon Capture, Utilization, and Storage (CCUS), an agent-based foundational modeling tool, CCUS-Agent, is developed for a large-scale study of transportation flows and infrastructure in the United States. Key features of the tool include (i) modular design, (ii) multiple transportation modes, (iii) capabilities for extension, and (iv) testing against various system components and networks of small and large sizes. Five matching algorithms for CO 2 supply agents (e.g., powerplants and industrial facilities) and demand agents (e.g., storage and utilization sites) are explored: Most Profitable First Year (MPFY), Most Profitable All Years (MPAY), Shortest Total Distance First Year (SDFY), Shortest Total Distance All Years (SDAY), and Shortest distance to long-haul transport All Years (ACAY). Before matching, the supply agent, demand agent, and route must be available, and the connection must be profitable. A profitable connection means the supply agent portion of revenue from the 45Q tax credit must cover the supply agent costs and all transportation costs, while the demand agent revenue portion must cover all demand agent costs. A case study employing over 5500 supply and demand agents and multimodal CCUS transportation infrastructure in the contiguous United States is conducted. The results suggest that it is possible to capture over 9 billion tonnes (GT) of CO 2 from 2025 to 2043, which will increase significantly to 22 GT if the capture costs are reduced by 40 %. The MPFY and SDFY algorithms capture more CO 2 earlier in the time horizon, while the MPAY and SDAY algorithms capture more later in the time horizon.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

DOE OSTI2022

Flexible Financial Credit Agreements: Low-Interest Secured Flex Loans (LISFL)

Flexible Financial Credit Agreements is a broad term used to describe a suite of solar products with innovative features not currently offered in traditional solar financing programs. This brief focuses on a flex loan program that offers a no- or low-cost capital source to bridge the gap between the initial installation cost and the ultimate receipt of tax credits and energy savings. This program also provides low interest rates, for affordability, as well as a pre-funded debt service reserve account (DSRA), and is secured by the solar PV asset.

ENERGY PLANNING, POLICY, AND ECONOMY,SOLAR ENERGY↗

DOE OSTI2022

Techno-economic performances and life cycle greenhouse gas emissions of various ammonia production pathways including conventional, carbon-capturing, nuclear-powered, and renewable production

Ammonia (NH 3 ) is conventionally produced using fossil natural gas (NG) for hydrogen production through steam reformation and synthesis in the Haber–Bosch (HB) process. The global conventional ammonia production contributes more than 420 million tons of CO 2 emissions annually. Here, in this work, we investigated the techno-economics and well-to-plant-gate (WTG) greenhouse gas (GHG) emissions of conventional NG-based, carbon-capturing, nuclear-powered, and renewable ammonia production by developing an engineering process model for each. Carbon-capturing ammonia production refers to the NG-based ammonia production while capturing CO 2 and transporting it via pipelines for storage or utilization. Nuclear-powered and renewable ammonia production represents an alternative ammonia production through water electrolysis, air separation, and the HB process using carbon-free energy sources. Nuclear and renewable energy sources are assumed to be used for nuclear-powered and renewable ammonia production, respectively. Sensitivity analyses are performed for CO 2 pipeline transport distances, potential carbon capture tax credits, and clean H 2 production cost. Carbon-capturing ammonia production reduces WTG GHG emissions by 55–70% compared to conventional NG-based ammonia production methods. Nuclear-powered and renewable ammonia production almost eliminate GHG emissions since energy supply is either zero carbon or near-zero carbon. However, when $4.16–4.83 per kg is the cost assumed for clean H 2 production using state-of-the-art electrolysis technologies, the levelized costs of nuclear-powered and renewable ammonia are calculated to be $0.92–1.06 per kg NH 3 , which are approximately four times higher than the conventional NG-based ammonia production cost. The cost of CO 2 emission avoidance is estimated in the range of $266–318 per metric ton of CO 2 for nuclear-powered and renewable ammonia production. The clean H 2 production cost is the major contributor to the levelized costs of nuclear-powered and renewable ammonia production. A lower production cost, near $1 per kg H 2 , for clean H 2 is required for nuclear-powered and renewable ammonia production to be cost-competitive with conventional NG-based ammonia production.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗

DOE OSTI2022

Floating Island International PHASE I FINAL TECHNICAL REPORT (Advancing the Development of Floating Solar-Powered Nanobubble Aeration Systems for Use with Floating Treatment Wetlands in Natural and Man-Made Waterbodies)

More and more freshwater lakes are suffering from algae blooms, which deprive water of oxygen and lead to widespread loss of aquatic life and production of dangerous toxins. When oxygen is lacking, methane is generated in the sediments as algae is decomposed; it has been calculated that more than half of global methane emissions come from nutrient-impaired freshwater systems (Beaulieu, 2021). Nutrients, mainly from agricultural run-off, feed algae blooms and are exacerbated by warming related to climate change. Artificial aeration is frequently used to restore oxygen to a waterbody. But diffuser aeration is inefficient and expensive, needs on-site grid power, and is failing to keep pace with the demands of water as it gets warmer with climate change. In the last five years, nanobubble aeration has been introduced into freshwater applications and shows promise for rapidly increasing dissolved oxygen effectively throughout the water column. Nanobubbles deliver oxygen in bubbles that have no buoyancy, so they stay in water longer and release their oxygen more fully, compared to large bubbles that rise and burst at the surface. The prospect of this new technology answering the deficiencies of diffuser aeration drove us to initiate the current project. During our Phase I period, we have successfully tested a nanobubble aeration system that can super-saturate oxygen levels. It is operated on solar power, and both the nanobubbler and solar array are mounted on a proprietary floating island platform, that also performs biological nutrient recycling. A rudimentary system was assembled and tested on a 6.5-acre research lake at our headquarters in Montana, where it was subjected to a summer drought that reduced water levels significantly, periods of severe cold in winter, and spring conditions that included heavy rainfall and violent thunderstorms. Our twice-weekly sampling throughout the project showed that dissolved oxygen levels rose rapidly and were maintained throughout winter and spring, well into June. The nanobubbler was able to run on solar power for long periods. Methane levels were tested periodically and found to decrease as oxygen increased. The nanobubbles appeared to have no adverse impact on fish or other aquatic life exposed to them. The stability of the installation survived the weather conditions. The many problems we encountered taught us what we need to improve in the next iteration. Towards the end of our Phase I, we were awarded a supplementary state grant that enabled us to acquire a new nanobubble system for testing that runs on DC, is extremely efficient and has few moving parts. We plan to team this with low-profile solar panels, lithium batteries and a controller that provides real-time data. The ultimate goal of this project is to commercialize an affordable and scalable lake management system that will oxygenate water from the surface down to the sludge. It will enliven fisheries, prevent toxic algae blooms and – most importantly for the fate of our planet - inhibit the production and release of methane from the sediments. We anticipate that as carbon credits expand to include methane, the cost of remediating waterbodies that produce methane will be offset. We firmly believe that this is a practical technology that works and will make a big difference when fully implemented.

14 SOLAR ENERGY↗

DOE OSTI2023

Impacts of hybridization and forecast errors on the probabilistic capacity credit of batteries

Battery storage is increasingly identified as being among the least-cost mix of technologies in the evolving U.S. electricity mix. This study explores the marginal capacity credit of batteries using a probabilistic, reliability-based, effective firm capacity method, which we apply for multiple battery power ratings, durations, coupling types, deployment locations, and dispatch profiles within a test system that is based on the Texas Interconnection in the year 2024. We find that the capacity credits for all battery durations depend on their ability to predict the timing of reliability events. Even 1-2 h forecast errors - resulting in early or delayed battery discharging relative to the onset of a reliability event - lead pronounced capacity credit reductions, especially for 4-h duration batteries. Coupling batteries with solar mitigates the uncertainty associated with a shorter-duration battery's availability during reliability events, primarily due to the relatively high solar capacity credit in our test system. Coupled (or hybrid) system designs with oversized solar arrays, the ability to charge the coupled battery with grid energy, and larger batteries lead to the greatest capacity credit benefits of hybridization. We do not see evidence that the hybrid capacity credit exceeds the sum of the separate battery and solar capacity credits.

24 POWER TRANSMISSION AND DISTRIBUTION↗

DOE OSTI2026

Jijak Gises Project

The Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians, d.b.a. Gun Lake Tribe (Gun Lake Tribe/Tribe), installed a grid connected 68.87 kW solar photovoltaic array at the Tribe’s Jijak Property located in Hopkins, MI. The array generated 95,070 kWh its first year of operation, 7,014 kWh more than projected. The Jijak Gises solar array saved $\$$12,214 during the first year of production including $\$$6,022 in generation credit and $\$$6,192 in offset electrical cost. The array will save the Tribe more than $\$$312,000 with increasing electric rates during the normal life of the system reducing Gun Lake Tribe’s reliance on other energy resources. Competitive pricing allowed the Tribe to install a second smaller array to power the Jijak Garden. The 4.85kW Jijak Garden Array produced 6,643.96 kWh during its first year of production, 475.95 kwh more than projected saving $\$$1,126 during year one of production including invoice credits and offset energy consumption. Over the first 20 years of the array, it is expected to produce 132,879 kWh of electrical energy, saving over $26,000 over the life of the system.

14 SOLAR ENERGY↗

DOE OSTI2021

Relative Cost-Effectiveness of Electricity and Transportation Policies as a Means to Reduce CO2 Emissions in the United States: A Multi-Model Assessment

Two common energy policy instruments in the United States are tax incentives and technology standards. Although these instruments have been shown to be less cost-effective as a means to reduce CO2 emissions than direct emissions pricing mechanisms, it can be challenging to compare the CO2 emissions reduction costs of such policies across sectors, given the wide range in estimates for any given policy and inconsistencies in how such estimates are constructed across studies. This study addresses this analytical gap by simultaneously comparing the cost-effectiveness of policies across the electricity and transportation sectors using three publicly available US energy system models (EM-NEMS, ReEDS, and GCAM-USA). Four policies are explicitly compared: wind and solar tax credits, a renewable portfolio standard (RPS), a renewable fuel standard (RFS), and an electric vehicle (EV) tax credit. An economy-wide carbon tax is used as a benchmark for cost-effectiveness. Results from this study confirm prior insights about the cost-effectiveness of economy-wide carbon pricing relative to sectoral instruments but also reveal several novel insights about particular sectoral policies. Specifically, this study finds that (1) current electricity tax incentives provide uneven support for wind and solar technologies, (2) despite known inefficiencies, renewable energy policies in the electricity sector are less expensive than earlier estimates due to technology advancement and changes in market conditions, (3) within transportation, an expanded RFS with increasing advanced biofuel targets is more cost-effective than an EV tax credit extension under plausible assumptions, (4) EV incentives lead to a rebound in conventional vehicle fuel economy that further erodes cost-effectiveness, and (5) the change in policy costs over time is not known a priori, but the relative cost ordering among these policies does not depend on the timeframe of analysis. These results are largely robust to the underlying modeling framework, increasing the confidence with which they can be applied to climate policy evaluation.

economics↗

DOE OSTI2021

Representing DC-Coupled PV+Battery Hybrids in a Capacity Expansion Model

Recent technology cost and performance improvements and the federal investment tax credit (ITC) have driven growing interest in coupling solar photovoltaic (PV) and battery systems. Combining these technologies into co-located or hybridized PV+battery systems has the potential to lower costs and increase energy output relative to multiple independent systems. In this work, we provide an overview of PV+battery systems and demonstrate methods for incorporating them into NREL’s Regional Energy Deployment System (ReEDS) capacity expansion model. Although the methods are applied to a specific model, we anticipate that the approaches used here can be useful for informing PV+battery method development for other capacity expansion models. The implemented method relies heavily on the native representations of PV and battery technologies; therefore, the focus of this work is on capturing and parameterizing the interactions between them for a configuration in which the PV and battery technologies share a single bi-directional inverter. This work also demonstrates the impacts of including PV+battery systems in the ReEDS optimization for the conterminous United States through 2050. In particular, we perform parametric sensitivities for input assumptions that are uncertain and expected to influence PV+battery deployment levels, including (a) the cost of PV+battery systems relative to independent PV and battery systems, (b) the battery component’s qualification for the ITC, and (c) future cost trajectories for PV and battery systems. We find that PV+battery deployment could occur throughout the conterminous United States if there are cost savings associated with DC coupling PV and battery technologies. If even modest (5%) cost savings can be achieved (through a shared inverter and balance-of-system costs), then approximately one-third of utility-scale PV deployment through 2050 adopts the DC-coupled hybrid configuration, resulting in total PV+battery deployment that exceeds the magnitude of PV+battery projects in U.S. interconnection queues in 2020. If greater cost savings can be achieved through DC coupling (e.g., due to a growing amount of shared balance-of-system costs, reduced financial risk, or modularity) or more rapid cost and performance improvements are realized for PV and battery technologies, then total PV+battery deployment and the share of PV and battery deployment that adopts the hybrid configuration grows (to >50%). In all cases, growing PV+battery deployment primarily displaces independent PV and battery technologies, indicating the strong competition between the hybrid and independent configurations comprising technologies with similar performance characteristics.

14 SOLAR ENERGY↗

DOE OSTI2025

Process Feasibility Analysis of Waste Biomass Valorization to Biochar and Bio-Oil via Slow and Fast Pyrolysis

The United States has abundant biomass and waste feedstock to support the nation's energy addition and affordability targets. Pyrolysis, a thermochemical conversion process, decomposes lignocellulosic feedstocks into liquid, solid, and gaseous fuels that can contribute to the domestic production of biofuels, biopower, and bioproducts. Growing private sector interest in this technology is a key motivation for this comprehensive techno-economic process modeling analysis of a respective biorefinery that includes feedstock preprocessing, slow and fast pyrolysis, and product separation to bio-oil, biochar, and syngas hydrocarbons. Results show that biochar from slow pyrolysis could achieve minimum selling prices (MSPs) of $\$$188-$\$$260/t, competitive with reported market values, while bio-oil from fast pyrolysis is estimated to yield MSPs of $\$$6.49-$\$$9.68/GGE, approximately twice conventional fuel benchmarks. Sensitivity analysis identifies feedstock cost, product yield, and scale as primary cost drivers, while scenarios involving biochar carbon credits and high value applications may substantially improve economics. Overall, these results suggest that continued innovation in feedstock logistics, process integration, and market development will be critical to achieving economically viable and scalable bioproducts.

09 BIOMASS FUELS↗

DOE OSTI2020

Benchmarking Utility-Scale PV Operational Expenses and Project Lifetimes: Results from a Survey of U.S. Solar Industry Professionals

This paper draws on a survey of solar industry professionals and other sources to clarify trends in the expected useful life and operational expenditure (OpEx) of utility-scale photovoltaic (PV) plants in the United States. Solar project developers, sponsors, long-term owners, and consultants have increased project-life assumptions over time, from an average of ~21.5 years in 2007 to ~32.5 years in 2019. Current assumptions range from 25 years to more than 35 years depending on the organization; 17 out of 19 organizations surveyed or reviewed use 30 years or more. Levelized, lifetime OpEx estimates have declined from an average of ~$\$$35/kW DC -yr for projects built in 2007 to an average of ~$\$$17/kW DC -yr in 2019. Across 13 sources, the range in average lifetime OpEx for projects built in 2019 is broad, from $\$$13 to $\$$25/kW DC -yr. Operations and maintenance (O&M) costs—one component of OpEx—have declined precipitously in recent years, to $\$$5-8/kW DC -yr in many cases. Property taxes and land lease costs are highly variable across sites, but on average are—together—of similar magnitude. Other OpEx line items include security, insurance, and asset management. Given 2007-2009 values for not only project life and OpEx but also other drivers of the levelized cost of energy (LCOE, excluding the investment tax credit), the LCOE for utility-scale PV projects built from 2007 through 2009 averaged $\$$305 /MWh. Using 2019 values for all parameters yields an average LCOE of $\$$51 /MWh. The decline in LCOE from $\$$305 /MWh to $\$$51 /MWh was predominantly caused by reductions in up-front expenditures (and, to a much lesser extent, by changes in capacity factors, financing costs, and tax rates), but 9% ($\$$22 /MWh) of the overall decline is due to improvements in project life and OpEx. Project life extensions and OpEx reductions have had similarly sized impacts on LCOE over this period, at $\$$11 /MWh each. Had project life and OpEx not improved over the last decade, LCOE in 2019 would have instead been $\$$73 /MWh—43% higher. Given the limited quantity and comparability of previously available data on these cost drivers, the data and trends presented here may inform assumptions used by electric system planners, modelers, and analysts. The results may also provide useful benchmarks to the solar industry, helping developers and assets owners compare their expectations for project life and OpEx with those of their peers.

14 SOLAR ENERGY↗

DOE OSTI2021

Exploring filamentous fungi depolymerization of corn stover in the context bioenergy queuing operations

Recalcitrance of lignocellulosic feedstocks to depolymerization is a significant barrier for bioenergy production approaches that require conversion of monomeric carbohydrates to renewable energy sources. This study assesses how low-cost modifications in the feedstock supply chain can be transformed into targeted pretreatments in the context of the entire bioenergy supply chain. The aim of this research is to overcome the physiochemical barriers in corn stover that necessitate increased severity in conversion in terms of chemical loading, temperature, and residence time. Corn stover samples were inoculated with a selective (Ceriporiopsis subvermispora) and non-selective (Phaenarochaete chrysosporium) lignin degrading filamentous fungal strains, then stored aerobically to determine the working envelope for fungal pretreatment to achieve lignin degradation. Dry matter loss and gross chemical makeup of corn stover varied by the length of treatment (2 and 4 weeks) and by the moisture content of the treated corn stover samples (40 and 60%, wet basis). Dry matter loss in P. chrysosporium inoculated biomass was elevated compared to the C. subvermispora inoculated biomass; however, treatment also induced additional chemical composition changes suggestive of depolymerization. Scanning electron microscope images reveal hyphae attached within cell lumen and suggest structural changes within P. chrysosporium treated corn stover after 60% moisture storage. These results highlight that fungal treatment approaches must balance loss of convertible material with the potential for reduction in recalcitrance. Techno-economic assessment (TEA) of fungal pretreatment in a short-term queuing system indicated the viability of this approach compared to conventional queuing operations. The total queuing system cost was estimated at $\$$1.65/tonne of biomass stored. After applying the credit of $\$$1.48/tonne from energy savings in the conversion phase using fungal pretreated biomass, the total system cost was $0.80 lower than traditional biomass queueing approach. While the TEA results suggested that treating biomass with C. subvermispora is the most economically viable storage method in the designed fungal-assisted queuing system, future research should focus on additional fungal depolymerization such as those observed in the P. chrysosporium inoculated biomass.

09 BIOMASS FUELS↗

DOE OSTI2024

Can section 45Q tax credit foster decarbonization? A case study of geologic carbon storage at Acid Gas Injection wells in the Permian Basin

Carbon capture, utilization, and storage (CCUS) is an important pathway for meeting climate mitigation goals. While the economic viability of CCUS is well understood, previous studies do not evaluate the economic feasibility of carbon capture and storage (CCS) in the Permian Basin specifically regarding the new Section 45Q tax credits. We developed a technoeconomic analysis method, evaluated the economic feasibility of CCS at the acid gas injection (AGI) wells, and assessed the implication of Section 45Q tax credits for CCS at the AGIs. We find that the compressors, well depth, and the permit and monitoring costs drive the facility costs. Compressors are the predominant contributors to capital and operating expenditure driving the levelized cost of CO 2 storage. Strategic cost reduction measures identified include 1) sourcing of low-cost electricity and 2) optimizing operational efficiency in well operations. In evaluating the impact of the tax credits on CCS projects, facility scale proved decisive. We found that facilities with an annual injection rate exceeding 10,000 MT storage capacity demonstrate economic viability contingent upon the procurement of inputs at the least cost. The new construction of AGI wells were found to be economically viable at a storage capacity of 100,000 MT. The basin is heavily focused on CCUS (tax credit – $\$$65/MT CO 2 ), which overshadows CCS ($\$$85/MT CO 2 ) opportunities. Balancing the dual objectives of CCS and CCUS requires planning and coordination for optimal resource and pore space utilization to attain the basin's decarbonization potential. We also found that CCS on AGI is a lower cost CCS option as compared to CCS on other industries.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

DOE OSTI2024

Powering Data Centers with Clean Energy: A Techno-Economic Case Study of Nuclear and Renewable Energy Dependability

Rising data demands from artificial intelligence (AI) and large language models (LLMs) generating images, videos, and text have prompted increased need for larger and more robust data centers in the United States. Major companies interested in these larger data centers face the choice of linking them to existing regional grids, building stand-alone power supplies onsite, or a combination of both. The request, review, and approval process for new transmission lines to grids in the United States, however, has grown in recent years to times spans rivaling those of new construction for nuclear power plants. Building an islanded power supply for each data center is therefore becoming a prominent option. In this case study, several technologies are modeled in techno-economic simulations for long-term system costs subject to fixed electricity demand from a singular data center. A 250 MWe data center is assumed with additional 50 MWe for resiliency. Techno-economic simulations are conducted using the Holistic Energy Resource Optimization Network (HERON) software, which is a part of the Framework for Optimization of Resources and Economics (FORCE) tool suite. Technologies considered include solar, wind, lithium-ion batteries, and several types of nuclear reactors: large-scale reactors, small modular reactors, and microreactors. A low- and high-cost estimate for each technology is assumed to develop a range of expected economic performance. Low-cost estimates included several clean energy production tax credits. Different combinations of renewable energy generators with nuclear reactors are considered, ranging from a fully renewable-powered data center to a fully nuclear-powered data center. Historic time series of wind and solar availability from the Texas grid are used to train a reduced order model; this model then generates unique time series with similar characteristics of the training dataset. Multiple scenarios of weather and subsequent operations are simulated for each renewable-nuclear combination to determine total costs throughout the project lifetime. Fully renewable-powered configurations required large amounts of installed capacity (GW scale) in the simulations to meet the fixed demand of the data center. This is due to some scenarios in the historical dataset which captured low-wind and low-solar days, requiring over-building of these technologies as well as batteries to compensate for the low amounts of electricity generation. Fully nuclear-powered configurations outperformed the fully renewable and mixed renewable-nuclear configurations in terms of cost, with ranges between $1B and $10B in 2023 USDs compared to $40B+ for fully renewable configurations. Of the nuclear technologies, small modular reactors performed better economically than large-scale nuclear models due to lower projected capital costs, and both performed better than the microreactor models. These results demonstrate the applicability of firm, dispatchable electricity resources from baseload generators like nuclear power plants for operating facilities that run at constant power without daily variability.

22 GENERAL STUDIES OF NUCLEAR REACTORS↗

DOE OSTI2023

Assessing the Impact of the Inflation Reduction Act on Nuclear Plant Power Uprate and Hydrogen Cogeneration

On August 16, 2022, Congress passed the Inflation Reduction Act (IRA) to promote investment in new, carbon-free power generation and sustainable operation of existing carbon-free assets. Specifically, the IRA includes both a production tax credit (PTC – Section 45Y of the IRA) and an investment tax credit (ITC – Section 48E) which utilities may leverage to offset the costs of power uprate. Further, the IRA includes a provision (Section 45V) for a PTC associated with carbon-free hydrogen cogeneration. These tax credits, along with recent legislation efforts to decarbonize the country, have re-emphasized the importance of maintaining and optimizing the existing nuclear plant operating fleet. As a result, utilities are reexamining the possibility of uprating their existing nuclear assets to further maximize carbon-free electricity generation.

08 HYDROGEN↗

DOE OSTI2025

Microreactor-liquid metal battery system in energy markets: An evaluation of potential costs, technology, and policy impacts

Microreactors represent an emerging innovation in the nuclear industry; yet have been overshadowed by their high capital costs. With the Inflation Reduction Act of 2022 (IRA), new opportunities have emerged to improve the economics of microreactor systems. This work examines liquid metal batteries (LMB) as a value-adding technology as part of microreactor-LMB systems within three U.S. electricity markets: ERCOT, PJM, and MISO. Our investigation considers key uncertainties: the cost of microreactors, the performance of LMBs, and the eligible tax credit levels. To this end, we use a dispatch optimization to trace not only the changes in system economics but also to provide a granular picture of energy delivery within the systems. We find that even with favorable costs for microreactors, significant regional variations in the project sizing and returns exist across the markets. Our heuristic method identifies their non-electric application potentials beyond electricity and technical requirements to maximize returns. The results suggest that 12–39 % of reactor heat could be cost-effectively diverted to produce more valuable by-products in U.S. markets. Including the impacts of tax credits, we establish the outcomes of each provision with varying rates. Coupling an LMB to a microreactor consistently improves the net present value of a microreactor compared to its standalone operation. In conclusion, for reasonable assumed conditions, we quantify a heterogeneous impact of round-trip efficiency (RTE) and extended LMB service life across the three markets—a one-year extension in LMB service life is roughly equivalent to a 2.11 % improvement in RTE for ERCOT, 1.16 % for PJM, and 1.04 % for MISO.

22 - GENERAL STUDIES OF NUCLEAR REACTORS↗