Statement by X-energy in Support of Inflation Reduction Act

Statement by X-energy in Support of Inflation Reduction Act

X-energy applauds the game-changing policies in the Inflation Reduction Act that will drive US leadership in energy investment, diverse generation sources, and energy security as we transition our economy to clean energy. As a part of the burgeoning advanced nuclear industry, this legislation recognizes the role this technology can play towards America’s future energy leadership. By incentivizing and leveling the playing field for clean energy technologies we can expect huge dividends in our transition to a clean energy economy that will bring affordable and reliable power to ratepayers. When enacted, these provisions will encourage private investment in these technologies, accelerate deployment, and assure energy security domestically and internationally.

Enabling the launch of high-assay low-enriched uranium (HALEU) production in the U.S.  has remained the critical supply chain gap for the advanced nuclear industry. The IRA provides for $700 million to support the immediate reestablishment of a domestic commercial enrichment capability to fuel the next generation of nuclear reactors. The inclusion in the IRA acknowledges the urgency to establish a secure nuclear fuel supply chain enabling deployment of these advanced reactors in the later part of this decade.

The IRA also provides a technology-neutral level playing field for clean energy tax credits for the first time. These provisions will allow innovative clean energy technologies like advanced nuclear to compete on an equal footing with more established renewable technologies by providing equal tax credits, regardless of the technology employed, at the credit value of the existing wind production tax credit and solar investment tax credit. The ultimate benefit of this is being able to optimize reliable and resilient grids by combining clean baseload power with intermittent energy sources.

Finally, the IRA will establish a new grant program to decarbonize heavy industry. According to the U.S. Energy Information Administration, the industrial sector accounted for one-third of all energy consumption in 2021. This sector’s carbon emissions are the most challenging to abate, because they often rely on a combination of electricity inputs and industrial-grade heat inputs to the manufacturing processes that enable our modern products. Advanced nuclear technologies, like X-energy’s Xe-100 reactor are capable of providing electricity and process heat to decarbonize industrial sectors. The new DOE program that will be established can demonstrate innovative uses of advanced nuclear technologies to power the future of clean manufacturing across many U.S. industries.

X-energy thanks Senator Manchin for his leadership and urges passage of this transformative legislation.

Sincerely,

J. Clay Sell
Chief Executive Officer