US Army Awards Up to $2.2 Billion for Microreactor Development on Military Bases

The U.S. Army announced on Wednesday it has awarded contracts potentially worth up to $2.2 billion to five companies to construct and operate small-scale nuclear reactors on military installations. The initiative, dubbed Project Janus, aims to bolster energy resilience for remote bases and accelerate the development of a commercial market for microreactor technology.

Program Details and Awardees

The Army's Janus program has a stated goal of deploying its first operational microreactor by September 2028. These factory-built nuclear plants are designed to be transportable and generate up to 20 megawatts of power each, providing a reliable energy source for installations in locations like Alaska or on islands.

The five selected companies and their designated bases are:

• Antares Nuclear Inc: Fort Bragg, North Carolina
• BWXT Advanced Technologies LLC: Fort Campbell, Kentucky
• General Atomics Electromagnetic Systems: Fort Hood, Texas
• Radiant Industries Inc: Fort Benning, Georgia
• Westinghouse Government Services: Fort Drum, New York

While the Army did not specify the allocation for each company, Radiant Industries disclosed that its award could be worth up to $750 million for the development and deployment of 15 of its Kaleidos reactors, according to a company statement.

Strategic Goals and Market Implications

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A key driver for the program is reducing the high cost of energy at remote bases, where the military currently pays approximately 40 cents per kilowatt-hour for power at Arctic installations, according to an Army official. The program is also designed to attract private capital to advance the technology.

"The whole idea here is that at the back end of this we want a commercial product," said Jeff Waksman, the principal deputy assistant secretary of the Army for Installations, Energy and Environment. For developers, the Army contract serves as a critical step toward commercialization. Radiant’s Chief Commercial Officer, Mike Starrett, told Reuters the award is key to scaling its business to serve commercial clients like data centers by about 2030.

Regulatory and Cost Considerations

An Army official clarified that while the reactors will be regulated by the Army, not the U.S. Nuclear Regulatory Commission (NRC), they will be required to adhere to all environmental and safety rules applicable to commercial nuclear plants.

Addressing concerns that microreactors will be more expensive than conventional power sources, Waksman acknowledged they are not expected to be cheaper initially. However, he stated the Janus program is intended to "flesh out how can we get those prices down" through innovation and scaled production.