U.S. needs major nuclear power expansion to meet rising electricity demand, Southern Company CEO says
The United States needs to build a significant number of nuclear plants to supply surging energy demand while also meeting climate goals, the CEO of Southern Company said at an event on Thursday.
“This country will need more nuclear plants going forward,” Chris Womack said at the Reuters Global Energy Transition conference in New York City.
“It’s upwards of 10 large gigawatts of nuclear power that I think we have to have going forward,” the CEO said. This is equivalent to about 10 new nuclear plants with a single reactor each. The typical reactor in the U.S. produces about a gigawatt of electricity, according to the Department of Energy.
Based on market capitalization, Southern Company is the second largest name in the Utilities Select Sector SPDR Fund (XLU). It’s also one of the largest providers of electricity in the nation, serving millions of people across Georgia, Alabama and Mississippi.
Last year, the Atlanta-headquartered utility completed the first nuclear plant in the U.S. in more than three decades, with the second of two new reactors having started commercial operations in April.
Womack said Southern Company is seeing a level of electricity demand that that the utility has not faced since the advent of air conditioning and heat pumps in the South in the 1970s and 1980s. After two decades of nearly flat power growth, Southern Company is now expecting demand to grow by three to four times, the CEO said.
“A lot of this is dependent and contingent upon what we see with artificial intelligence and all those large learning models and what data centers will consume,” Womack said. “You’re also seeing in the Southeast, this incredible population growth and you’re seeing all this onshoring with manufacturing.”
Unit 3’s reactor and cooling tower stand at Georgia Power Co.’s Plant Vogtle nuclear power plant in Waynesboro, Georgia, on Jan. 20, 2023.
John Bazemore | AP
Atlanta is one of the fastest growing data center markets in the nation, with construction growing by 211% increase to 732 megawatts in 2023, according to the real estate service firm CBRE. Utility stocks have made a comeback in 2024 on the power trend, with Southern Company up 11% year to date.
Womack said 80% of the demand Southern Company is facing between now and the end of the decade will be supplied by renewable energy, but natural gas and nuclear will also play key roles in providing reliable power.
“Nuclear has got to be a big part of this mix, of [the] decarbonization focus as we go forward to make sure we’re having the power and the energy and the electricity this economy needs,” Womack said.
Nuclear has the advantage of providing reliable electricity without emitting any carbon emissions, while renewables will need cheaper, longer duration batteries before they power facilities like data centers around the clock at commercial scale.
But building new nuclear plants is expensive, and the permitting and construction process is time consuming. The new nuclear reactors that Southern Company built at the Plant Vogtle in Georgia opened some seven years behind schedule and cost more than $30 billion, at least double the original projections, according to the Energy Information Administration.
Not everyone in the power industry is convinced that nuclear is the way forward. AES Corporation CEO Andres Gluski said earlier this month the he thought the “euphoria” over nuclear power is a “little over blown.” AES is major supplier of power for tech companies building out data centers.
There is only so much existing nuclear energy that merchant power providers can re-contract to sites such as data centers, Gluski told CNBC. “The question is, going forward, what’s the price of new nuclear,” he said.
Womack said the government has to put the right incentives in place and ensure that there is a way to mitigate cost overruns in building new nuclear plants. The CEO said developing small modular nuclear reactors is also key. These smaller nuclear plants, which are still under development, are in theory easier to site and not as capital intensive as traditional plants.
GE Vernova CEO Scott Strazik told CNBC Thursday that small modular nuclear reactors will become an important part of the energy mix. The company will commission a small modular reactor in Ontario, Canada in 2029.
“Small modular reactors are going to become a much bigger piece of the equation,” Strazik told CNBC’s “Squawk Box” at the Aspen Ideas Festival. “No question it will be.”
CASE CE is responding to government regulations that are pushing industries towards a zero-emission future by developing a new line of all-electric equipment – which now includes a new, 3.8 ton compact wheel loader.
Last week, CASE Construction Equipment introduced the 12EV, an all-electric 3.8 ton compact wheel loader with a 1.5 ton payload capacity that the company says demonstrates its commitment to zero emissions and alternative fuel solutions.
These new electric vehicles mean more choices for CASE customers, enabling them meet their carbon footprint reduction targets and eco-efficiency goals while providing power and performance on par with their conventional, diesel-powered offerings.
The CASE 12EV comes equipped with a 23 kWh, cobalt-free, lithium-ion battery sends power to a 17 kW motor that delivers drive to the axles, as well as a 22 kW motor that powers the hydraulic system for the loader arms and bucket cylinder. The battery pack is good for up to six hours of continuous operation (depending on load). It can charge overnight on 220V Level 2 charging, or from 10 to 80% on a DC fast charger in just under an hour.
But wait, there’s more!
The 12EV wheel loader is the third production BEV from CASE, following the introduction of the CX15EV and the CX25EV mini excavators that weigh in 1.5 and 2.5 tons, respectively. The excavators are powered by 21.5 kWh and 32.3 kWh battery packs, respectively, sized to enable “full shift” runtime.
CASE showed off its full line of electric excavators at a UK earlier this summer, the first time UK equipment operators and other stakeholders a chance to sample the battery electric machines and learn about a variety of other carbon reducing initiatives, including sustainable charging and waste management.
Electrek’s Take
We had the chance to interview CNH (CASE/New Holland) chief innovation officer (CIO) Marc Kermisch on the Heavy Equipment Podcast a few weeks ago, where we discussed the impact of automation and electrification on construction and agriculture, the lack of new farm and equipment operators, alternative fuels, and more. You can check that out, below, and let us know what you think of CASE’s sustainable roadshow in the comments.
SOURCE | PHOTOS: CNH/CASE CE.
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Fifty million miles. Eighty million kilometers. Two thousand laps around Carl Sagan’s pale blue dot. However you measure it, there’s no denying it: Volvo Trucks have driven a whole lot of battery-electric miles!
Since Volvo Trucks began delivering its first generation of all-electric semi trucks to customers in 2019, the trucks have dramatically reduced fleets’ harmful carbon emissions, reduced their operating costs, and improved the working environment for drivers with smoother, quieter, and cleaner operation.
How much cleaner? Volvo claims that covering the same fifty million distance with equivalent diesel-powered trucks would have consumed more than 25 million liters of diesel fuel and more than 68,000 tons of carbon dioxide.
It pays off to be an early adopter – transport companies with electric trucks have a strong competitive advantage when being able to offer emission-free transport to transport buyers.
“I am happy to see how transport companies are embracing the benefits with electric trucks in daily operations,” says Roger Alm, President Volvo Trucks. “The transport sector represents 7% of global carbon emissions and battery-electric trucks is an important tool to reduce the climate footprint. Thanks to many early adopters we can already now see the huge potential with this technology.”
We’ve come a long way
Since 2019, Volvo Trucks’ global deliveries of electric trucks increased grew to 1,977 Class 8 trucks in 2023 (up 256% from the year before, and still growing, as the company sees continued interest from customers in 2024). In addition to sheer numbers, Volvo has market share. In Europe, more than 50% of electric truck buyers chose a Volvo during Q1 of ’24 – fully 56%, in fact, with a 44% share of electric trucks sold in the US, as well.
“Not only transport companies, but also buyers of transport – and logistic services are signing up to SBTi (Science Based Target initiative), and are starting to demand sustainable transport solutions from their providers,” says Alm, about the 3,500 electric Volvo semis sold in 45 countries (so far). “This is yet another driver of the shift to electric trucks.”
Electrek’s Take
I talked about the head start companies like Einride and Freightliner had in developing autonomous driving for commercial trucks even as companies like Walmart and McDonald’s are turning to Tesla’s competitors instead of waiting for its Semi in today’s episode of Quick Charge – and I didn’t need Reuters to tell me that.
That said, fifty million miles and five years is one heck of a head start.
SOURCES | IMAGES: Volvo Trucks, Reuters.
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