NextEra ‘very interested’ in recommissioning Duane Arnold nuclear power plant

NextEra Energy, owner of the shuttered Duane Arnold nuclear plant near Palo, is “very interested” in reopening the plant and is studying whether that’s possible.

John Ketchum, CEO of NextEra Energy, which has owned Duane Arnold since 2005, made his comments during a company earnings call Wednesday.

“We’re busy looking at Duane Arnold. We’re very interested in recommissioning the plant,” Ketchum said in a recording of the call. He added that the Iowa plant uses a boiling water reactor, which he called a “simpler design.”

"That gives us optimism of being able to do this at an attractive price and without as much risk," he said.

Ketchum told investors the company is conducting engineering studies and speaking with the Nuclear Regulatory Commission and local stakeholders on a possible restart.

In June, Ketchum told Bloomberg NextEra “would consider” reopening the plant “if it could be done safely and on budget.”

When The Gazette reached out to NextEra after the Bloomberg interview published, a company spokesperson said NextEra had not performed “a formal study of the feasibility of restarting operation at Duane Arnold.”

Recommended Reading

NextEra CEO says he’d ‘consider’ restarting Duane Arnold nuclear power plant

In response to a question asked during Wednesday’s call about whether NextEra would want to retain ownership of the Duane Arnold plant “over the long term,” Ketchum called it a “very attractive asset” and said the company would “hope to be able to get an attractive” power purchase agreement for electricity produced by the plant.

"Obviously, it goes without saying, there's very strong interest from customers, really data center customers in particular around that site," Ketchum said, according to CNBC.

Data centers drive increased demand for electricity

Construction of data centers has been driving increased demand for electricity across the country.

Last month, Constellation Energy, owner of the Three Mile Island nuclear power plant near Harrisburg, Penn., said it plans to restart the reactor. The plant, which has been closed for five years, will have a 20-year agreement to sell its power to Microsoft to supply the company’s data centers.

There are 30 data centers in Iowa, with more planned to be built.

Earlier this year, Google announced it was considering building a $576 million data center north of The Eastern Iowa Airport, in the Big Cedar Industrial Center, near 76th Avenue SW and Edgewood Road SW in Cedar Rapids. At the time, the city said it would be the largest development in Cedar Rapids history.

In September, the Cedar Rapids City Council approved a term sheet with tentative deal points for a development agreement with SNA LLC for construction of two or more data center buildings, also in the Big Cedar Industrial Center. That development would be a $750 million project, even larger than the Google development.

Regulators ‘waiting to see’ if NextEra files to restart Duane Arnold

Scott Burnell, public affairs officer for the Nuclear Regulatory Commission, said the agency is aware of NextEra’s interest in restarting the Iowa plant.

“We’re waiting to see if the company files formal plans and requests,” Burnell said in an email to The Gazette on Thursday.

Burnell said regulators met with Holtec International “months ago” to discuss its plans to restart the Palisades nuclear plant in Covert Township, Mich. In September, the U.S. Department of Energy announced the closing of a loan guarantee of up to $1.52 billion under the Inflation Reduction Act’s Energy Infrastructure Reinvestment program to Holtec to finance the nuclear plant.

The Nuclear Regulatory Commission is scheduled to meet Friday with Constellation Energy about the Three Mile Island plant.

“It’s reasonable to expect NextEra would do the same if the company decides to pursue restarting Duane Arnold,” Burnell said.

Linn County Emergency Management Agency Coordinator B.J. Dvorak said he has not heard anything from NextEra about restarting the plant.

Don Tormey, director of communications for the Iowa Utilities Commission said NextEra has not contacted the commission about restarting the plant.

Tormey said the plant will have to submit a permit or application with federal agencies before submitting to the IUC.

The Duane Arnold nuclear plant opened in 1974 under ownership of what is now Alliant Energy. It employed more than 500 people when it closed in August 2020. Between September 2020 and September 2022, the Duane Arnold Energy Center reported it would lay off 261 employees, according to notices filed with Iowa Workforce Development.

The plant was scheduled in 2019 to be decommissioned in October 2020 when Alliant, Duane Arnold’s primary customer, agreed to a $110 million buyout to end its power purchase agreement. When the August 2020 derecho caused some external damage, NextEra agreed to start the closure process early.

Olivia Cohen of The Gazette contributed to this report.