Aalo and Idaho Falls Power reach agreement on potential microreactor siting
Microreactor developer Aalo Atomics and municipal electric utility Idaho Falls Power have developed a memorandum of understanding that could lead to the siting of seven sodium-cooled microreactors and a power purchase agreement for Idaho Falls.
The news was announced by Aalo, Idaho Falls Power, and the city of Idaho Falls on September 16. While Aalo says the project is “slated to go on line before the end of the 2020s,” Idaho Falls Power says the project “is not expected to come on line before 2030.”
Factory approach: The MOU “sets the stage for the deployment of seven factory-built Aalo-1 reactors, totaling 75 MW of power generation,” Aalo said. The company is currently constructing a nonnuclear test of its reactor concept at a new facility in Austin, Texas, and “subsequently will build its first nuclear reactor at [Idaho National Laboratory], called the Aalo Experimental reactor (Aalo-X).” The 10-MWe microreactors Aalo wants to deploy in partnership with Idaho Falls Power would then be constructed at the Texas facility.
“The reactors for this project could be the first factory-built commercial microreactors in this country,” said Yasir Arafat, chief technical officer of Aalo Atomics. “This approach will allow significantly higher predictability in quality, cost, and schedule than today’s large-scale plants, which at best take nearly a decade to build.”
Aalo stated in its press release that building a nonnuclear test reactor followed by an experimental reactor “will prove the technology and economics in a low-risk, incremental way. In line with this development philosophy, the MOU stipulates that the project will only proceed to full construction once specific cost and uncertainty milestones are met, protecting both Aalo and Idaho Falls Power from potential setbacks.”
On location: Idaho Falls Power says the agreement would permit Aalo to lease land for the life of the project—up to 80 years—at the utility’s new Energy Research Park, where a 17.5-MWe natural gas peaking plant is currently under construction.
“The electric utility industry is facing major challenges meeting demands while still maintaining affordable, reliable service. Aalo’s innovative approach to advanced nuclear with no emissions appears to have the right risk and economics for our utility to take this next step,” said Bear Prairie, general manager of Idaho Falls Power.
Before the Utah Associated Municipal Power Systems Carbon Free Power Project was canceled in November 2023, Idaho Falls Power expected to draw 5 MWe from a NuScale small modular reactor power plant on INL’s desert site. The utility’s Energy Research Park—and Aalo’s proposed project site—is closer to the town of Idaho Falls.
The utility would use just part of the 75 MWe generated, and Aalo would market the remaining power to “surrounding municipalities and other commercial applications.”
The project “invites other potential off-takers, including data center companies, who are eager to explore the full potential of fleets of small nuclear reactors to unlock the further acceleration of AI,” explained Matt Loszak, chief executive officer of Aalo.
“Idaho Falls Power is no stranger to innovation and this utility has always been interested in developing the smartest possible energy resources for the public,” said Idaho Falls mayor Rebecca Casper. “A partnership with Aalo whereby we provide space for modeling and development at our Energy Research Park while it develops and proves its technology at INL just makes sense.”
A closer look at timelines: It its announcement, Idaho Falls Power said that it is not counting on power before 2030: “With design, approval, and construction, Aalo’s Idaho Falls Project is not expected to come on line before 2030.”
Aalo submitted a regulatory engagement plan to the Nuclear Regulatory Commission in July, saying it plans to submit an application for a 10 CFR Part 52 combined operating license in 2026 for a nonpressurized, pool-type reactor with sodium as both the primary and secondary coolant. In the REP, Aalo says the project “is to be operational by 2029,” providing electricity from a “cluster of small sodium-cooled microreactors with uranium zirconium hydride (UZrH) fuel elements.”
As noted in the REP, “The Aalo Atomics core nuclear technology and experience stem from the System for Nuclear Auxiliary Power SNAP10A program and Idaho National Laboratory’s MARVEL reactor.” Arafat worked on MARVEL as its chief designer and project lead prior to joining Aalo in October 2023.
The MARVEL timeline has shifted over the past year. As late as May 2023, MARVEL operation was expected “by the end of 2024,” but in October 2023, the Department of Energy said MARVEL “is expected to be completed in early 2025.” According to a DOE announcement in February, “Fuel loading for MARVEL is anticipated to occur in 2026, with the microreactor expected to be on line by 2027.” A July 2024 update from INL said “commissioning of MARVEL is targeted for 2027.”
