The Tennessee Valley Authority (TVA) has taken a significant step forward in the advanced nuclear sector by signing a power purchase agreement (PPA) with Kairos Power for electricity from the company’s planned Hermes 2 molten salt reactor in Oak Ridge, Tennessee. This deal marks TVA as the first U.S. utility to contract for power from a Generation IV (Gen-IV) reactor, signaling a potential shift in how utilities and technology developers collaborate to meet growing energy demands.
Under the agreement, Kairos Power’s Hermes 2 plant, now designed as a single molten salt reactor delivering 50 MWe, is set to begin operations in 2030. The project will supply 24/7 carbon-free electricity to TVA’s system, specifically supporting Google’s expanding data centers in Tennessee and Alabama. This collaboration is notable not only for its technological advancements but also for the new model it presents for utilities, hyperscalers, and technology developers working together to address the power needs of the digital economy.
“Here’s how it works: TVA will purchase electricity from Kairos Power’s Hermes 2 plant, scheduled to begin operations in 2030,” said Amanda Peterson Corio, Google’s global head of Data Center Energy, in a blog post. “In this initial phase of the collaboration, we will procure clean energy attributes from the plant through TVA to help power our data centers in the region with locally sourced clean energy, every hour of every day.”
While financial details of the deal remain undisclosed, TVA confirmed it will pay market-based prices fixed based on time-of-day for electricity from the Hermes 2 plant. The contract’s length, full pricing structure, and risk allocation between the parties have not been disclosed. This milestone follows a series of firsts for the advanced nuclear market, including Kairos Power’s landmark agreement with Google to develop 500 MW of advanced nuclear capacity by 2035.
Hermes 2 has also made strides on the regulatory front, becoming the first electricity-producing Gen IV reactor permitted for construction in the U.S. by the Nuclear Regulatory Commission (NRC) in November 2024. Kairos Power has indicated that the planned changes to the reactor’s design do not require substantive licensing amendments, though the company will discuss these changes with NRC staff as part of the pre-application engagement for the operating license.
Kairos Power’s fluoride salt-cooled high-temperature reactor (KP-FHR) technology has been in development since 2016, following a rapid, iterative approach that combines in-house manufacturing, hardware demonstration, and regulatory engagement. The company’s targeted commercial offerings include the KP-X Commercial Demo Plant, anchored by Hermes 2, and the KP-FHR Commercial Plant, a dual-unit, 150-MWe reactor configuration.
The progress on Hermes 2 is part of Kairos Power’s broader strategy to accelerate the delivery of clean energy. The company has already begun construction on its first demonstration reactor, Hermes 1, which is expected to come online in 2027. Additionally, Kairos has made significant strides in establishing production capabilities, including commissioning a molten salt purification plant in Ohio and breaking ground on a dedicated Salt Production Facility in Albuquerque.
This deal between TVA, Google, and Kairos Power could set a precedent for future collaborations in the advanced nuclear sector. As the digital economy continues to grow, the demand for reliable, carbon-free energy sources will only increase. The success of this project could pave the way for more utilities to invest in advanced nuclear technologies, potentially accelerating the commercialization of Gen-IV reactors and other innovative energy solutions.
The implications of this agreement extend beyond the immediate parties involved. It highlights the potential for public-private partnerships to drive innovation in the energy sector and underscores the importance of regulatory support in fostering technological advancements. As the advanced nuclear market continues to evolve, this deal serves as a testament to the growing role of utilities, technology developers, and corporate entities in shaping the future of energy.