FOR IMMEDIATE RELEASE
U.S. DEPARTMENT OF ENERGY AND KAIROS POWER EXECUTE NOVEL PERFORMANCE-BASED, FIXED-PRICE MILESTONE CONTRACT TO ENABLE INVESTMENT IN ADVANCED REACTOR DEMONSTRATION PROJECT
WASHINGTON, D.C. – February 21, 2024 – The U.S. Department of Energy (DOE) and Kairos Power have signed a Technology Investment Agreement to implement an Advanced Reactor Demonstration Program (ARDP) risk reduction award, for which the company was selected in Dec. 2020, to support the design, construction, and commissioning of the Hermes demonstration reactor in Oak Ridge, Tenn.
Under the agreement, DOE will provide up to $303 million to Kairos Power using a performance-based, fixed-price milestone approach, wherein the company will receive fixed payments upon demonstrating the achievement of significant project milestones.
The contracting method has been used by the Department of Defense and follows the significant precedent in NASA’s successful Commercial Orbital Transportation Services (COTS) program. It has proven to be a flexible and effective model to support the development and demonstration of complex technologies through federal partnerships with commercial companies.
“With the use of fixed-price milestone payments, this innovative contract provides real benefits to both Kairos Power and DOE to ensure the successful completion of the Hermes reactor. It allows us to remain focused on achieving the most important goals of the project while retaining agility and flexibility to move quickly as we learn key lessons through our iterative development approach,” said Mike Laufer, Kairos Power co-founder and CEO.
“Kairos Power applauds DOE for pursuing this novel approach to public-private partnerships,” Laufer continued. “This agreement incentivizes efficiency, drives performance, and establishes credibility to deliver.”
“The Hermes reactor is an important step toward realizing advanced nuclear energy’s role in ushering forward the nation’s clean energy transition,” said Dr. Kathryn Huff, Assistant Secretary, Office of Nuclear Energy. “Partnerships like this one play a significant role in making advanced nuclear technology commercially competitive.”
This investment by DOE will complement Kairos Power’s substantial private investment in the Hermes project and supporting infrastructure. Since being selected for the ARDP award, Kairos Power has made steady progress on its pathway to demonstration, standing up extensive testing and manufacturing infrastructure to deliver the Engineering Test Unit series and advancing its fuel and molten salt coolant workstreams.
In December 2023, the U.S. Nuclear Regulatory Commission issued a construction permit to Kairos Power for the Hermes demonstration reactor. Hermes will demonstrate the company’s ability to deliver clean, safe, and affordable nuclear heat and represents a critical step on Kairos Power’s iterative pathway to commercializing its advanced reactor technology.
About Kairos Power
Kairos Power is a mission-driven nuclear technology, engineering, and manufacturing company singularly focused on commercializing the fluoride salt-cooled, high-temperature reactor (KP-FHR) – a clean source of carbon-free energy that can be deployed with robust safety at an affordable cost. Founded in 2016, the company is unique in applying a rapid iterative development approach supported by a vertical integration strategy to bring advanced reactor technology to market. In 2023, the U.S. Nuclear Regulatory Commission issued a construction permit for Kairos Power’s Hermes demonstration reactor – the first non-water-cooled reactor to be approved in the U.S. in more than 50 years. Kairos Power’s mission is to enable the world’s transition to clean energy with the ultimate goal of dramatically improving people’s quality of life while protecting the environment. Learn more at kairospower.com.
Contact:
Ashley Lewis
Corporate Communications
[email protected]
