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NextEra Energy plans to turn Iowa’s only nuclear power plant into a solar farm

March 25, 2021

U.S. energy company NextEra Energy announced plans last week to build a 690-megawatt solar project at the site of its closed Duane Arnold nuclear plant in Palo, Iowa.

The company shut the nuclear reactor in August 2020 after a massive storm damaged the plant’s cooling towers. Though, it was already slated for closure in October 2020 because the plant didn’t fit Iowa’s increasingly wind and solar-based energy portfolio.

The new solar farm plus storage will replace the single-unit, 615-megawatt nuclear plant, which powered more than 600,000 homes. NextEra also intends to include up to 60 megawatts of AC-coupled batteries for power storage.

NextEra’s NextEra Energy Resources unit proposed to build the $700 million solar project, which it says on its website will create about 300 construction jobs if given local and state approval.

NextEra will negotiate leases with landowners in summer 2021 and begin construction in winter 2022. The Iowa project will encompass about 3,500 acres and the company intends to have the solar farm operational by the end of 2023.

The solar project would create about $41.6 million in tax revenue and result in $50 million in payments to the landowners where it is built, according to the NextEra website.

Previous coverage

State Auditor releases report reviewing solar energy projects at public entities -March 4, 2021

Iowa Energy Center board awards $2.7 million in energy grants -Sept. 21, 2020

NextEra Energy plans to turn Iowa’s only nuclear power plant into a solar farm | Clay & Milk

A central Iowa ag-tech accelerator has secured more backers and finally has a name. The Greater Des Moines Partnership first announced the accelerator last year, naming four initial investors. On Monday, the Partnership said the program will be called the "Iowa AgriTech Accelerator" and named three new investors. The new investors include Grinnell Mutual, Kent Corp. and Sukup Manufacturing, all Iowa companies. They join investors Deere & Co., Peoples Co., Farmers Mutual Hail Insurance Co. and DuPont Pioneer. Each investor has agreed to put up $100,000 for the first year of the accelerator. Startups entering the program will receive $40,000 in seed funding in exchange for 6 percent equity. Tej Dhawan, an angel investor and local startup mentor, is serving as interim director until the AgriTech Accelerator names a permanent leader. Dhawan held a similar role with the GIA before Brian Hemesath was named as managing director. As interim director, Dhawan said his main job includes hiring the accelerator's executive director, establishing a business structure and initial recruiting for the first cohort. The accelerator will place few filters, such as location and product, on the applicant pool, Dhawan said. "When you’re seeking innovation, innovation can come from every corner of the world so why restrict ourselves," he said. One area the the AgriTech Accelerator won't recruit from is biotech. For its first cohort, the AgriTech Accelerator will work out of the GIA's space in Des Moines' East Village, Dhawan said. A future, permanent home is still to be decided. The accelerator's program will host startups from mid-July through mid-October, ending with an event connected to the annual World Food Prize. The GIA, which the AgriTech Accelerator is based on, also ends with presentations at an industry event. The accelerator has also started lining up a mentor pool. The Iowa Corn Growers Association, Iowa Soybean Association and the Iowa Pork Producers Association have agreed to provide mentors, as has Iowa State University. While the AgriTech Accelerator is loosely based off of the GIA, it will differ in its business structure, Dhawan said. The GIA runs through a for-profit model for both operations and its investment fund. The AgriTech Accelerator will have a nonprofit model for its operations and a for-profit setup for its fund. Dhawan said the nonprofit model is being used so the accelerator can better work with other nonprofit partners, such as trade associations. "These are all organizations that are nonprofits and can be amazing stakeholders without ever having to be investors in the accelerator," he said. "It becomes easier to work with trade associations in their nonprofit role when we are also a nonprofit." When it's up and running, the AgriTech Accelerator would be one of a handful of ag-focused startup development programs in Iowa. Others include the Ag Startup Engine out of Iowa State University and the Rural Ventures Alliance from Iowa MicroLoan. Matthew Patane is the managing editor and co-founder of Clay & Milk. Send him an email at mpatane@clayandmilk.com.

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