US offers $17.5bn funding to build 10 nuclear reactors

The US Department of Energy has announced that it would make available $17.5 billion in loans to support the development of 10 large nuclear reactors at five sites, as part of the Trump administration's push to rebuild the domestic nuclear supply chain and expand nuclear power generation.

The financing, to be provided through the Department's Office of Energy Dominance Financing, would support up to five projects sponsored by utilities and energy companies, with each project comprising two reactors.

The DOE said the loans would help finance the purchase of long-lead equipment, including components that require extended manufacturing and delivery times, and could accelerate deployment of the reactors by as much as three years.

The programme supports President Donald Trump's executive order aimed at reviving the US nuclear industry, including a target of having 10 new large-scale reactors under construction by 2030.

Energy Secretary Chris Wright said the financing would help rebuild the domestic supply chain for commercial nuclear reactors and reduce project timelines and construction costs.

Westinghouse, whose AP1000 reactor is the only licensed large-scale advanced commercial reactor currently operating in the US, will partner with up to five eligible utilities and energy companies to procure long-lead equipment at fixed prices, the department said in its statement.

Each project will be jointly owned by Westinghouse and its utility or energy company partner. The partners must commit a combined $1 billion in equity before accessing federal loan funds, with Westinghouse and its partner each contributing $500 million, according to the DOE.

The department said Westinghouse has signed letters of intent with seven potential partners that have identified project sites.

Each AP1000 reactor will have a generating capacity of about 1.1 gigawatts, with the 10 planned reactors capable of producing enough electricity to supply nearly 10 million US households, it stated.

The DOE said the loan commitment remains conditional and is subject to the completion of technical, legal, environmental and financial requirements before any financing agreements are finalised.