US issues $25bn loan for nuclear power

The US Department of Energy (DOE) is issuing a US$17.5 billion ($25bn) loan to finance the purchase of necessary materials for the construction of 10 large-scale commercial nuclear reactors across the country, with each generating 1.1 gigawatt (GW) of power.

Once completed, the 10 reactors are capable to provide electricity to power close to 10 million American households.

Issued via the Energy Dominance Financing (EDF), the $25 billion American Nuclear Supply Chain Loans will finance the long-lead equipment necessary for 10 Westinghouse Electric Company's AP1000 nuclear reactors. Westinghouse is a nuclear services business jointly owned by Brookfield Asset Management and its institutional partners (51%) and Cameco Corporation (49%).

They are the only licensed large-scale advanced commercial reactors operating in the US currently, DOE explained, stating that long-lead items are complex components that require the longest time for manufacturing and delivery.

In detail, the financing will support up to five loans, each supporting two reactors at a project site, and five eligible utilities ad energy companies will partner with Westinghouse to procure the long-lead items at a fixed price.

Both Westinghouse and the partner are required to fully commit their project equity, US$500 million ($723m) each (US$1 billion total per project), upfront prior to accessing DOE loan funds, DOE said.

Westinghouse has already signed letters of intent with seven potential partners.

The project marks a major step toward advancing US President Donald Trump's executive order by supporting the objective of having 10 new large nuclear reactors with complete designs under construction by 2030.

"Just over one year ago, President Trump directed the Energy Department and its agency partners to unleash the next American nuclear renaissance," US Energy secretary Chris Wright said.

"To accomplish that mission, these conditional loans will play an important role in reviving the supply chain needed for America to once again build large-scale commercial reactors.

"They will also help accelerate the timeline of building those large-scale reactors by up to three years, lowering construction costs and ensuring the United States is able to deliver on President Trump's bold and ambitious energy addition agenda."

Meanwhile, Brookfield Asset Management chief executive Connor Teskey added: "Westinghouse continues to be at the forefront of major public and private partnerships that will materially accelerate the build-out of large-scale nuclear power generation, help meet growing energy demand, and support energy security in the US."

"The loan facilities help advance President Trump's executive order and serves as a catalyst for nuclear, providing the certainty needed to enhance the domestic nuclear supply chain and accelerate construction of nuclear projects that will deliver reliable baseload power around the country for decades to come."