The U.S. Department of Energy announces American nuclear supply chain loans
The U.S. Department of Energy’s (DOE) Office of Energy Dominance Financing has issued a conditional loan commitment to finance the purchase of long-lead time items needed to rebuild America’s commercial nuclear supply chain. The USD 17.5 billion American Nuclear Supply Chain Loans programme will support five eligible projects sponsored by utilities and energy companies, accelerating the deployment of 10 large-scale commercial nuclear reactors across the United States by up to three years.
The initiative advances President Donald Trump’s Executive Order Reinvigorating the Nuclear Industrial Base, which aims to have 10 new large reactors with complete designs under construction by 2030. According to U.S. Energy Secretary Chris Wright, the programme will help revive the domestic supply chain needed to build large commercial reactors again.
The 10 Westinghouse AP1000® units—currently the only licensed large-scale advanced commercial reactors operating in the United States—will each generate 1.1 GW, providing enough electricity to power nearly 10 million homes. Wright added that the bulk equipment purchasing model will help rebuild the nation’s nuclear manufacturing base by providing the financing needed for critical supply chain investments.
The U.S. initiative plans to have 10 new reactors with complete design under construction by 2030
The loans will finance the procurement of long-lead-time components, including reactor pressure vessels, steam generators, turbine generators, reactor coolant pumps and control systems, which require years to manufacture. The funding is intended to secure production capacity, lower project costs and reduce construction risks by enabling bulk purchasing and greater certainty for manufacturers.
The funding is intended to secure production capacity, lower project costs and reduce construction risks
Under the programme, the DOE will support up to five loans, each covering a project with two AP1000 reactors. Westinghouse will partner with participating utilities and energy companies to procure long-lead equipment at fixed prices, while each project sponsor will contribute at least USD 500 million in equity before DOE financing is released.
The DOE said the initiative is expected to stimulate investment throughout the U.S. nuclear supply chain, strengthen domestic manufacturing, create skilled jobs and increase confidence for suppliers to expand production capacity. By securing critical components early, the programme is also intended to improve project schedules and support the timely deployment of new nuclear capacity needed to meet growing electricity demand.
This project aims to support the timely deployment of nuclear capacity needed to meet growing nuclear demand
Source: DOE
