The U.S. Department of Energy (DOE) has announced a major step to strengthen the country’s nuclear energy sector by offering a conditional loan commitment worth $17.5 billion. The funding, provided through the Office of Energy Dominance Financing (EDF), aims to support the purchase of long-lead time components needed for the construction of new nuclear power plants across the United States.
The initiative is focused on rebuilding the nation’s commercial nuclear supply chain and accelerating the deployment of 10 large-scale nuclear reactors. Long-lead components are specialized parts that require significant manufacturing time and are often responsible for project delays. By securing these components in advance, the DOE expects to reduce construction timelines by as much as three years while also lowering overall project costs.
The funding supports the objectives outlined in President Donald Trump’s Executive Order titled “Reinvigorating the Nuclear Industrial Base.” The order seeks to have 10 new large nuclear reactors with complete designs under construction by 2030. According to U.S. Energy Secretary Chris Wright, the loan program will help revive the domestic nuclear supply chain, reduce costs, and support the administration’s broader energy expansion goals.
The projects will use Westinghouse’s AP1000 reactors, which are currently the only licensed large-scale advanced commercial reactors operating in the United States. The financing structure will allow for up to five separate loans, with each loan supporting two reactors at a project site.
Westinghouse plans to work with up to five utility and energy company partners to procure critical components at fixed prices. Each project will be jointly owned by Westinghouse and its utility partner. To qualify for DOE funding, both parties must contribute $500 million each in project equity, resulting in a total commitment of $1 billion per project.
Westinghouse has already signed letters of intent with seven potential partners that have identified possible project locations. Once completed, the 10 AP1000 reactors are expected to generate around 11 GW of electricity, enough to supply power to nearly 10 million American homes.
The DOE stated that final loan agreements will only be completed after all technical, legal, environmental, and financial requirements are successfully met.
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