The $17,5 billion package will support a maximum of five loans. Each loan will facilitate the construction of two 1,1 GW reactors at each site, according to the US Department of Energy.

This loan package aims to implement an $80 billion agreement between the DOE and nuclear power technology company Westinghouse Electric. Under the agreement, the US government will assist in arranging financing and expedite the licensing process for Westinghouse reactor projects in exchange for a 20% share of future profits.

A view of the Plant Vogtle nuclear power plant project in Georgia. *Georgia Power*

For many years, the US nuclear power industry has struggled to attract investment. This is due to projects requiring substantial capital, often exceeding budgets, and facing complex legal procedures. These factors have made them riskier compared to cheaper, faster-to-deploy options such as natural gas or renewable energy.

US Secretary of Energy Chris Wright expects the loan package to help the US achieve its goal of initiating construction on ten new large-scale nuclear reactors before 2030, potentially shortening this timeline by three years.

According to Wright, the program has garnered significant interest from energy companies and hyperscalers. These hyperscalers have high electricity demand from data centers supporting artificial intelligence (AI).

"We believe nuclear power projects will deliver economic benefits to utility shareholders, electricity consumers, and hyperscalers", he said.

Brookfield Asset Management CEO Connor Teskey stated that the DOE loans will provide a crucial boost for the US nuclear power industry's recovery. "This funding acts as a catalyst and foundation for the nuclear power industry, strengthening the domestic supply chain and accelerating the construction of projects that will provide stable power to the entire country for decades to come", he said.

Phien An (according to Reuters)