The agency said Westinghouse and a utility or company partner will jointly own each project and have to fully commit their project equity—$1-billion total per 1.1-GW project—upfront to access loan funds. 

DOE also said that the company, which manufactures the AP1000 design, will partner with up to five eligible U.S. utilities and energy firms to procure long-lead component items “at a fixed price.”  According to the agency, the loans for bulk equipment purchases will boost the nuclear sector's efforts to restart and build new plants with needed financing, create new supply chain efficiencies and shorten project deployment timelines by up to three years. 

RELATED STORY:  Holtec's Indian Point Nuclear Plant Cleanup Awaits Crucial Water Release Verdict  __

The last two U.S. nuclear units using the AP1000 design were completed in 2023 at Georgia Vogtle power plant, but the project was challenged with planning, supply chain, global pandemic and other issues, said Energy Secretary Chris Wright, He said the AP1000 design is "robust and sound," and worth replicating.

“It’s another reason we’re working on building 10 plants,” he said, referencing the overall administration goal. “Think of the supply chain for that, and the same team can build in volume and at multiple locations." Wright claimed that the more standardized approach "will build a lot of construction expertise," adding that new plant cost and timing "will outperform what was done on Vogtle.”   

Purchases for each project “will be staggered based on the timing of equity commitments and other relevant factors,” according to the announcement. Westinghouse has signed letters of intent with seven potential partners, each with identified project sites, but not disclosed publicly. "The US has taken the biggest step towards a nuclear renaissance in decades," said Thomas Hochman, energy director at the Foundation for American Innovation, in a social media post.

Pushing Standardization

According to Washington, D.C.-based market research firm Capstone, the regulated utilities best positioned to access the DOE loans include Dominion Energy, DTE Energy, WEC Energy Group, Public Service Enterprise Group and Entergy Corp. It expects more details on loan recipients will be known by the end of the year. 

Loans would help companies procure items such as reactor vessels and steam generators, which can take years. "Long lead items funded by these loans are completely standardized to the point of being interchangeable between projects," Julie Kozeracki, acting chief investment officer in DOE's loan office, told media.  The agency expects the program to expand U.S. nuclear plant manufacturing capacity, said Greg Beard, loan finance program chief. Some hyperscalers may even take equity stakes in nuclear plant projects, he added. "We are confident that these projects will be economic for utility shareholders, ratepayers and hyperscalers," Beard said, adding that a competitive process to select engineering, procurement and construction companies also is intended, but with no detail released. Wright said hyperscalers are expected to sign long-term offtake agreements up front for financial stability.

Uncertainties over the loan program include how much funding DOE ultimately will cover for certain components, the utilities and companies to be involved, reactor locations and any impacts on planned construction starts.

Expanding the Nuclear Footprint

The announcement advances President Donald Trump's 2025 executive orders directing deployment of 300 GW of net new nuclear capacity by 2050, and having 10 large reactors under construction by 2030. It also follows an $80-billion federal agreement with Westinghouse owners, Canada-based companies Cameco and Brookfield Asset Management, with which DOE would arrange financing and help secure reactor permits in exchange for a 20% share of future profits. The federal aim is to grow the U.S. nuclear footprint from about 100 GW to 400 GW by 2050. 

But concerns remain. Loans are “a drop in the bucket compared to the likely total project cost for ten AP1000 reactors,” Edwin Lyman, director of nuclear power safety at the Union of Concerned Scientists, told Utility Dive. The total cost could approach $200 billion, he said, adding that "none of these potential projects is backed up with an actual contract for construction.” He questioned if orders for components "will have to be cancelled if actual projects do not materialize.”

Meanwhile more states are actively reconsidering new or expanded nuclear power. DOE claims more than 25 states have passed supportive legislation, which includes small modular reactors (SMRs) and other advanced next-generation technology. On June 24, Arizona Public Service, Salt River Project, and Tucson Electric Power announced they would add new generation to Palo Verde Generating Station, with some of its units in service for 40 years. Utilities said a siting study would finish in six months. Texas also wants more advanced nuclear, with the seeking applications for a $350-million nuclear construction fund.

New York released this month a draft outline for its plan to develop 5 GW of new nuclear power across the state, including at least 1 GW upstate. According to the New York Power Authority, eight upstate communities and 23 developers have expressed interest in the effort, although a moratorium still exists in parts of the state, and legislators could weigh new proposed bans. New Jersey Gov. Mikie Sherrill (D) signed legislation shortly after assuming office in January that removed a permitting hurdle which discouraged new nuclear capacity. "For costs to come down, we need more energy supply. New Jersey is well-positioned to be a leader in next-generation nuclear energy ... and we are open for business," she said. Two operating plants provide about 42% of the state's power.

"We want 24/7 power. Where is the intersection between 24/7 power and the ability to scale?" Mike Kramer, Constellation's vice president for data economy strategy, told attedees at a Reuters energy conference in New York City June 23. "We won't see winners between renewables, nuclear and gas. There will be a lot of combination." 

Brian Savoy, CFO of Duke Energy, described as the largest regulated U.S. nuclear utility, noted that strong nuclear support from govenrments in countries such as Poland and China offer the "right amount of risk sharing." 

Meanwhile, a DOE pilot program to contract with 10 private firms to build and operate advanced experimental reactors outside of national laboratories is fast approaching a July 4 deadline to have at least three facilities reaching "nuclear criticality." Two so far say they have passed that milestone—Antares Nuclear, a California microreactor developer, and Valar Atomics, now building an advanced reactor. 

“Two reactors have gone critical, for the first time in 40 years," Wright told Reuters attendees. "We expect the third by July 4," although he did not disclose the name of any firm set to do so.

What CANDU Can Do

Also, despite federal support for the AP1000 nuclear design, AtkinsRéalis, developer of Canada’s core reactor design CANDU, which is cooled with pressurized heavy water, said June 24 that it has begun the process for U.S. Nuclear Regulatory Commission licensing. “As the United States enters a new chapter in its civilian nuclear program, AtkinsRealis is uniquely positioned, as the steward of CANDU technology, to help advance the country’s ambitious energy policy through proven, low-cost reactor technology with a world-class reputation,” said firm President and CEO Ian Edwards.

Canada also has announced in recent days an updated national Nuclear Energy Strategy, a long-term vision of nuclear power potential that includes plans to deploy up to 10 new large-scale reactors by 2040 along with two ongoing projects in Ontario. The plan calls for at least one reactor outside Ontario to operate or be in construction by 2035, and a microreactor demonstrated by 2035 and deployed to a rural community by the late 2030s. 

The country would ensure that a "modernized, cost-competitive" CANDU reactor design is in place by 2030 for domestic use and potential export. "We are moving at speeds not seen in generations to get big things done and leveraging preexisting strengths to become a modern energy superpower," Minister of Energy and Natural Resources Tim Hodgson said in a statement.