US allocates $17.5bn for nuclear supply chain development

The US Department of Energy has announced that its Office of Energy Dominance Financing has offered conditional loans to finance the purchase of long-lead time items needed for the commercial nuclear supply chain.

The DOE explains that long-lead items are complex components of a nuclear power plant that require the longest time for manufacturing and delivery.

To ensure that these lead times don’t hinder the development of nuclear energy, the Office of Energy Dominance Financing is making available $17.5 billion in nuclear supply chain loans.

The loans will allow for a bulk equipment purchase order structure, which facilities lower costs for individual nuclear components, creates supply chain efficiencies, and shortens timelines for nuclear deployment.

The DOE expects delivery timelines could be shortened by up to three years.

The loans will help finance five projects and speed up the deployment of 10 planned large-scale commercial nuclear reactors.

According to US Energy Secretary Chris Wright, the loans form part of President Trump’s plan to usher in an American nuclear renaissance and have 10 new large nuclear reactors with complete designs under construction by 2030.

Wright said: “These conditional loans will play an important role in reviving the supply chain needed for America to once again build large-scale commercial reactors,” adding that they will also ensure lower construction costs.

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Westinghouse’s 1.1GW AP1000 units are the only licensed large-scale advanced commercial reactors currently operating in the US. Westinghouse will therefore partner with the five eligible utilities and energy companies to procure the long-lead items at a fixed price. Each project will be jointly owned by Westinghouse and a utility or energy company partner.

The DOE states that in order to access the loans, both Westinghouse and the partner must make an upfront commitment of $500 million each in project equity ($1 billion total per project).

At this stage, Westinghouse has signed letters of intent with seven potential partners, each with identified project sites.

Dan Sumner, President and Chief Executive Officer of Westinghouse, commented on the announcement and the country’s increasing need for baseload power to meet increasing demand.

“If we want to lead in artificial intelligence, advanced manufacturing, and the industries that will define the next century, we need more American baseload energy. This means building industrialized nuclear power at fleet scale.”