Nuclear deal with U.S. allows Paraguay to explore small reactors

Paraguay is poised to explore the incorporation of small nuclear reactors into its energy system following a civil nuclear cooperation agreement signed with the United States. The current energy infrastructure in Paraguay relies heavily on hydroelectric power.

Robert Alter, the U.S. Chargé d'Affaires in Asunción, explained that the agreement includes sharing best practices, technological information, and details on safety, security, and non-proliferation. This framework aims to enable Paraguay to evaluate the feasibility of using small reactors and integrating them into its national grid to ensure future electricity supply.

The memorandum of understanding on strategic cooperation in civil nuclear matters was signed in Washington by U.S. Secretary of State Marco Rubio and Paraguayan Foreign Minister Rubén Ramírez. Alter emphasized that the U.S. intends to support Paraguay in making "informed decisions" about the potential use of "civil, peaceful, nuclear energy as part of its future energy mix."

This initiative follows a non-binding cooperation agreement signed in April between Paraguay's National Electricity Administration (ANDE) and the International Atomic Energy Agency (IAEA) regarding the application of Small Modular Reactor (SMR) technology for potential long-term use. Additionally, Paraguay and the U.S. signed a separate memorandum in February concerning cooperation on critical minerals.

Paraguay possesses substantial uranium deposits, along with other minerals like titanium and lithium. U.S. company Uranium Energy Corp has already invested approximately one million dollars in titanium exploration in Paraguay and is interested in future uranium-related projects. The U.S. has also proposed forming a trade bloc with allies, including Paraguay, to strengthen critical mineral supply chains and reduce China's dominance in the sector.