US offers $17.5 billion in loans to boost nuclear reactor construction

The United States is making a significant push to revitalize its nuclear energy sector, with the Department of Energy announcing $17.5 billion in conditional loans to strengthen the commercial nuclear supply chain.

These loans are earmarked for utility and energy companies to procure essential components, aiming to accelerate the construction of 10 new large nuclear reactors by 2030. U.S. Energy Secretary Chris Wright indicated that this initiative could potentially bring the timeline forward by three years.

The nuclear industry has historically struggled to attract investment due to its capital-intensive nature, susceptibility to cost overruns, and complex regulatory environments. These factors have made nuclear projects riskier compared to cheaper and faster-to-build alternatives like natural gas and renewables.

“

These loans will help the United States achieve its goal of having 10 new large nuclear reactors begin construction by 2030, and possibly bring the timeline forward by three years.

The funding will support the acquisition of critical parts such as reactor pressure vessels and steam generators, which often have multi-year lead times. This is expected to shorten the construction period for large AP1000 nuclear power plants. Secretary Wright noted strong interest from hyperscalers and energy companies, driven by the rapidly increasing U.S. electricity demand fueled by the expansion of data centers for AI capabilities.

The loan program will back Westinghouse Electric reactors, with the Department of Energy's Office of Energy Dominance Financing supporting up to five loans. Each loan would facilitate the construction of two 1.1 GW Westinghouse reactors at a single site. Westinghouse will partner with up to five utility and energy companies nationwide, which will commit to fixed-price contracts for reactors and other long-lead-time supply chain needs. Both Westinghouse and the partner utility or energy company would need to invest $500 million each before accessing Department of Energy funds.

“

We are confident that these projects are economically beneficial for utility shareholders, electricity ratepayers, and hyperscalers alike.