U.S. Announces $17.5-B Loan Program for Advanced Nuclear Reactors

The US Department of Energy (DOE) announced Tuesday a major financing initiative intended to accelerate the deployment of advanced nuclear reactors across the country, according to a Yahoo Finance report.

The funding is intended to speed up procurement of critical long-lead equipment for 10 advanced nuclear reactors,

While the report initially referenced more than $15 billion in loans, the DOE announcement specifies a total commitment of $17.5 billion in financing support.

The funding is intended to speed up procurement of critical long-lead equipment for 10 advanced nuclear reactors, potentially reducing project timelines by as much as three years.

The financing program could support up to five separate loans, with each loan covering two reactors at project sites jointly owned by Westinghouse and partner utility or energy companies.

To qualify for DOE financing, Westinghouse and its project partners must collectively commit $1 billion in equity per project, including $500 million from each participating side.

According to the DOE, Westinghouse currently manufactures the AP1000 reactor, the only licensed large-scale advanced commercial nuclear reactor operating in the United States.

The announcement provided a modest boost to nuclear-related investments, with the VanEck Uranium and Nuclear ETF (NLR) posting gains following the news.