The Department of Energy’s Office of Energy Dominance Financing has issued a conditional loan commitment program of $17.5 billion to finance the purchase of long-lead time components for nuclear reactors.
DOE said in a Tuesday press release that the nuclear supply chain loans will finance five eligible projects sponsored by utilities and companies across the country to accelerate the deployment of 10-large reactors by up to three years.
In a Tuesday morning media call attended by Exchange Monitor, Energy Secretary Chris Wright, Energy Dominance Financing Director Greg Beard and Energy Dominance Financing Acting Chief Investment Officer Julie Kozeracki told reporters that seven companies, including hyperscalers, have expressed interest in the loan program.
Beard said DOE and the companies selected must satisfy several conditions, such as financial and environmental, before the agency enters into a definitive financing document and funds the loan. He expects the five loan partners, or special purpose vehicles as he referred to it, to be selected by the end of this year.
DOE’s Office of Energy Dominance Financing will support up to five loans, with each loan supporting two reactors at a project site. Kozeracki told reporters most of the sites selected for the new reactors would be built at existing plants or sites where there was previous Nuclear Regulatory Commission activity at.
The large reactors that would be built will be Westinghouse’s AP1000 reactors, since they are the only NRC licensed large-scale advanced reactors in the United States, DOE said. Westinghouse will partner up with the five eligible projects to procure the long-lead items at a fixed price. The company will also jointly own each project with the utility or energy company.
“Both Westinghouse and the partner are required to fully commit their project equity, $500 million each ($1 billion total per project), upfront prior to accessing DOE loan funds,” according to the release.
The nuclear supply chain loans build on the Donald Trump White House’s goal of having at least 10 large reactors under construction by 2030, listed in Executive Order 14302.
