Copyright reuters
SummaryCompaniesDeal involves Westinghouse Electric, Cameco and Brookfield Asset ManagementUS President Donald Trump pushes 'energy dominance' agendaGovernment will arrange financing and help gain permits Oct 28 (Reuters) - At least $80 billion of nuclear reactors will be built across the United States in a partnership with the U.S. government, the three companies involved in the project said on Tuesday. The plan represents one of the most ambitious U.S. investments in atomic energy in decades, underscoring President Donald Trump's agenda to maximize energy output, focused on oil, gas, coal and nuclear. It also comes as growth in artificial intelligence data centers boosts U.S. power demand for the first time in two decades, straining parts of the grid. Advertisement · Scroll to continue Under the agreement with Westinghouse Electric, Cameco (CCO.TO), opens new tab and Brookfield Asset Management (BAM.TO), opens new tab, the U.S. government will arrange financing, and will help secure permits for the plants using Westinghouse reactors. In return, the U.S. government would be granted a participation interest that, once vested, will allow it to get 20% of any cash distributions in excess of $17.5 billion made by Westinghouse, the companies said. The companies did not say when the U.S. government interest would vest, but added that the government must make a final investment decision and enter agreements to complete construction of the plants. Advertisement · Scroll to continue U.S.-listed shares of Cameco were up more than 21% in midday trading. TOUGH CHALLENGE Building new U.S. nuclear reactors has been difficult due to soaring costs as well as public concern about potential accidents and nuclear waste. The last two U.S. reactors built at the Vogtle site in Georgia in 2023 and 2024 were about seven years behind schedule and cost about $35 billion, more than double an original estimate of $14 billion. No large reactors are currently under construction. The Trump administration in May ordered the U.S. Nuclear Regulatory Commission to slash regulations and fast-track new licenses for reactors, seeking to shrink a multi-year process down to 18 months. The order called for 10 new large reactors under construction by 2030. The administration also reviewed staffing levels at the independent agency, which led some critics to question whether permits would be rushed at a risk to safety. The NRC said it would respond to a request for comment about the deal once it has returned to full operations after the government shutdown. The Department of Energy did not immediately respond to a request for comment. Critics also point to the fact that there is no permanent U.S. repository for radioactive waste, which remains dangerous for thousands of years. It is currently kept on site at nuclear plants in cooling pools and then moved into hard casks. Still, momentum around nuclear is being driven by surging round-the-clock power demand from the so-called hyperscalers that operate massive cloud-computing infrastructure to manage rising artificial-intelligence processing. On Monday, NextEra Energy (NEE.N), opens new tab and Google (GOOGL.O), opens new tab struck a deal to restart an idle nuclear plant in Iowa. As part of the new partnership, the government may also require Westinghouse to make a public offering of its shares, if a participation interest vests and the company reaches a valuation of $30 billion or more by January 2029, the companies said. ADVANCED TECHNOLOGY Cameco and Brookfield Renewable Partners (BEP.N), opens new tab completed the $7.9 billion acquisition of Westinghouse in 2023, including debt. Brookfield Business Partners had previously acquired the company from Toshiba Corp out of bankruptcy in 2018 for $4.6 billion. The new reactors would feature Westinghouse's advanced nuclear technology. Tech giants including Google, Microsoft (MSFT.O), opens new tab, and Amazon (AMZN.O), opens new tab have already inked deals to source power from next-generation nuclear technologies, such as fusion and small modular reactors. Constellation Energy (CEG.O), opens new tab and Microsoft have partnered to revive a unit of the Three Mile Island plant in Pennsylvania to power Microsoft's data centers. Reporting by Katha Kalia in Bengaluru and Timothy Gardner in Washington; Editing by David Holmes and Bill Berkrot Purchase Licensing Rights Timothy GardnerThomson ReutersTimothy reports on energy and environment policy and is based in Washington, D.C. His coverage ranges from the latest in nuclear power, to environment regulations, to U.S. sanctions and geopolitics. He has been a member of three teams in the past two years that have won Reuters best journalism of the year awards. As a cyclist he is happiest outside.EmailXLinkedin
