DOE Issues Conditional $17.5 Billion Loan Commitment to Support Up to 10 Westinghouse AP1000 Reactors

The U.S. Department of Energy has issued a conditional commitment for up to $17.5 billion in loans to support purchases of long-lead equipment for as many as 10 new Westinghouse AP1000 nuclear reactors in the United States, a major federal financing move aimed at speeding reactor development.

The commitment, announced June 23 by the DOE’s Office of Energy Dominance Financing, is not a final loan closing and does not directly fund full plant construction. Instead, it is designed to help developers buy major components that take years to manufacture — including reactor pressure vessels, steam generators and other heavy forgings — before final construction financing is in place. That makes it one of the largest federal financing pushes for large U.S. nuclear reactors in decades, while still leaving significant hurdles before any project moves ahead.

DOE and Westinghouse describe the effort as an American Nuclear Supply Chain Loans program meant to let developers place large orders earlier and at greater scale. The structure is expected to include up to five loans, each tied to a two-reactor project, for a potential pipeline of 10 reactors. Westinghouse has signed letters of intent with seven potential utility or energy partners, but DOE officials did not identify the companies or project sites when announcing the commitment. Reuters and company filings said each two-reactor project vehicle is expected to need about $1 billion in upfront equity — roughly $500 million from a Westinghouse special purpose vehicle and $500 million from the utility partner — before DOE funds become available.

The commitment is explicitly conditional. DOE, Westinghouse, its owners and project partners must still satisfy technical, legal, environmental and financial requirements before definitive financing documents are signed and any money is disbursed. Westinghouse is owned by Brookfield and partners, with a 51% stake, and Cameco, which holds 49%.

The AP1000 is Westinghouse’s large pressurized-water reactor design, capable of producing about 1,100 megawatts per unit. The emphasis on long-lead procurement reflects lessons from Plant Vogtle Units 3 and 4 in Georgia, the most recent large U.S. reactor builds. Those units entered commercial operation in 2023 and 2024 after years of delays and multibillion-dollar cost overruns. DOE and the companies are arguing that pooled early orders for major components could help control costs and schedules on future projects.

DOE and industry materials say the goal is to reduce supply-chain bottlenecks and make it possible to have up to 10 reactors under construction by 2030, with any operating dates likely in the mid-2030s if projects proceed. The push is also tied to rising electricity demand, including from data centers and artificial intelligence-related power use. The Associated Press and Reuters reported that officials said there was strong interest from hyperscale customers, though no specific commitments were publicly identified.

Nuclear power supplied about 18% of U.S. electricity generation in 2024, according to the U.S. Energy Information Administration, making it a significant part of the country’s power mix even as new large-reactor development has moved slowly for years.

“This is the start,” U.S. Energy Secretary Chris Wright said in a June 23 call with reporters. Whether the financing translates into reactor projects will depend on meeting DOE’s closing conditions, securing licenses and permits, and locking in partner financing and project execution.