The US government is partnering with asset manager Brookfield Asset Management Ltd. and two nuclear industry firms to build "at least" $80 billion in new nuclear reactors across the country, funded through trade agreements with Japan.
"This historic partnership with America's leading nuclear company will help unleash President [Donald] Trump's grand vision to fully energize America and win the global AI race. President Trump promised a renaissance of nuclear power, and now he is delivering," US Energy Secretary Chris Wright said in an Oct. 28 statement.
Brookfield initially acquired Westinghouse Electric Co. LLC, the developer of the AP1000 nuclear reactor technology, after that company's 2018 bankruptcy. Through a strategic partnership, uranium miner Cameco Corp. acquired a 49% share in Westinghouse in a deal that closed in 2023. Cameco has headquarters in Saskatchewan.
Japanese trade agreement
Trump announced a trade agreement with Japan on Oct. 28 that includes major projects "advancing Japan's previous $550 billion investment commitment to the United States."
Trump and Japanese Prime Minister Sanae Takaichi conducted a signing ceremony for the US-Japan Framework Agreement, which includes commitments by several Japanese companies to pursue up to $332 billion in investment to support US energy infrastructure, such as the construction of Westinghouse AP1000 reactors and small modular nuclear reactors.
The nuclear development agreement also includes other advanced nuclear developers like GE Vernova Inc. and ENTRA1 Energy LLC, as well as consideration of involvement by Japanese suppliers and operators such as Mitsubishi Heavy Industries Ltd., Toshiba Corp. and IHI Corp.
Partnership structure
The agreement between the US, Brookfield and Cameco provides for the US government to arrange financing and facilitate permitting and approvals for the new Westinghouse reactors with an aggregate investment of at least $80 billion, including near-term financing of long-lead time items.
Upon closing the transaction and with financing facilitated by the US government, Westinghouse plans to begin orders for long-lead equipment.
Under the partnership, the US government will be granted a participation interest, which, once vested, entitles it to 20% of any cash distributions in excess of $17.5 billion made by Westinghouse after the granting of the participation interest.
For the participation interest to vest, the US government must make a final investment decision and enter into agreements to construct the reactors. If the participation interest has vested by January 2029, and if the valuation of an initial public offering of Westinghouse is expected to be $30 billion or more at that time, the US government will be entitled to require an IPO, according to the companies.
Before, or in connection with the IPO, the participation interest will directly or indirectly convert into a warrant, with a five-year term, to purchase equity securities equivalent to 20% of the public value of the IPO entity, after deducting $17.5 billion from the public value.
"This partnership with the US government will help unlock the potential that Westinghouse and nuclear energy can play to accelerate the growth of artificial intelligence in the United States, while meeting growing electricity demand and energy security needs at scale," Brookfield President Connor Teskey said.
Brookfield has more than $500 billion invested in infrastructure in the US and expects to double that investment in the next decade to build the "infrastructure backbone of artificial intelligence," Teskey said.
"This partnership marks the launch of the next generation of America's nuclear industry," Todd Abrajano, the US Nuclear Industry Council president and CEO, said in a statement to Platts, part of S&P Global Commodity Insights. "The projects born of this partnership will demonstrate that advanced nuclear technology can be delivered on time and on budget — strengthening US leadership in clean energy exports and ensuring America is prepared to meet rising energy demand. As AI transforms the global economy, the rapid deployment of dependable nuclear power will be essential."
A national deployment of Westinghouse reactor projects could create more than 100,000 construction jobs, the companies said.
"The strategic partnership with the US government is a new model for our industry and will create opportunities not only for Westinghouse, Cameco and Brookfield but the entire nuclear supply chain," Maria Korsnick, president and CEO of the Nuclear Energy Institute, said in a statement to Platts. "Federal support will accelerate the deployment of next-generation nuclear at home and abroad. This kind of vision will allow us to meet demand and facilitate a new era of nuclear technology."
Westinghouse
Westinghouse was the construction contractor for Southern Co.'s two-unit expansion of its Vogtle nuclear plant in Georgia. Those units came online in 2023 and 2024, but took nearly two decades to complete.
The Vogtle expansion is estimated to have cost more than double initial projections of about $14 billion. Total cost estimates for the Vogtle additions are difficult to determine, given variables such as financing costs across the multiple owners and $3.7 billion provided due to the Westinghouse bankruptcy. Some estimates top $30 billion, and testimony at Georgia Public Service Commission hearings included estimates of $32 billion to $35 billion and more.
Westinghouse was also the builder for the failed two-unit expansion of the V.C. Summer nuclear plant in South Carolina, which was abandoned in 2017 after about $9 billion had been spent. The project was reeling from billions of dollars in cost overruns months after Westinghouse's bankrupcty.
The South Carolina Public Service Authority, also known as Santee Cooper, earlier in October took initial steps to select Brookfield to purchase and complete those two unfinished units.
The Vogtle units and unfinished Summer reactors are all AP1000s, and Westinghouse said there are six reactors of that design operating worldwide, with 14 additional reactors under construction and five more under contract. The design has been selected for nuclear programs in Poland, Ukraine and Bulgaria, according to Westinghouse.
Steven Dolley, a reporter for Platts, part of S&P Global Commodity Insights, contributed to this article.
