The first foreign reactors in the USA. Six AP1000s and two APR1400s.

The U.S. Department of Commerce announced an indicative framework agreement worth $120 billion between the United States and South Korea, which envisions the construction of six Westinghouse AP1000 nuclear reactors and two South Korean APR1400 reactors on U.S. soil

This extensive undertaking is part of a broader initiative called "Project Power," whose goal is to launch the construction of a total of 10 large nuclear reactors in the United States by 2030. The exact locations for the new reactors are not yet defined, but the basic financing structure has been defined, under which $100 billion is allocated for direct construction costs, while $20 billion is earmarked for reserves for unforeseen costs.

To speed up the work, both countries have agreed to finalize a $10 billion loan by the end of the year, which will primarily be directed at urgent procurement of equipment with long lead times. The agreement also provides that South Korean companies will obtain a significantly minority ownership stake in Westinghouse, while the details of this transaction will be determined subsequently.

First foreign reactors on U.S. soil?

Cameco, which holds a 49% ownership stake in Westinghouse, has confirmed that the plan is to build the new reactors at locations under federal ownership, starting with the first two AP1000 reactors. Cameco notes that the entry of Korean firms into the ownership structure will not jeopardize their stake, and that this agreement includes a one-time deviation from the previous alignment on intellectual property. This enables entry for potentially two South Korean APR1400 reactors into the U.S. market – which would be, as far as we have been able to follow, the first foreign reactors on U.S. soil – while Westinghouse, through licensing, engineering services and fuel delivery, will realize about two billion dollars of value per reactor.

Cameco's Chief Executive Officer, Tim Gicel, said that the new orders represent an excellent opportunity to accelerate AP1000 fleet construction worldwide and support the U.S. goal to quadruple its civilian nuclear capacity by 2050.

And from Korea Electric Power Corporation (KEPCO) they say that this agreement represents a new milestone in the energy cooperation between the two countries. According to them, the entry of APR1400 reactors into the American market will demonstrate the technological strength of South Korea's nuclear industry and open doors for domestic companies to broader participation in global supply chains.

From Westinghouse Nuclear they add that the agreement represents a key moment for American nuclear energy and the long-standing partnership between the two countries, thereby directly strengthening energy security and grid reliability.

Comment

There are certainly a few things to take from here: this is part of a project that President Trump announced even before taking office — the United States will invest in nuclear energy “like never before.” But there is a problem: the loss of engineering know-how, “know-how,” and industrial capacities after a huge downturn that effectively lasted about 40 years is so great that the United States is doing something for the first time in its history — allowing a foreign company — and, practically, the state — to build its nuclear reactors on U.S. soil.  

S.A.