The DOE has drafted a federal loan guarantee opportunity that, if it goes into effect, could help provide $12.6 billion for nuclear power projects.
As part of the Obama administration's efforts to reduce carbon emissions, the DOE aims to provide more financing support for nuclear projects that might otherwise face challenges raising capital in private markets. In a release Monday, the DOE said the program would be available for advanced reactors, small modular reactors, uprates and plant upgrades. Additionally, the program would set aside $2 billion for fuel cycle projects, including those providing fuel fabrication and uranium enrichment and conversion.
In the draft solicitation (.pdf), the DOE requires that projects employ technologies that are new or significantly improve existing commercial offerings in the nuclear power sector. It also will favor projects with the potential to have a "catalytic effect" on the commercial deployment of those technologies. The DOE's authority to issue the guarantees dates to an appropriations bill in 2009 and an energy bill passed in 2005.