Particle.news
Download on the App Store

U.S., Westinghouse Owners Strike $80 Billion Deal to Build Reactor Fleet

Under a binding term sheet, Washington takes on financing/permitting duties in exchange for profit-sharing rights with a path to equity.

Overview

  • The agreement with Westinghouse, Brookfield and Cameco targets deployment of AP1000 reactors at multiple sites with projects totaling at least $80 billion.
  • The federal government will arrange financing and facilitate permits and is assigned the final investment decisions, with loan guarantees reported as under consideration.
  • Upon a final investment decision, the U.S. secures 20% of cash distributions above $17.5 billion and could require an IPO by 2029 if Westinghouse exceeds a $30 billion valuation, with an option to convert into up to a 20% equity stake.
  • A parallel U.S.–Japan framework commits up to $332 billion for U.S. energy infrastructure including AP1000 and SMR projects, with Japanese suppliers potentially contributing components for up to $100 billion of reactors.
  • Execution risks persist given Vogtle’s years-long delays, cost overruns and the absence of a permanent waste repository, even as AI-driven data centers fuel demand and tech firms back restarts such as Google’s Duane Arnold and Microsoft’s Three Mile Island.