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Nuclear energy

Canadian Firms Partner with US Government to Build Nuclear Reactors

Strategic Insights

— 2 min read

Cameco Corp. and Brookfield Asset Management Ltd. have teamed up with the US government to aid in the construction of new nuclear reactors in the US. The partnership will see the US government arrange financing and facilitate permitting for at least $80 billion in new Westinghouse reactors. Brookfield and Cameco acquired Westinghouse in November 2023, and the partnership is expected to bolster confidence in nuclear power growth.

Key Takeaways:

  • The US government will arrange financing and facilitate permitting for at least $80 billion in new Westinghouse nuclear reactors in the US.
  • Brookfield and Cameco acquired Westinghouse in November 2023, and the partnership is expected to support increased demand for Westinghouse's and Cameco's products, services, and technologies.
  • The partnership agreement will see the US government receive a participation interest, which will entitle it to 20 per cent of any cash distributions in excess of $17.5 billion made by Westinghouse after the granting of the interest.
  • For the participation interest to vest, the US government must make a final investment decision and enter into definitive agreements to complete the construction of at least $80 billion in new Westinghouse nuclear reactors in the US.
  • The partnership agreement also includes the possibility of the US government converting its participation interest into a warrant to buy shares in an initial public offering by Westinghouse, equivalent to 20 per cent of the public value of the company at the time, after deducting $17.5 billion.
  • The partnership highlights the role of Westinghouse's reactor technologies in the planned expansion of nuclear capacity and diversification of global nuclear supply chains.
  • US Commerce Secretary Howard Lutnick emphasized the government's focus on ensuring the rapid development, deployment, and use of advanced nuclear technologies.

Statistics:

  • The partnership agreement involves a minimum project value of $80 billion (US) for the construction of new Westinghouse nuclear reactors in the US.
  • The US government will receive a participation interest of 20 per cent in Westinghouse, in addition to a warrant to buy shares in an initial public offering equivalent to 20 per cent of the public value of the company.
  • The participation interest will only vest if the US government makes a final investment decision and enters into definitive agreements to complete the construction of at least $80 billion in new Westinghouse nuclear reactors in the US.
  • Any cash distributions in excess of $17.5 billion made by Westinghouse after the granting of the participation interest will entitle the US government to 20 per cent.

Sources:

  • The Canadian Press
  • Cameco Corp.

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