Wedoany.com Report-Nov. 9, The US Department of Commerce has signed a binding term sheet with Cameco Corporation (Canada) and Brookfield Asset Management to accelerate global deployment of Westinghouse Electric Company’s nuclear reactor technologies. The strategic partnership aims to strengthen supply chains and the nuclear power industrial base in the US and internationally, supporting the country’s plan to expand nuclear generation capacity over the next 25 years.

Cameco and Brookfield jointly own Westinghouse with a 49% and 51% interest, respectively.

Cameco and Brookfield, which jointly own Westinghouse with 49% and 51% stakes, respectively, stated that the initiative will launch a nuclear power plant (NPP) construction programme, driving growth in Westinghouse’s energy systems segment and its fuel fabrication and reactor services businesses. They noted: “Upon closing of the transaction and with financing facilitated by the US Government, Westinghouse plans to commence project execution and initiate orders for critical equipment with long lead times, leveraging the supply chains established during the construction of Vogtle NPP units 3&4.” No specific construction timeline has been disclosed.

Under the agreement, the US Government will receive a participation interest, entitling it to 20% of cash distributions exceeding $17.5bn from Westinghouse once vested. Vesting depends on the US Government making a final investment decision and entering definitive agreements to build new Westinghouse reactors valued at a minimum of $80bn. If the participation interest vests by January 2029 and Westinghouse’s initial public offering (IPO) is valued at $30bn or more, the government can require an IPO, converting the interest into a warrant to purchase equity representing 20% of the public value after deducting $17.5bn.

Connor Teskey, President of Brookfield Asset Management, said: “This partnership will help unlock the potential that Westinghouse and nuclear energy can play to accelerate the growth of AI in the United States, while meeting growing electricity demand and energy security needs at scale. Brookfield has more than half a trillion dollars invested in critical infrastructure in the US, and we expect to double that investment over the next decade.”

Cameco CEO Tim Gitzel added: “We expect this partnership to support global growth opportunities for both Westinghouse’s and Cameco’s nuclear products, services, and technologies. The US Government’s participation creates the right incentives to deploy its full suite of tools behind Westinghouse reactor construction, including financial, regulatory, policy, and diplomatic support.”

US Energy Secretary Chris Wright highlighted the significance: “This historic partnership with America’s leading nuclear company will help unleash the vision to fully energise the US and strengthen energy independence.”

Westinghouse has a long history in nuclear power, delivering the world’s first commercial pressurized water reactor in 1957. After bankruptcy in 2017, it was sold to Brookfield subsidiaries and Cameco, completing the acquisition in November 2023. Past AP1000 reactor projects in the US faced delays and cost overruns, while China successfully completed four AP1000 units. No AP1000 reactors are currently operational in Europe, but the technology has been selected for projects in Poland, Bulgaria, Ukraine, Slovakia, Sweden, the Czech Republic, and Slovenia, with Westinghouse contracting local companies for construction.

This partnership underscores the combined role of Westinghouse, Cameco, Brookfield, and the US Government in expanding nuclear energy deployment, reinforcing supply chains, and advancing energy infrastructure projects globally.