Cameco Corp., a Saskatoon-based uranium producer, has welcomed the U.S. Department of Energy’s announcement of a conditional US$17.5-billion loan package aimed at accelerating the construction of new nuclear reactors across the United States.

The funding, managed through the department’s Office of Energy Dominance Financing, is designated for five projects, each comprising two large-scale reactors. These initiatives are sponsored by partnerships between Westinghouse Electric Co.—in which Cameco and Brookfield Asset Management hold ownership stakes—and various utilities and energy companies across the country. The goal of the loan package is to facilitate faster deployment of 10 advanced commercial reactors by financing critical components that typically have long manufacturing and delivery timelines.

Currently, the Westinghouse AP1000 reactors remain the only licensed large-scale advanced commercial reactors operating in the U.S. Each reactor is expected to produce approximately 1.1 gigawatts of power, with the combined output of all projects sufficient to supply nearly 10 million households, according to the Department of Energy.

Cameco’s Chief Executive Officer, Tim Gitzel, highlighted that while the announcement is a positive development, several technical, legal, environmental, and financial conditions must be satisfied before formal agreements are finalized and funds are disbursed.

“These conditional loans, together with recent executive orders from the White House and other government initiatives, create important incentives that are expected to accelerate the deployment of AP1000 reactors,” Gitzel said. He added that expanding nuclear power capacity in the U.S. should generate substantial growth opportunities for both Westinghouse and Cameco, particularly during the procurement and construction phases.

The loan program requires that each project be jointly owned by Westinghouse and a utility or energy company partner, with both entities committing US$500 million in project equity upfront to access the loan funds. The Department of Energy emphasized that this financial structure not only supports large-scale reactor construction but also aims to rejuvenate the supply chain for nuclear components and materials within the United States.

U.S. Energy Secretary Chris Wright described the loans as “an important step” in reviving domestic reactor manufacturing capabilities. He said these funds would expedite construction timetables by as much as three years, reduce overall costs, and help fulfill the energy expansion targets set forth under directives initiated in the previous administration, including President Donald Trump’s 2025 executive orders aimed at quadrupling nuclear power output over 25 years.

The conditional nature of the loan package reflects ongoing regulatory and environmental reviews, as well as financial vetting processes, before definitive financing arrangements can proceed. Nonetheless, the announcement marks a significant federal commitment to supporting the next generation of nuclear energy infrastructure in the United States.