US contractors spur nuclear construction

Nuclear contractors and vendors, hoping to jump-start construction of the first new US nuclear plants in 30 years, are offering financial support and pledging to assume a larger share of the completion risks.

Public concern over the safety of nuclear power has effectively shut down new plant construction for decades. But the US government has been offering incentives to spur development. And now groups that supply equipment to the industry are also moving to offset some of the enormous costs of new construction.

The US government has offered $18.5bn in loan guarantees to encourage the construction of 14 nuclear power plants. Last month, it said it had received 19 applications from 17 electric power companies for $122bn in loan guarantees.

“The aggregate estimated construction cost of these 14 projects is $188bn,” Standard & Poor’s said in a recent report.

By Sheila McNulty in Houston

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