- Global Collaboration for Clean Energy: Explore the collaborative efforts of the Sapporo 5 alliance, including the USA, Canada, Japan, France, and the UK, as they join forces to support the deployment of Small Modular Reactors (SMRs) and expand nuclear fuel production capacity.
- Financial Tools Driving Innovation: Delve into the Export-Import Bank of the United States (EXIM)’s groundbreaking financial tools, offering extensive support for SMR projects worldwide, from loan guarantees and direct loans to facilitating international partnerships and ensuring compliance with regulatory standards.
- COP28 Ambitions and Industry Response: Examine the joint commitment made at COP28 by governments, including the Sapporo 5, to triple nuclear energy capacity by 2050. Witness the encouraging response from industry representatives as they emphasize the crucial role of government action and private sector investment in achieving global energy goals.
The Export-Import Bank of the United States (EXIM) has introduced financial tools to bolster the deployment of Small Modular Reactors (SMRs) on a global scale. The primary objective is to enhance the competitiveness of U.S. exporters in the dynamic international market. These tools encompass a range of supportive measures, including the provision of loan guarantees or direct loans spanning up to 22 years post-construction. Additionally, EXIM aims to assist borrowers in managing exposure fees and interest payments during the construction phase. Notably, the bank is poised to facilitate pre-export disbursement of loans during the equipment fabrication stage. In a collaborative effort, EXIM is open to working with other Export Credit Agencies to jointly finance the diverse components of specific SMR designs.
However, this financial support is contingent on host governments of SMR projects entering into agreements with the USA and adhering to pertinent civil nuclear liability conventions. Furthermore, EXIM stipulates the necessity of design approval by the U.S. Nuclear Regulatory Commission or an equivalent foreign regulatory authority deemed acceptable by EXIM.
Reta Jo Lewis, Chair of EXIM, underscored the significance of nuclear energy in addressing decarbonization and the escalating demand for electricity. The commitment of EXIM’s Board of Directors to fund creditworthy applications for U.S. SMR exports is seen as a pivotal step in advancing the global energy transition.
Simultaneously, the international stage witnessed the formation of the Sapporo 5 alliance, comprising the USA, Canada, Japan, France, and the UK. This coalition expresses collective intent to support the expanded deployment of zero-carbon, peaceful nuclear energy. The alliance’s focus extends to augmenting nuclear fuel production capacity across reliable, high-quality suppliers, free from external manipulation and influence. Over the next three years, the Sapporo 5 endeavors to mobilize at least USD 4.2 billion in combined government-led and private investment for enrichment and conversion capacity. This initiative was launched in April, with the collaborative goal of ensuring a stable supply of fuels for both existing and future nuclear generation fleets.
Industry representatives from the signatory countries expressed encouragement for this multilateral approach to advance a secure nuclear fuel supply chain. In a joint statement, they highlighted the significance of government action and private sector investment in achieving the goals set forth during COP28. The ambition outlined at COP28 involved nearly 20 governments, including the Sapporo 5, committing to tripling nuclear energy capacity by 2050. Recognizing the global surge in demand for clean nuclear energy, these efforts are seen as integral to advancing decarbonization, ensuring energy independence, and fortifying collective national security.
