(Oil Price) – The Trump Administration plans to offer U.S. states incentives for building nuclear reactors in exchange for agreeing to store nuclear waste, a source familiar with the matter told Reuters on Thursday.
However, a spokesperson for the U.S. Energy Department told Reuters that the story was “false” and that “no decisions have been made at this time,” after POLITICO first reported on the plan late on Wednesday.
The POLITICO report said that the Energy Department could invite interest from U.S. states as early as this week.
Handling nuclear waste is a politically and environmentally sensitive issue, and the U.S. may have much more of that in the coming years as it the Trump Administration plans to facilitate the expansion of U.S. nuclear energy capacity from about 100 gigawatts (GW) in 2024 to 400 GW by 2050.
The U.S. Administration has bet big on nuclear power, alongside gas, to meet the expected surge in America’s electricity demand driven by AI, data centers, and the onshoring of manufacturing.
New nuclear plants could be ready to provide baseload capacity from 2030 or even 2035 onwards, due to long lead times to permit and construction, according to Goldman Sachs.
The Administration is laying the foundations for a nuclear renaissance.
Earlier this month, the Energy Department announced a $2.7 billion investment to strengthen domestic enrichment, in support of President Trump’s commitment to expand U.S. capacity for low-enriched uranium (LEU) and jumpstart new supply chains and innovations for high-assay low-enriched uranium.
Last month, the Energy Department awarded $800 million to TVA and Holtec to advance the deployment of U.S. small modular reactors.
In November, DOE extended a $1-billion loan to help Constellation Energy restart the Three Mile Island Unit 1 nuclear reactor to add baseload power to the grid and help the AI advancement in the United States.
By Charles Kennedy for Oilprice.com
