The U.S. Department of Energy (DOE) has issued a conditional loan commitment totaling up to $17.5 billion to support the purchase of long-lead-time components for new nuclear power projects and help rebuild the domestic commercial nuclear supply chain.

The financing, announced through DOE’s Office of Energy Dominance Financing (EDF), is intended to support up to five projects sponsored by utilities and energy companies. The projects would involve the deployment of 10 large-scale commercial nuclear reactors across the United States and could accelerate reactor construction timelines by as much as three years, according to DOE.

The initiative aligns with the administration’s goal of having 10 new large nuclear reactors with complete designs under construction by 2030.

According to DOE, the financing would support up to five loans, with each loan covering two reactors at a project site. The projects would use Westinghouse AP1000 reactors, which DOE said are currently the only licensed large-scale advanced commercial reactors operating in the United States.

Long-lead items are major nuclear plant components that require extended manufacturing and delivery schedules. Under the proposed arrangement, Westinghouse would partner with up to five utilities or energy companies to procure these components at a fixed price. Each project would be jointly owned by Westinghouse and its project partner.

DOE said both Westinghouse and each utility or energy company partner would be required to commit $500 million in project equity, for a total of $1 billion per project, before accessing federal loan funds. Procurement activities would be staggered based on the timing of equity commitments and other project factors.

Westinghouse has signed letters of intent with seven potential project partners and identified sites for potential development, according to DOE.

Each AP1000 reactor would have a generating capacity of approximately 1.1 GW. DOE said the combined output from 10 reactors could provide enough electricity to serve nearly 10 million U.S. households.

The department said the bulk purchasing structure is designed to reduce costs for nuclear components, improve supply chain efficiency and shorten deployment timelines. DOE also said the financing is intended to support the re-establishment of domestic manufacturing capabilities needed for large-scale nuclear construction.

The loan commitment remains conditional. DOE noted that the projects must satisfy technical, legal, environmental and financial requirements before definitive financing agreements can be executed and funds can be disbursed.