- U.K. building four large reactors, expresses interest in SMRs
- New reactors in Mexico could support more than 10,000 U.S. jobs
- NEI says new 123 agreements critical for U.S. exports and jobs
The White House transmitted new bilateral nuclear cooperation agreements, also known as Section 123 agreements, with the United Kingdom and Mexico to Congress this week. In short statements, NEI praised both agreements for the role that nuclear energy plays in helping to boost energy security and enabling U.S. exports.
NEI Vice President of Suppliers, New Reactors and International Programs Dan Lipman said the U.K. agreement would help reduce that country’s dependence on energy imports.
“We commend the Trump administration for submitting to Congress for review a 123 Agreement with the United Kingdom, which facilitates trade in nuclear technology between our countries,” Lipman said. “The U.K. government’s decision to invest in new nuclear power generation is based on a recognition that nuclear energy is a clean, reliable and emissions-free energy source that reduces the nation’s reliance on imported fossil fuels.”
Because the United Kingdom has announced significant plans to develop new nuclear plants in the years ahead, this Section 123 agreement is critical for U.S. nuclear exports and American jobs.
With the U.K.’s decision to exit the European Union and the European Atomic Energy Community, or Euratom, a bilateral agreement is required to continue cooperation and reaffirms America’s close partnership with the U.K. nuclear energy sector.
The U.K. has made clear its commitment to clean energy. The country, historically associated with coal power, recently made headlines by running its electricity grid without coal generation for three days—a feat not achieved since the 1880s. The United Kingdom also is investing heavily in new nuclear development, including large and small reactors.
“Because the United Kingdom has announced significant plans to develop new nuclear plants in the years ahead, including possibly small modular reactors, this Section 123 agreement is critical for U.S. nuclear exports and American jobs,” Lipman said. “The U.K. government’s ambitious development plans have made it the most important nuclear technology export market after China, according to a U.S. Department of Commerce report, making the Section 123 agreement welcome news for U.S. firms.”
According to the U.S. Energy Information Administration, the U.K. relies on a mix of mostly nuclear, renewables and natural gas to meet its electricity needs. The country gets 24 percent of its electricity from nuclear energy, 23 percent from renewables like wind and solar and 45 percent from natural gas. Coal’s contribution has dropped from 42 percent in 2012 to 7 percent in 2017.
Trump Administration Sends Nuclear Trade Agreement with Mexico to Congress for Review
The Trump administration also submitted a 123 agreement to facilitate commercial nuclear cooperation between the United States and Mexico to Congress for review this week.
NEI said the agreement will allow the U.S. to continue long-standing mutually beneficial trade with Mexico while positioning itself for further opportunities down the road.
“We applaud the Trump administration for submitting to Congress for review a 123 Agreement with Mexico, which facilitates trade in nuclear technology between our countries,” Lipman said. “Mexico is one of the United States’ largest trading partners and a longtime and significant importer of American nuclear technology.”
NEI led a successful U.S. Department of Commerce-certified trade mission to Mexico in 2017 to promote American nuclear technology. Because of a long-standing history of good relations and strong commercial nuclear cooperation and trade, a new 123 agreement means U.S. firms will be well positioned to win future nuclear contracts in Mexico.
The U.S.-Mexico Section 123 agreement will supersede a multilateral agreement with the International Atomic Energy Agency as the basis for U.S.-Mexico cooperation. The agreement will restore Mexico’s eligibility for general authorization under 10 CFR Part 810, which governs U.S. nuclear technology exports. Amendments to the Part 810 regulation in 2015 made a Section 123 agreement a prerequisite for general authorization, requiring U.S. nuclear suppliers to obtain time-consuming specific authorizations from the Secretary of Energy for many U.S. nuclear exports.
“Affirming our close collaboration with Mexico means our trade in nuclear energy goods and services will continue, supporting jobs and local economies across America,” Lipman said. “This agreement also positions U.S. nuclear companies to compete for significant new opportunities in Mexico, including possibly a multibillion-dollar reactor deal.”
Mexico has two approximately 800-megawatt General Electric boiling water reactors operating at its Laguna Verde site in Veracruz. Together, the reactors provide approximately 4 percent of the country’s electricity.
In 2015, Mexico’s Development Program of the National Electric System included plans to commission new reactors with a tentative schedule for them entering commercial operation by the mid-2020s. The Mexican government’s interest in nuclear stems from its desire to lower natural gas imports and reduce carbon emissions.
The U.S. nuclear industry estimates that the supply of two new reactors to Mexico would potentially generate more than $2 billion in U.S. exports and support more than 10,000 jobs in 20 states.
Congress has 90 days of continuous session to review both 123 nuclear trade agreements.