CashNews.co
On 7 October 2024, the All-Party Parliamentary Group (APPG) on Nuclear Energy held a roundtable discussion focused on UK and US export finance for the nuclear sector.
US Export-Import Bank (EXIM) President and Chair Reta Jo Lewis and UK Export Finance (UKEF) Chief Executive Tim Reid joined US Embassy officials and APPG members to discuss the importance of securing and maintaining export finance for nuclear projects.
Josh MacAlister MP, Co-Chair of the APPG on Nuclear Energy, chaired the roundtable and opened by emphasising the significance of nuclear energy, particularly Small Modular Reactors (SMRs), as contributors to energy security and sustainability. He highlighted that the ongoing SMR competition, run by Great British Nuclear, has narrowed down to UK and US companies Rolls-Royce, Holtec, Hitachi, and Westinghouse, noting the potential for collaboration between the two nations on nuclear finance.
Throughout the roundtable, there was a consensus around supporting and financing the nuclear industry on the international stage. Both EXIM and UKEF pledged continued support for the industry, and participants looked forward to further discussions at the COP conference in Baku, where nuclear finance will be a key topic.
Reta Jo Lewis commented on how COP 28 unexpectedly placed nuclear high on the agenda, indicating an increased consensus that nuclear is essential for achieving net zero. She also stressed the importance of global partnerships, highlighting EXIM’s efforts in supporting nuclear projects from India to Romania and the bank’s commitment to working with international partners. Tim Reid spoke about UKEF’s mission to support UK exports and how UKEF ensures that UK exporters are well-positioned to take advantage of opportunities.
A major topic of the roundtable was the challenge of financing large-scale nuclear projects. Roger Cohen, Assistant General Counsel for Structured & Project Finance at EXIM, outlined the importance of structured financing, including sovereign credit and direct loans, to overcome these hurdles.
Both Cohen and UKEF’s Tim Reid acknowledged the need for regulatory reform and faster governmental action on tenders while also stressing the importance of international collaboration. EXIM’s involvement in projects in Romania, Poland, and India, along with partnerships with Japan and Korea, was cited as a model for successful global cooperation.
MPs attending the roundtable emphasised the necessity of developing a strong domestic nuclear supply chain, which is crucial for supporting future projects. They also underscored the economic benefits, including job creation and regeneration, particularly in areas affected by industrial decline. Jonathan Brash and Julie Minns expressed strong support for nuclear investment as a way to revitalise communities and urged the government to take a proactive stance in encouraging new projects.
This roundtable demonstrated the strength of UK-US collaboration in the nuclear sector and the shared determination to address financial and regulatory challenges. As the UK government continues to prioritise energy independence, the APPG’s work will play an essential role in shaping future policy. The Nuclear Industry Association’s outreach will ensure that the sector’s priorities are represented both nationally and internationally.
Thomas Ron is the NIA’s Public Affairs Executive