This week’s announcement of a Joint Declaration on the Completion of Negotiations on Civil Nuclear Cooperation between the U.S. and the Kingdom of Saudi Arabia marks a significant milestone in advancing U.S. global leadership in nuclear technologies and exports. The declaration paves the way for the U.S. and Saudi Arabia signing a 123 Agreement, allowing for the export of U.S. nuclear material, equipment, and technologies to Saudi Arabia—a major potential market for nuclear exports.
This builds on recent successes in expanding opportunities for U.S. nuclear firms in overseas markets:
- Over the past year, the U.S. government has advanced formal civil nuclear cooperation with Singapore and Thailand through 123 Agreements.
- In April, Westinghouse and Bechtel signed an agreement to build Poland’s first AP1000 nuclear power plant.
- In May, GE Vernova-Hitachi received approval to deploy a small modular reactor in Canada.
- In September, X-energy announced the completion of a feasibility study for an SMR deployment, also in Canada.
- In September, TerraPower and KBR announced expanded efforts to deploy fast reactors to the U.K.
Saudi Arabia does not yet have a civil nuclear fleet, but it has ambitious plans to build substantial nuclear energy capacity as it looks to diversify its power mix and decarbonize its economy. The Kingdom is currently accepting bids for two 1.4 GW pressurized water reactors (PWRs) in Duwaiheen and is exploring the use of SMRs to support industrial output, desalination, data centers, and other applications.
Signing a 123 Agreement is a necessary first step in positioning U.S. firms to be internationally competitive in the global nuclear market where they often compete against foreign state-owned enterprises or foreign firms with substantial diplomatic or financial support from their home governments. For example, the four existing bidders for the Duwaiheen nuclear power plant contract are state-owned enterprises from China, Russia, France, and South Korea.
As U.S. firms look to expand operations to Saudi Arabia and other overseas markets, policymakers must decisively deploy a suite of federal tools to level the playing field with state-supported competitors and ensure fair opportunities for U.S. firms. Trillions of dollars and massive geopolitical implications are at stake in the race to lead in advanced energy technologies.