The Trump administration said it loaned Constellation Energy Corp US$1 billion (A$1.54 billion) to restart the Crane Clean Energy Centre nuclear plant in Pennsylvania.
The plant, previously known as Three Mile Island Unit 1, is expected to start generating power again by 2027.
Three Mile Island Unit 1 closed in 2019 as nuclear struggled to compete against cheap natural gas and later restarted under the name Constellation in 2024 through a power purchase agreement with Microsoft.
The loan is likely to cover most of the project’s estimated cost of US$1.6 billion.
The first advance is expected in the first quarter of 2026, according to Greg Beard, senior advisor to the Energy Department’s Loan Programs Office.
“This type of energy is important because it’s large, stable, affordable base load power,” Beard told reporters.
Constellation said the loan will help lower the cost of financing and leverage private investment to restore power to the grid.
The loan comes as U.S. power demand is rising for the first time in two decades, on technology like artificial intelligence.
Nuclear power is becoming a viable option for companies with uninterrupted power needs and climate pledges. However, critics argue that the U.S. has failed to find permanent storage for radioactive waste.
Beard said Constellation agreed to the loan now because while the company could complete the project without help, the loan would make electricity cheaper for consumers on the grid operated by PJM Interconnection, which serves more than 65 million people across 13 states.
“What’s important for the administration is to show support for affordable, reliable, secure energy in the U.S.,” Beard said.
“This loan to Constellation will lower the cost of capital and make power cheaper for those PJM ratepayers.”
