The news on IHT reported a statement by the US Energy Department on September 4, 2007 that it is going to guarantee loans of as much as 80% of the total construction cost of the new nuclear reactors indicating a further step in the newly started US nuclear revival.

The announcement followed the offer made by the Energy Department for applications of loan guarantees for 16 US projects not using the nuclear technology.

IHT news reported the statement by Energy Secretary Samuel Bodman, who will be asking for major concessions in the 2009 federal budget for loan guarantees to provide adequate support to seven to eight nuclear plants.

Nuclear power industry was vital for previous proposals for a loan guarantee program that were passed as part of 2005 energy bill, stating the loan guarantees weren’t adequate and would halt the development of new reactors. The old plan allowed the Energy Department to avail guaranteed loans for approximately two-thirds of the total construction costs of the new nuclear reactors and the other projects.

The US energy industry cannot do without nuclear power, as it is the only mature and emission-free means of power supply for the estimated additional electricity requirement in America for the next 25 years. Nuclear energy also plays a crucial role in any credible program to curb the greenhouse emissions apart from ensuring forward price stability in an uncertain energy marketplace. The benefits that result are passed on to consumers and the economy of the country.

As a part of the loan plans of the US government, a partial application by constellation Energy Group Inc. has been submitted to the Nuclear Regulatory Commission. The latter also anticipates as much as six more requests in 2007 from Duke Energy Corp., Dominion Resources Inc., and others.

A research analyst at RNCOS said, “The US energy sector is very wide and the world’s most advanced energy sector, contributing to a major chunk of its country’s income. The complaint from several nuclear energy providers was that the industry should use the new loan plans to boost the industry. The energy vendors in the USA will not be the only beneficiaries of the new upcoming loan plan, but the US economy will benefit from it too”