Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman on July 22 signed a decades-long, multi-billion-dollar civil nuclear cooperation agreement, the most significant U.S.-Saudi energy partnership since the petrodollar agreements of the 1970s.
The deal covers cooperation on civilian nuclear power development and positions American nuclear technology in the rapidly growing Saudi energy market. Saudi Arabia has announced plans to build multiple nuclear power plants as part of its Vision 2030 economic diversification strategy.
The agreement follows a framework commonly known as a “123 Agreement” under the Atomic Energy Act, which establishes the legal basis for sharing nuclear technology, materials and equipment between nations. Such agreements require extensive nonproliferation safeguards.
The signing has accelerated U.S. nuclear diplomacy globally, with Secretary of State Marco Rubio signing a parallel civil nuclear cooperation MOU with Paraguay on Aug. 4. The two agreements signal a broad push to expand America’s nuclear technology partnerships with both major energy producers and developing nations.
The United States is competing with China and Russia for the global civil nuclear market, where both countries have aggressively marketed reactor technology. Russia’s Rosatom has built or is building nuclear plants in Turkey, Egypt, Bangladesh and other countries, while China has exported nuclear technology to Pakistan and is pursuing deals across the developing world.
The Saudi agreement could generate billions of dollars in contracts for American nuclear companies, including reactor builders, fuel suppliers and engineering firms. The Nuclear Energy Institute, the industry’s trade group, has lobbied for expanded nuclear cooperation agreements with allied nations.
Saudi Arabia currently generates nearly all its electricity from natural gas and oil but has committed to diversifying its energy mix to free up hydrocarbons for export.