The Obama Administration backed new federal loans for a nuclear project in Georgia.

A $6.5B federal loan guarantee jolts Ga. nuclear power project

Waynesboro, Ga. - The Obama administration signed off Thursday on a $6.5 billion loan guarantee to help Georgia utilities build the nation’s first new nuclear reactors in more than three decades.

Energy Secretary Ernest Moniz traveled to the sprawling Plant Vogtle site in east Georgia to announce the loan aid for Southern Co. and Oglethorpe Power. Another $1.8 billion loan for a third company involved in the plant, MEAG, is still in the works.

“This plant will be the economic engine for the state of Georgia,” said Georgia Power chief executive Paul Bowers. “We are proud to be the first utility to restart the nuclear renaissance here in America.”

The two nuclear reactors underway at Vogtle were supposed to be the first in a wave of new nuclear construction as part of a push toward cleaner energy when the Obama administration announced the aid in February 2010. But the boom never materialized.

Stalled efforts to limit carbon emissions, plunging natural gas prices and other stumbling blocks have delayed the loan four years and stalled a broader nuclear revival. Vogtle on Thursday became the first project to receive the federal loan guarantee since Congress established the program in 2005 to jolt the nuclear industry.

Critics pointed it out safety concerns surrounding nuclear power plants, and cited the nuclear disaster at Japan’s Fukushima nuclear plant in the wake of an epic tsunami there.

“Fewer than three years have passed since the tragedy at Fukushima demonstrated that nuclear reactors can never be safe,” said Katherine Fuchs of Friends of the Earth. “Yet the president and energy secretary are ignoring its lessons.”

But Moniz said the federal guarantee is part of a broader “all of the above” effort to offer an range of alternative energy sources that could lower carbon emissions. He said he huddled with Georgia Power executives to reach a final agreement after years of delays.

“If we don’t move out with these kinds of projects, we won’t be ahead of the train,” said Moniz. “And we in the United States shouldn’t be running to catch up with the caboose.”

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