U.S. and Saudi Arabia Sign 30-Year Nuclear Energy Agreement, Launching Saudi Civilian Nuclear Program and Opening Hundreds of Billions in Business for Westinghouse

The U.S. government formally signed a civilian nuclear energy cooperation agreement with Saudi Arabia on Wednesday (22nd), establishing a legal framework for the Kingdom’s civilian nuclear program. The 30-year agreement, valued at hundreds of billions of dollars, will allow American companies to participate in Saudi Arabia’s nuclear energy development.

However, concerns have been raised as the agreement may permit Saudi Arabia to pursue uranium enrichment in the future and does not fully incorporate the non-proliferation mechanisms previously demanded by the U.S., prompting scrutiny from Congress and nuclear non-proliferation experts.

The U.S. Department of Energy stated that the agreement establishes a long-term legal framework for bilateral cooperation, supporting Saudi Arabia’s development of civilian nuclear power while creating export opportunities for American nuclear firms and enhancing the global competitiveness of U.S. nuclear technology.

U.S. Energy Secretary Chris Wright and Saudi Energy Minister Prince Abdulaziz bin Salman signed the nuclear cooperation agreement and a bilateral nuclear safeguards agreement on the same day. Wright emphasized that the collaboration will be based on the highest global standards for nuclear safety and non-proliferation, utilizing America’s most advanced nuclear technologies and research outcomes.

Under the U.S. Atomic Energy Act, such civilian nuclear cooperation agreements—commonly known as '123 Agreements'—must be submitted to Congress for review. Congress has a 90-day review period during which it may block the agreement’s implementation via a joint resolution.

The Department of Energy noted that the agreement qualifies U.S. companies to participate in Saudi Arabia’s nuclear development. Westinghouse Electric is seen as one of the primary beneficiaries. CEO Dan Sumner described the agreement as a significant milestone in U.S.-Saudi energy cooperation, enhancing energy security and unlocking new overseas business opportunities for the American nuclear industry.

Westinghouse’s AP1000 large third-generation nuclear reactor is currently regarded as a leading technological option for new nuclear power plants worldwide and is one of the key nuclear technologies the U.S. government actively promotes. The U.S. government has also been investing in nuclear supply chain development to accelerate the deployment of large reactors like the AP1000 to meet rising electricity demand driven by the rapid growth of AI data centers.

According to the International Energy Agency (IEA), Saudi Arabia currently relies almost entirely on fossil fuels for energy, with approximately 60% of its electricity generated from natural gas and the remaining 40% from oil. As the largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC), Saudi Arabia has been actively pursuing economic diversification in recent years. The country aims to reduce domestic reliance on oil for power generation through nuclear energy, preserving more crude oil for export to increase national revenue.

In contrast to the United Arab Emirates (UAE), which previously signed a U.S. agreement explicitly prohibiting uranium enrichment and nuclear fuel reprocessing—the so-called 'Gold Standard'—the new U.S.-Saudi agreement does not include similar restrictions nor requires Saudi Arabia to adopt the International Atomic Energy Agency (IAEA) Additional Protocol for more stringent inspections, raising significant concerns.

Multiple U.S. media outlets report that the agreement preserves the possibility of Saudi Arabia conducting uranium enrichment domestically. The U.S. and Saudi Arabia will jointly assess whether establishing uranium enrichment facilities is necessary. If deemed essential, American companies may construct such facilities in the future, but under a highly controlled 'Black Box' technology model to prevent the leakage of sensitive technologies.

U.S. Secretary of State Marco Rubio stated that the U.S. would not sign any agreement that could lead to nuclear proliferation, expressing confidence that the cooperation still aligns with non-proliferation principles. However, several members of Congress and non-proliferation experts argue that without stricter international oversight, the agreement could heighten the risk of nuclear proliferation in the Middle East.

The timing of the agreement is notable, as the U.S. continues military strikes against Iran’s nuclear facilities while pressuring Tehran to abandon its nuclear weapons program, yet simultaneously permits Saudi Arabia to advance civilian nuclear energy and retain uranium enrichment capabilities. This contrast has prompted renewed scrutiny of the consistency of U.S. energy and security policy in the Middle East.

In fact, Saudi Crown Prince Mohammed bin Salman has previously stated publicly that if Iran acquires nuclear weapons, Saudi Arabia will follow suit. As a result, the agreement is expected to face intense debate in the U.S. Congress. Supporters argue that U.S.-led cooperation can prevent Saudi Arabia from turning to Russia or China for nuclear technology. Critics, however, warn that this move could undermine the long-standing global nuclear non-proliferation regime and introduce new uncertainties into Middle Eastern security.