Agreement paves way for reactor deployment and could also allow uranium enrichment
The US has signed a landmark nuclear deal with Saudi Arabia that paves the way for commercial nuclear reactor deployment and could allow the kingdom to enrich uranium in the future.
In a statement on 22 July, the US Department of Energy (DOE) said its secretary, Chris Wright, and his Saudi counterpart, Prince Abdulaziz bin Salman, signed a “peaceful nuclear cooperation agreement” along with a “bilateral safeguards agreement”.
According to the DOE the agreement, commonly known as a 123 agreement, will provide “great access” for US firms to the Saudi nuclear energy programme
The full details of the deal have yet to be released, but the timing of the announcement and its reference to an “accompanying bilateral safeguards agreement” are seen as controversial because the US’s war with Iran is being fought in part to prevent Tehran enriching uranium and to make it difficult for Iran to build a nuclear weapon.
US media reported before the deal was announced that it could potentially allow Saudi Arabia to enrich uranium, although this has not been confirmed.
Those reports suggested that, after undertaking a joint study with the US, Saudi Arabia may be allowed to enrich uranium on its soil to produce fuel at a US-built enrichment facility, instead of relying on imported fuel.
A civil nuclear deal with Saudi Arabia has been in the works for years during both Donald Trump’s first administration and that of former president Joe Biden. No deal has been finalised before now, in part because of concerns that it could offer Saudi Arabia a path to develop a nuclear weapon.
Lawmakers Fear Lack Of Safeguards
The deal will be submitted to Congress for review, where it could face opposition among lawmakers who fear a lack of monitoring safeguards to restrict Saudi Arabia’s uranium enrichment. The BBC said it appears lawmakers do not have the votes needed to block Trump from putting the agreement in place.
The DOE said the 123 agreement will benefit US industry, workers and supply chains while helping to meet Saudi energy needs.
It said the two agreements advance US and regional security by upholding high standards of nuclear safety, security, and nonproliferation and strengthening the US’s competitive edge in civil nuclear technology.
“These agreements reflect our two nations’ shared commitment to strengthening US-Saudi commercial relations, delivering prosperity at home and security to our allies abroad,” said Wright.
“Rest assured, these agreements uphold the highest standards of nuclear safety and nonproliferation, while relying on the world’s best nuclear technology and scientists, designed right here in the United States.”
The Saudi Arabian government said in a statement that it had signed the agreement, finalising negotiations over the peaceful uses of nuclear energy.
It said the deal will contribute to developing joint cooperation regarding nuclear security, safety and non-proliferation, adding that it reflects the shared vision of both countries to expand cooperation in the fields of energy and future technologies and support sustainable development.
Background: What Is A 123 Agreement?
A 123 agreement, named after Section 123 of the US Atomic Energy Act, sets out the framework for peaceful nuclear cooperation between the US and other countries, allowing the transfer of nuclear material, reactors, and technology while ensuring safety and non-proliferation.
They are designed to govern how US companies can export nuclear technology while preventing partner countries from developing nuclear weapons.
Key aspects of 123 agreements include non-proliferation criteria and International Atomic Energy Agency (IAEA) oversight to monitor nuclear activities.
Reports suggest the Saudi agreement would not require the IAEA’s additional protocol, which gives inspectors broader powers to verify that nuclear material is not being diverted for military purposes.
A 2009 123 agreement with the United Arab Emirates, which has since become the only nation in the Arab World to have built commercial nuclear plants, included an explicate agreement that the UAE would forgo domestic uranium enrichment entirely.
Saudi Arabia, the world’s largest oil exporter, is seeking to generate substantial renewable energy and reduce emissions, under its Vision 2030 reform plan. At least some of this is expected to come from nuclear energy.
In 2022, Saudi Arabia established a national nuclear energy company to develop and operate nuclear facilities. Riyadh said the Saudi Nuclear Energy Holding Company would participate in nuclear projects locally and internationally.
Also in 2022, the kingdom began the process to issue a licence to build its first nuclear station, which reports said could cost about $14bn (€12.2bn).
According to local media, the nuclear station is projected to have a capacity of 2,800 GW.
Earlier reports said bids had been received by South Korea, France, China and Russia, but that information has not been officially confirmed.
