Saudi Arabia Signs Nuclear Cooperation Deal with US, Eyes Diversified Energy Mix
Saudi Arabia is taking steps to develop its nuclear energy program as part of efforts to diversify its electricity mix. The country signed a civil nuclear cooperation agreement with the US last month, allowing for the export of US nuclear technologies and materials. This move could reduce the amount of oil used domestically and free up more crude for export.
The International Energy Agency (IEA) estimates that Saudi Arabia's electricity demand will grow by an average of 3.1% annually between 2026 and 2030, with natural gas expected to account for about 80% of the kingdom's electricity generation by 2030.
Nuclear power could provide secure, carbon-free baseload power to support Saudi Arabia's growing investments in renewable energy, according to Justin Friedman, a nuclear energy business consultant. This could also enable the development of clean hydrogen.
The agreement removes a key legal obstacle for US companies seeking to enter the Saudi market and allows them to compete for projects in the kingdom.