U.S. Reaches Nuclear Power Agreement with Armenia

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land Texas)

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Summary

U.S. Vice President J.D. Vance has signed an agreement regarding nuclear power supplies and services between the U.S. and Armenia with that country's Prime Minister Nikol Pashinyan.

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Deal Opens Doors

During his visit to Armenia, U.S. Vice President J.D. Vance facilitated an agreement between the U.S. and Armenia regarding nuclear power cooperation, with an aim to diversify the former Soviet republic away from Russian energy influence.

Signed with Armenian Prime Minister Nikol Pashinyan, the agreement allows the U.S. to legally license nuclear technology and equipment to Armenia and opens the door for $5 billion of initial U.S. exports to Armenia and an additional $4 billion for ongoing fuel and maintenance contracts.

Initial Confusion

There was a bit of early confusion regarding the announcement, as an apparent mistranslation suggested that the total US$9 billion was for U.S. "investment" rather than "exports." Opponents to Armenia's sitting government accused officials of misleading the public through a mistranslation, but OC Media, an independent media outlet covering the Caucasus region, cites state media outlet Armenpress (publishing in Armenian) as stating that officials said the remarks had been interpreted by the U.S. side's translator "in accordance with the established procedure."

The clarification was eventually made, resolving that Armenia now has the ability to purchase U.S. technology rather than receive direct foreign investment from the global superpower.

Fortuitous Timing?

The U.S.-Armenia agreement isn't an obligation to purchase U.S. equipment and technology; it simply allows Armenia the right to the technology--something not granted to all countries. The agreement comes only days after Armenia forged another understanding with Russian nuclear company Rosatom. Similarly to the U.S. agreement, Rosatom has more or less agreed to lend a firm hand of support for a new reactor or in another life extension to the country's existing reactor, Unit 2 at the Metsamor nuclear plant. Rosatom is presently underway with helping to extend that reactor's life to 2036, but the idea of furthering the unit's operations until 2046 has been floated, alongside that of a completely new reactor.

Prime Minister Pashinyan stated the idea of constructing an entirely new reactor was being discussed with multiple providers. "We are discussing this issue with Russia, the United States, France, South Korea and China," Interfax cited him as saying.

The Potential Projects

Unit 1 of the Metsamor plant was commissioned in 1976, followed by Unit 2 in 1980. Both units were shut down in early 1989 following a December 1988 earthquake. While Unit 1 was permanently removed from service, the 440-megawatt Unit 2 was restarted in 1995 and has subsequently undergone various life extension projects and is now underway with another.

That project is underway and will extend the plant's life until 2036, which Pashinyan confirmed this week. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report. Pashinyan emphasized that an extension until 2046 was being considered.

But bigger prizes await, and both Russia and the U.S. have let Armenia know that each country would be a strong partner in construction of an entirely new reactor. Some of the details remain vague as discussions regarding a new unit are really only starting to unfold, despite being on the table for a while.

Armenia floated the idea of a third reactor at the Metsamor site as early as 2007, and the idea was still under consideration when the Fukushima-Daiichi meltdown in Japan suddenly brought a pause to much global nuclear development. The idea seemed to have fizzled out after that.

In early 2024, Armenian officials again floated plans for a new reactor within eight to 10 years and formed a joint-stock company to evaluate options and proposals. At its recent meeting regarding its nuclear capabilities, Rosatom offered "comprehensive cooperation" in the project, according to Reuters. Less than a week later, the U.S. has now stepped up to the plate, offering its own services and equipment. Small modular reactors (SMRs) are under consideration for the project, and Vance further emphasized the implementation of SMRs in remarks following the signing of the agreement.

Pending Choice

Armenia now has a great deal to consider: The overarching decision is ultimately "Which country's technology will we adopt?" and cascading from this are multiple details such as reactor type (conventional or SMR), which model of reactor, and how long Metsamor 2 will operate. Both Russia and the U.S. have been forthright in their support of the project, but Pashinyan continues to name France and South Korea as possible partners also.

With such eager players willing to lend a helping hand, Armenia shouldn't have a problem in getting the ball rolling on a new reactor addition. Construction could potentially begin in a few years, resulting in probable completion of a new unit in the mid-2030s, just as the current life extension for Metsamor 2 runs out.

In some sense, an updated version of the Cold War is being waged with Armenia featuring as a piece in the game, this time to achieve a goal constantly emphasized by U.S. President Donald Trump: "global energy dominance."

Key Takeaways

• The U.S. has struck an agreement with Armenia to allow it access U.S. nuclear power technology and services.
• The agreement opens the for $5 billion in initial nuclear exports from the U.S. to Armenia and an additional $4 billion for fuel and maintenance.
• Armenia's deal with the U.S. comes less than week after a similar show of support from Russia.
• Armenia is considering constructing a new nuclear reactor and has suggested it is focusing on SMRs.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).