This story has been updated to include a July 23 quote from President Trump.

The United States and Saudi Arabia have reached a civil nuclear cooperation agreement that could allow the Middle Eastern country to develop civilian nuclear infrastructure and provide a new commercial market to the U.S. nuclear industry.

On Tuesday evening, the Wall Street Journal first reported that the two sides had reached an agreement with a term of 30 years. Then, Department of Energy Secretary Chris Wright said Wednesday that he and Saudi Minister of Energy Prince Abdulaziz bin Salman had signed the agreement alongside an accompanying bilateral safeguards agreement.

As President Trump hosted Saudi Crown Prince Mohammed bin Salman at the White House on November 19, Energy Secretary Chris Wright confirmed that the United States and Saudi Arabia have signed a “historic” deal on cooperation in the civilian nuclear energy sector. The “Joint Declaration on the Completion of Negotiations on Civil Nuclear Cooperation” is seen as an important part to strengthen U.S. influence in the Gulf region to counter the influence of Iran, Russia, and China.

Three factors will drive nuclear exports: energy security, decarbonization, and geopolitics. Recent power prices in Europe, coupled with the situation in Ukraine, demonstrate the interplay of all three factors. Nuclear exports have to be viewed in the context of the current geopolitical climate, particularly relative to Russian and Chinese competitive offerings. Finally, the critical importance of nuclear energy in meeting global decarbonization efforts can be a driving force for exports, further enhanced by the inclusion of nuclear energy in clean/green taxonomies and the accompanying support from the ESG (environmental, social, and governance) investor community.

Van Hollen

Amid news stories of possible undeclared nuclear facilities in Saudi Arabia and China's involvement with them (see here and here, for instance), Sen. Chris Van Hollen (D., Md.) on August 19 led a bipartisan group of senate colleagues in sending a letter to President Trump requesting more information on the matter.

Cosigners included Sens. Rand Paul (R., Ky.), Jeff Merkley (D., Ore.), Susan Collins (R., Maine), Tim Kaine (D., Va.), and Jerry Moran (R., Kan.).