Plans to expand a Texas nuclear plant has gained support from the U.S. government which picked the project as one of four in the country eligible to split 18.5 billion U.S. dollars in loan guarantees, local media reported Thursday.

The federal government on Wednesday chose the South Texas Project nuclear plant as one of the four in the nation to split its multi-billion loan guarantees, according to San Antonio Express-News.

There are presently two operating reactors at the South Texas Project site, which were said to be the largest reactors ever constructed in the United States. Two more reactors are planned to be built.

The boost from the federal government advances the plan by CPS Energy and NRG Energy, co-owners of the project, to build the first U.S. nuclear reactors in 30 years, and could signal a revival of the nation's nuclear industry, San Antonio Express-News said.

A loan guarantee means the government would take on the project's debt if NRG and CPS default on the government's loan.

It's too early to say how much of the 18.5 billion dollars the CPS-NRG project could receive, said Mike Kotara, CPS' executive vice president of nuclear development. The U.S. Energy Department will negotiate with CPS and NRG and a commitment will be made under the department's loan program, NRG said in a statement.

Building the 2,700-megawatt nuclear expansion would be enough to power more than 2 million homes, CPS and NRG have said.

Getting a federal loan guarantee could keep the expansion of South Texas Project nuclear plant on its planned timeline, CPS said. Construction of the reactors could begin when the Nuclear Regulatory Commission grants CPS and NRG a license. That application is pending and could be approved in early 2012, according to Kotara.

Source: Xinhua