By Phil McKenna for New Scientist:
Nuclear power got a boost and big oil took a hit yesterday when US President Barack Obama submitted his 2011 federal budget proposal to Congress. The budget calls for an immediate $36 billion increase in loan guarantees for new nuclear power plants and eliminates $36.5 billion in subsidies to oil and natural gas companies over a 10-year period.
Federal loan guarantees could be a huge boost to the US nuclear power industry, which hasn’t had an order for a new plant since the 1970s. The guarantees allow power companies to get lower interest rates when they secure project financing.
The US Department of Energy already has authority to grant $18.5 billion in loan guarantees, enough for two to four nuclear plants. If approved by Congress, the additional…