US govt awards $40 mln for advance nuclear reactor

WASHINGTON, March 8 (Reuters) - The U.S. Energy Department on Monday awarded $40 million to two teams to help develop the next generation nuclear power reactor.

Toshiba Corp's (6502.T) Westinghouse Electric Co and privately-held San Diego-based General Atomics will each get about $20 million for the conceptual design and planning work for the advance reactor.

The department said the designs from the two companies will help it decide whether to build a demonstration reactor that is capable of producing electricity and process heat for industrial applications.

The reactor would be configured for low technical and safety risk with highly reliable operations.

The heat or steam generated by the high-temperatures of nuclear reactors could be used for highly-efficient electricity co-generation, which has the potential to help energy-intensive industries, such as petrochemical producers, reduce carbon dioxide emissions, the department said.

"It's time for America to recapture the lead in the nuclear energy industry and lay the foundation for a stronger, cleaner, and more competitive economic future," said U.S. Energy Secretary Steven Chu. (Reporting by Tom Doggett; Editing by Marguerita Choy)