WASHINGTON, Aug 29 (Reuters) - Ghana on Thursday signed

an agreement with a U.S. developer for a nuclear reactor using

technology from NuScale Power ( SMR ), the U.S. State Department

said on Thursday, as the country seeks its first atomic power

plant.

Nuclear Power Ghana and Regnum Technology Group signed the

agreement to deploy a NuScale VOYGR-12 small modular reactor, or

SMR, at a U.S.-Africa nuclear energy summit in Nairobi.

SMRs are smaller than today's reactors and can be built in a

factory. But there are lingering questions about whether they

will ever be widespread commercially.

WHY IT IS IMPORTANT

The U.S. is looking to promote technologies it considers to

be clean energy and sell them to developing countries. The

administration of President Joe Biden believes that nuclear

energy, which generates power virtually emissions free, is

critical in the fight against climate change.

Nuclear power, on the other hand, produces long lasting

nuclear waste.

NuScale is the only company with a license to build a U.S.

SMR. Last year it canceled its only project in the U.S. amid

rising costs.

WHO WAS VYING TO SIGN WITH GHANA?

Other contenders for the plant included France's EDF, and

China National Nuclear Corporation, an energy ministry official

in Ghana said in May.

South Korea's Kepco and its subsidiary Korea Hydro Nuclear

Power Corporation, as well as Russia's ROSATOM were also

competing for the contract expected to span the next decade, the

official said at the time.

KEY QUOTE

"Ghana and many other African countries are pursuing nuclear

energy to achieve their economic development, energy security,

and decarbonization goals," said Aleshia Duncan, deputy

assistant secretary for international cooperation at the U.S.

Department of Energy. "It's imperative that the United States

remain a strong and engaged partner, offering technical

expertise and resources to ensure the successful deployment of

nuclear energy across the continent."