Canada considers financing for Polish nuclear power plant

The letter of intent with Export Development Canada (EDC) – a Canadian Crown corporation – is in support of the sale of goods and services by Canadian suppliers. EDC support is subject to the successful completion of its detailed due diligence process and credit approval.

Westinghouse – jointly owned by Canadian firms Brookfield and Cameco – welcomed the signing of the letter of intent, which it said it helped facilitate.

“Not only does this financing agreement underscore the important role Canada will play in helping Europe secure and diversify its energy future, but it will also help prepare the nation’s nuclear supply chain to support the next AP1000 plant in North America,” said Westinghouse Energy Systems President Dan Lipman. “We appreciate the close cooperation of the EDC in helping Westinghouse make AP1000 projects a reality for its customers while bringing home economic benefits to Canada.”

Westinghouse said the announcement demonstrates its “deep commitment to Canada’s economy by securing work for Canadian firms and trade unions supporting Westinghouse’s global fleet of advanced reactors”. For each AP1000 unit that is built outside of Canada, Westinghouse says it could generate almost CAD1 billion in gross domestic product through local suppliers.

Last month, the US International Development Finance Corporation – the USA’s development bank – signed a letter of interest with Polskie Elektrownie Jądrowe (PEJ) to provide more than USD980 million in financing for Poland’s first nuclear power plant. A similar declaration, for the equivalent of about PLN70 billion (USD17.3 billion), was made earlier by the US Export-Import Bank. Westinghouse and Bechtel jointly form a consortium that implements the PEJ investment project in Pomerania.

“We are pleased to see strong interest in our investment project from leading players in the global financial market, with whom we are in constant contact. The letter of intent from Export Development Canada is another confirmation of this fact, and at the same time our next step towards implementation of the strategy for obtaining financing for the entire project,” said PEJ Vice President Piotr Piela. 

PEJ said: “Cooperation with export credit agencies is an important part of the strategy for securing financing for the nuclear power plant in Pomerania – it involves continuing discussions with, among others, entities from countries with extensive nuclear supply chains, in order to maximise and optimise financing opportunities for this key investment project for Poland.”

In November 2022, the then Polish government selected the Westinghouse AP1000 reactor technology for construction at the Lubiatowo-Kopalino site in the Choczewo municipality in Pomerania in northern Poland. An agreement setting a plan for the delivery of the plant was signed in May last year by Westinghouse, Bechtel and PEJ – a special-purpose vehicle 100% owned by Poland’s State Treasury. The Ministry of Climate and Environment in July issued a decision-in-principle for PEJ to construct the plant. The aim is for Poland’s first AP1000 reactor to enter commercial operation in 2033.

Under an engineering services signed in September last year, in cooperation with PEJ, Westinghouse and Bechtel will finalise a site-specific design for a plant featuring three AP1000 reactors. The design/engineering documentation includes the main components of the power plant: the nuclear island, the turbine island and the associated installations and auxiliary equipment, as well as administrative buildings and infrastructure related to the safety of the facility. The contract also involves supporting the investment process and bringing it in line with current legal regulations in cooperation with the National Atomic Energy Agency and the Office of Technical Inspection.

In September, the Polish government announced its intention to allocate PLN60 billion to fund the country’s first nuclear power plant.