Canada considers financing Poland's first nuclear power plant

Polish company Polskie Elektrownie Jądrowe (PEJ) has received a letter of intent from Canadian agency Export Development Canada (EDC). The document envisages potential financial support of up to 2.02 billion Canadian dollars (around CZK 34.6 billion) for the construction of Poland's first nuclear power plant.

The aim of the Canadian government agency EDC's initiative is to support exports of goods and services from Canadian companies involved in the project. However, the provision of financing is conditional on the successful completion of a detailed due diligence process and loan approval.

Westinghouse's response

Westinghouse, which is co-owned by Canadian companies Brookfield and Cameco, welcomed the signing of the letter, saying it had played a significant role in facilitating it.

"This financing agreement underscores Canada's key role in securing and diversifying Europe's future energy supplies. It will also help prepare the Canadian nuclear supply chain to support the next AP1000 project in North America," said Dan Lipman, president of Westinghouse Energy Systems.

"We appreciate our close cooperation with EDC, which helps us deliver AP1000 projects for our customers while bringing economic benefits to Canada," he added.

Westinghouse emphasized that each AP1000 reactor built outside Canada could contribute up to 1 billion Canadian dollars (around CZK 16.9 billion) to GDP through the involvement of local suppliers.

U.S. financial support

Last month, the U.S. International Development Finance Corporation (the U.S. development bank) signed a letter of intent to provide more than USD 980 million in financing for Poland's first nuclear power plant. The U.S. Export-Import Bank had previously issued a similar letter of intent, for around PLN 70 billion (around CZK 411 billion).

A consortium of Westinghouse and Bechtel is working jointly on the project in Pomerania. "We are pleased that leading players in the global financial market are interested in our investment project, and that we are in constant contact with them. The letter of intent from Export Development Canada is further confirmation of this and another step towards implementing our strategy to secure financing for the entire project," said PEJ Vice President Piotr Piela.

Selection of AP1000 technology and progress on preparations

In November 2022, the Polish government selected Westinghouse's AP1000 reactor technology for the construction of the country's first nuclear power plant at the Lubiatowo-Kopalino site in the municipality of (Pomerania). Last May, Westinghouse, Bechtel and PEJ signed an agreement on a plan to build the power plant. PEJ is a special-purpose company wholly owned by the Polish State Treasury.

In July, the Ministry of Climate and Environment issued a key approval for construction of the power plant. Poland's first AP1000 reactor is expected to enter commercial operation in 2033.

In September 2023, an engineering services contract was signed under which Westinghouse and Bechtel, together with PEJ, will complete the design of a power plant with three AP1000 reactors. The documentation covers the nuclear and turbine islands, related facilities, auxiliary systems and administrative buildings. The project also involves cooperation with the National Atomic Energy Agency and the Office of Technical Inspection to ensure compliance with current legislative requirements.

Commitment from the Polish government

In September, the Polish government announced plans to allocate PLN 60 billion (around CZK 352 billion) to finance the country's first nuclear power plant. The move underscores the project's strategic importance for Poland's energy security and economic development.