U.S. and multinational public-private partners look to finance up to $275 million for the Small Modular Reactor (SMR) project in Romania
US EXIM and FDC issue Letters of Interest for $4 billion financing
Bucharest, 20 May 2023
SN Nuclearelectrica SA (SNN) welcomes the announcement made by the President of the United States of America, Joe Biden, during the G7 Leaders’ Summit: the United States of America and multinational public-private partners from the United States, Japan, the Republic of Korea and the United Arab Emirates, look to provide up to $275 million for the Small Modular Reactor (SMR) Project in Romania, which includes a Letter of Interest from U.S. Export-Import Bank (EXIM) for up to $99 million from the EXIM Engineering Multiplier Program.
In addition, the EXIM and the U.S. International Development Finance Corporation (DFC) issued Letters of Interest for potential financial support of up to $3 billion and $1 billion, respectively, for project deployment.
The funding of the SMR project in Romania is part of the concrete actions of the Partnership for Global Infrastructure and Investment (PGII), which is mobilising $600 billion by 2027 for infrastructure projects globally.
“Nuclearelectrica welcomes the financing intention announced at the G7, an example of international cooperation for the large-scale deployment of energy projects impacting energy security and carbon footprint reduction.
We are proud to position Romania on the strategic development map of nuclear energy projects. It is a merit that Romania has earned through more than 26 years of safe operation at the highest standards of excellence of the Cernavoda nuclear power plant, through more than 50 years of development of the nuclear industry in Romania, through the rigour of the CNCAN regulator, through the excellence in nuclear engineering and operation training of the Romanian education system, and through the leadership of the entire Nuclearelectrica team. We are proud that Romania will be the second country after the USA and the first in Europe to develop a NuScale VOYGR™ small modular reactor plant and that our project has won the trust and support of the most important financial institutions in the world, as well as of President of the United States of America, Joe Biden, the American Government, as well of the partners in Japan, the Republic of Korea and the United Arab Emirates“, – Cosmin Ghita, General Manager SN Nuclearelectrica SA.
“We are proud that Nova Power & Gas, an E-INFRA Group company, is part of such an important project as the one in Doicești-Romania, a project to replace an old coal-fired power plant with the most modern technology in the field of nuclear power plants – Small Modular Reactors (SMR). We are very pleased with the announcement made today by the President of the United States of America, Joe Biden, at the G7 Summit, regarding the SMR project in Doicești. Together with our American and Romanian partners, NuScale and Nuclearelectrica, we are confident that we will deliver this project on schedule“, said Teofil Muresan, CEO E-INFRA.
The partners involved in financing the small modular reactor project in Romania are: the Japan Bank for International Cooperation (Japan), DS Private Equity Korea (Republic of Korea), EXIM Bank Romania, SN Nuclearelectrica SA, Nova Power & Gas SRL (Romania), Emirates Nuclear Energy Corporation (ENEC, United Arab Emirates), DFC and US EXIM (U.S). ENEC’s involvement in Romania’s SMR project, through in-kind contribution of nuclear experts, represents the first nuclear energy-focussed activity undertaken within U.S.-UAE Partnership for Accelerating Clean Energy (PACE) platform, launched in November 2022, to develop of 100 GW of clean energy by 2035. It is also a first collaborative measure following the MoU signed by SN Nuclearelectrica and ENEC in March 2023.
About Romania’s SMR Project
Romania, through the project company RoPower, founded by Nuclearelectrica and Nova Power & Gas (part of the E-Infra Group), is the first country in Europe and the second after the United States to take the first steps towards the implementation of the first NuScale VOYGRTM power plant with 6 modules and an installed capacity of 462 MWe this decade.
Currently, RoPower and NuScale are carrying out the FEED (Front-End Engineering and Design) study (phase 1) which consists of a series of engineering and design activities and studies, technical analysis of the preferred site, the former Doicești power plant, estimation of the calendar and costs.
The site at Doicesti was selected as preferred, in accordance with all international and national standards, in May 2022, following a study carried out with a grant worth 2.1 million dollars, offered by USTDA, that identified potential sites for the development of SMR power plants. During the FEED study are also applied the recommendations of the IAEA following the IAEA Site and External Events Design (SEED) mission, carried out in August 2022, at the request of Nuclearelectrica.
The financial support announced within the G7 will support the finalization of the FEED study (Phase 2) which consists in the activities for the detailed site characterization, the initiation of activities to obtain authorizations, licensing and regulation, the precise schedule of the project, budget planning for project execution, and preparation for the purchase of long lead materials.
“Being the second country after the US to implement the innovative small modular reactor technology of the American company NuScale, Romania will gain a leading position and multiple socio-economic benefits: it has the potential to become a base for supporting the production and assembly of SMR components in the region and a centre for training and education of future operators and specialists through the recent launch of the E2 Centre at the Politehnica University of Bucharest. Romania joins an international effort to ensure the necessary long-term energy capabilities, with operating expertise and international recognition as one of the most successful operators in the world. We will develop in Romania a safe, efficient, high-performance project, which will be at the same time an example of international cooperation” – Cosmin Ghita, CEO Nuclearelectrica.
The National Company “Nuclearelectrica” SA is the national Romanian company which produces electricity, heat and nuclear fuel operating under the authority of the Romanian Ministry of Energy, with the Romanian state holding 82.49% of shares and other shareholders holding 17.50%, after the listing of the company at the stock exchange in 2013.
SNN operates through Cernavoda NPP two CANDU nuclear units, which are two of the most high-performance units among the more than 400 nuclear plants in the world, a nuclear fuel factory and it has completed integrated fuel cycle through the procurement of a uranium concentrate processing line, in order to support the long-term investment projects of the company.
Nuclearelectrica has a major role at the national level, contributing by more than 18% of the nuclear energy in the total energy production and by 33% in the total CO2-free energy production in Romania.