Press release
EnergoNuclear, a Nuclearelectrica fully owned subsidiary, and FCSA Joint Venture comprised of Fluor B.V., Fluor Energy Transition Inc. Wilmington Bucharest Branch, AtkinsRéalis, Ansaldo Nucleare S.p.A., S&L Engineers, Ltd. and Sargent & Lundy Energie S.R.L sign the Engineering, Procurement and Construction Management (EPCM) LNTP Phase contract for the advancement of Cernavoda NPP Units 3 and 4 at COP 29 in Baku
Bucharest, November 15, 2024
EnergoNuclear, a Nuclearelectrica fully owned subsidiary, and FCSA Joint Venture comprised of Fluor B.V., Fluor Energy Transition Inc. Wilmington Bucharest Branch, Candu Energy Inc., an AtkinsRéalis company, Ansaldo Nucleare S.p.A., S&L Engineers, Ltd. and Sargent & Lundy Energie S.R.L signed the Engineering, Procurement and Construction Management (EPCM) LNTP phase contract for the advancement of Cernavoda NPP Units 3 and 4 at COP 29 in Baku. The contract price for both the LNTP and subsequent FNTP phase of the EPCM contract is estimated at EUR 3,2 billion.
The EPCM contract, with an estimated duration of 108 months, is structured in two phases, namely the Limited Notice to Proceed (LNTP) phase (24-30 months) and later, subject to commercial terms being further refined and agreed and the Final Investment Decision being taken in in line with the Support Agreement between the Romanian State and SNN, the Final Notice to Proceed (FNTP) phase (80-84 months). It provides for EPCM-type services such as: design services required for developing specific types of documentation, project development and management services, engineering services, procurement assistance services, technical assistance services up to the commissioning of the Units and quality assurance and development of an integrated quality assurance system, applied in the Contractor’s offices and also on site.
“Today marks a major milestone in the advancement and ultimately completion of Romania’s strategic Cernavoda NPP Units 3 and 4 project. The EPCM contract represents the very foundation of the project. We are honored to work on this contract and project with highly professional, internationally recognized partners such AtkinsRéalis, Fluor Corporation, Ansaldo Nucleare, Sargent and Lundy as the success of a project derives from both expertise and robust technology. Units 3 and 4, CANDU technology, will provide Romania with energy security and clean energy in a safe and sustainable manner. Once Units 3 and 4 are connected to the grid, 66% of Romania’s clean energy will be provided by nuclear energy, showcasing, one more time, the critical role of nuclear energy in deep decarbonization. I express my strong appreciation to the EnergoNuclear team, SNN team and our partners for their professionalism and joint efforts into building together a solid project,” stated Cosmin Ghita, Chief Executive Officer, Nuclearelectrica
“CANDU technology has served Romania well and is the right choice for the next 60 years,” said Joe St. Julian, President, Nuclear, AtkinsRéalis. “The last seven CANDU reactors built around the world, and the ongoing life extension of 10 CANDU reactors in Ontario, have been conducted on time and on budget. We will employ our unmatched nuclear power know-how as the steward of this technology, to ensure a similarly successful outcome for the build of these two new units in Romania.”
The signing of the EPCM LNTP Phase contract for Cernavoda NPP Units 3 and 4 leads the transition into the second FNTP phase of developing the project by the end of which the Final Investment Decision for advancement to Stage III (Construction) will be adopted. At the end of FNTP phase, the project feasibility shall be re-examined based on the new technical and economic indicators and the Final Investment Decision shall be adopted, therefore enabling the advancement to Stage III.
“We’ve worked with the United States and Romanian governments since the inception of their 2020 intergovernmental agreement to enable cooperation to advance the Cernavodă projects and the civil nuclear power sector in Romania,” said Sargent & Lundy Chairman, President and CEO Victor Suchodolski. “We bring our comprehensive large-scale integrated nuclear plant design expertise to help provide safe, reliable and sustainable solutions to Romania. Together, we’re striving to meet the world’s growing energy needs while reducing carbon emissions.”
“This project is a significant milestone that brings Italy together with key international partners. In light of growing electricity demand, nuclear power plays a vital role in energy security and in the transition to cleaner energy,” said Daniela Gentile, CEO of Ansaldo Nucleare. “This agreement not only emphasizes the importance of international collaboration and Europe’s commitment to nuclear energy but also reflects confidence in Ansaldo Nucleare’s 60 years long expertise”.
“Nuclear energy is a safe and clean source of reliable baseload electricity, which is critically important to meeting growing power demands globally,” said Pierre Bechelany, President of Fluor’s LNG & Power business, who attended the signing. “Fluor is pleased to be a part of such an important project for Romania and eastern Europe.”
Through the development of the CANDU Units 3 and 4 Project, Romania will reach about 19,000 indirectly generated jobs, and the contribution of nuclear energy in the total energy production at national level will reach 33%, considering an increase in consumption of 2.1% per year. 20 million tons of CO2 will be avoided annually with 4 units in operation. In addition to the positive impact on energy stability and the achievement of decarbonization targets, nuclear power projects also contribute to the development of the domestic supply chain.
About 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.
The NPP (CNE) Cernavoda branch operates 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 completed an 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.
Nuclearelectrica has 28 years of operating experience. Through its 3 strategic investment projects, (Cernavoda NPP Unit 1 Refurbishment, Cernavoda NPP Units 3 & 4 Development and SMR Deployment), the company is looking to provide clean energy, support Romania’s energy stability and decarbonation targets, support the Paris Agreement and to also support human health impact initiatives.
About AtkinsRéalis
Created by the integration of long-standing organizations dating back to 1911, AtkinsRéalis is a world-class engineering services and nuclear company dedicated to engineering a better future for our planet and its people. We create sustainable solutions that connect people, data and technology to transform the world’s infrastructure and energy systems. We deploy global capabilities locally to our clients and deliver unique end-to-end services across the whole life cycle of an asset including consulting, advisory & environmental services, intelligent networks & cybersecurity, design & engineering, procurement, project & construction management, operations & maintenance, decommissioning and capital. The breadth and depth of our capabilities are delivered to clients in strategic sectors such as Engineering Services, Nuclear and Capital. News and information are available at www.atkinsrealis.com or follow us on LinkedIn.
About Ansaldo Nucleare
Ansaldo Nucleare is part of the Ansaldo Energia group and covers all activities in the nuclear sector, from the design of critical high-tech components to lifetime extension, from decommissioning and waste management to fusion. It is a key player in the development of Small Modular Reactors and Generation IV reactors. Ansaldo Energia Group is one of the world leaders in power generation. Its core business is the supply and service of components and technological solutions for power generation with rotating machines. Headquartered in Genoa (Italy), the Group employs over 3,300 people and has a strong international presence with more than 30 offices around the world. Thanks to its leading-edge technologies and skills, Ansaldo Energia Group contributes to the global energy transition path.
About Sargent & Lundy
Founded in 1891, Sargent & Lundy is one of the longest-standing full-service architect engineering firms in the world. The firm is a global leader in power and energy with expertise in nuclear power, grid modernization, renewable energy, energy storage, carbon capture, hydrogen power and conventional power. Nuclear power has been one of Sargent & Lundy’s core competencies since 1954, with proven capabilities in engineering, design, analysis, compliance and project management. The firm delivers comprehensive project services – from consulting, design and implementation to construction management, commissioning and operations/maintenance – with an emphasis on quality and safety. It serves public and private sector clients in the power and energy, gas distribution, industrial and government sectors.
About Fluor Corporation
Fluor Corporation (NYSE: FLR) is building a better world by applying world-class expertise to solve its clients’ greatest challenges. Fluor’s nearly 34,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world. Fluor had revenue of $15.5 billion in 2023 and is ranked 265 among the Fortune 500 companies. With headquarters in Irving, Texas, Fluor has provided engineering, procurement and construction services for more than a century. For more information, please visit www.fluor.com or follow Fluor on Facebook, Instagram, LinkedIn, X and YouTube.
