Key Cernavoda 3 and 4 engineering contract signed

Friday, 15 November 2024

Romania's nuclear power plant operator Nuclearelectrica said that the estimated value of the engineering, procurement and construction management (EPCM) contract, which was signed at the COP29 climate conference, was about EUR3.2 billion (USD3.4 billion).

It will be structured in two phases. The first phase is the Limited Notice to Proceed, lasting between 24 to 30 months, followed by the Final Notice to Proceed phase lasting around 80-84 months. The latter phase is subject to commercial terms being agreed and a Final Investment Decision "being taken in line with the Support Agreement between the Romanian State" and Nuclearelectrica.

_{The contract was signed at COP29, which is taking place in Baku, Azerbaijan (Image: Jonathan Cobb)}

What is the project?
 

Cernavoda is the only nuclear power plant in Romania and consists of two 650 MWe Candu-6 reactors. Unit 1 went into commercial operation in 1996 and unit 2 in 2007. Operator Nuclearelectrica plans to extend the operating life of unit 1 to 60 years. Most of the work on the unfinished units 3 and 4 was done in the 1980s prior to the fall of the government of Nicolae Ceausescu in 1989. It was reported in 2021 that unit 3 was 52% complete and unit 4 30% complete.

In July this year the European Union issued a positive opinion on the technical and nuclear safety aspects of the construction of the two units, which have a scheduled operation date of 2030 for unit 3 and 2031 for unit 4. In October 2022, Romania said Canada and the USA were both offering to help with the financing of the construction of Cernavoda 3 and 4.

In quotes
 

Romania's Energy Minister, Sebastian Burduja, said: "It is the most important project for the Romanian energy sector in recent decades. We have the strongest international partners with us to bring it to fruition by 2031-2032. Signing today's contract required a considerable effort, on all levels: diplomatic, financial, legal. The two new reactors will mean an additional installed power of over 1400 MW at Cernavoda, an increase in annual energy production in Romania by over 11 million MWh, for at least 30 years of operation, over 19,000 well-paid jobs and avoiding a minimum of 10 million tonnes of CO2 emissions each year. Once this investment is completed, in 7-8 years, Romania will provide over 30% of the national energy needs only through nuclear energy production. Today's historic step is also a symbolic one: Romania is able to carry forward strategic projects thought up 50 years ago and blocked by decades of hesitation, carelessness or lack of decision."

Cosmin Ghita, Nuclearelectrica CEO, said: "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 honoured to work on this contract and project with highly professional, internationally recognised partners. 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 decarbonisation."

Joe St Julian, President, Nuclear, AtkinsRéalis, said: "Candu technology has served Romania well and is the right choice for the next 60 years. 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."

Victor Suchodolski, Sargent & Lundy Chairman, President and CEO, said: "We’ve worked with the United States and Romanian governments since the inception of their 2020 intergovernmental agreement to enable cooperation to advance the Cernavoda projects and the civil nuclear power sector in Romania. We bring our comprehensive large-scale integrated nuclear plant design expertise to help provide safe, reliable and sustainable solutions to Romania."

Daniela Gentile, CEO of Ansaldo Nucleare, said: "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. This agreement not only emphasises the importance of international collaboration and Europe’s commitment to nuclear energy, but also reflects confidence in Ansaldo Nucleare’s 60 years-long expertise."

Pierre Bechelany, President of Fluor’s LNG & Power business, said: "Nuclear energy is a safe and clean source of reliable baseload electricity, which is critically important to meeting growing power demands globally. Fluor is pleased to be a part of such an important project for Romania and eastern Europe."

CANDU reactors
 

According to World Nuclear Association, the Canada-developed Candu reactors use heavy water (deuterium oxide) as a moderator and coolant, and are fuelled using natural uranium (as opposed to enriched uranium). The advantages of the Candu reactor are savings in fuel cost, because the uranium does not have to go through the enrichment process, and reduced reactor downtime from refuelling and maintenance. These savings are partially offset by the cost of producing heavy water. 

The first commercial Candu reactors began operation in Canada in 1971 and there are now 27 Candu nuclear power reactors in seven countries as well as 18 'Candu derivative' reactors in India.

AtkinsRéalis said Cernavoda 3 and 4 would be first new Candu reactors built since 2007, and the company's President and CEO Ian L. Edwards, saying: "This is a game-changing contract for AtkinsRéalis and Romania. As the sole commercial licensee of world-renowned Candu technology, we are uniquely positioned to contribute to the vast expansion of the world’s clean power ... this also represents our first step in our expansion around the world as we aim to sell many more reactors."

Canada's government is providing export financing support of CAD3 billion (USD2.1 billion).  The company's Candu life extension reactor support business is a CAD15 billion "total addressable market" with upcoming projects in China, Canada, Argentina, Romania, and South Korea that could include 19 Candu reactors over the next 10 years,