US development bank considers investing in Polish plant

Wednesday, 13 November 2024

"The involvement of this important entity has more than just a financial dimension for us. It confirms the US administration's interest in our project," said Polskie Elektrownie Jądrowe (PEJ) Finance Division Director, Wojciech Rosiński.

He added that the letter of interest (LOI) signed by the US International Development Finance Corporation reflects the outcome of months of talks held by PEJ with the institution as well as with other leading institutions from the US market interested not only in Poland but also in the global energy transition.

Agnes Dasewicz, head of investments at US International Development Finance Corporation (DFC), added: "DFC is committed to enhancing regional energy security throughout Central and Eastern Europe. This LOI is a step toward reducing regional reliance on Russian energy exports while also seeking to bolster economic growth and create jobs."

The DFC - the USA's development bank - works in partnership with the private sector to finance solutions to challenges facing developing countries, and invests across a range of sectors, including energy, healthcare, critical infrastructure, and technology. In July 2020, DFC lifted its legacy prohibition on funding nuclear energy projects overseas.

PEJ - a special-purpose vehicle 100% owned by Poland's State Treasury - said the letter of interest received from DFC "is another document regarding the financing of the Lubiatowo-Kopalino nuclear power plant project". A similar declaration, for the equivalent of about PLN70 billion, was made earlier by the US Export-Import Bank, as a result of years of talks with Westinghouse, supported by PEJ and Bechtel since last year. Westinghouse and Bechtel jointly form a US consortium that implements the PEJ investment project in Pomerania.

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. 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.