The Export-Import Bank of the United States has issued two letters of interest (LOIs) for the financing of U.S.-sourced pre-project technical services in connection with the proposed reactor construction project at Romania’s Cernavoda nuclear plant, the bank announced last week.

Energy firms Nuclearelectrica and Nova Power & Gas have launched a joint venture, RoPower Nuclear, for the development of small modular reactors in Romania, with SMR technology provided by NuScale Power, of Portland, Ore.

Largely state-owned, Nuclearelectrica operates Romania’s sole nuclear power facility, the two-unit Cernavoda plant, while Nova Power & Gas, a subsidiary of the privately held E-Infra Group, is a supplier and distributor of electricity and natural gas in Romania. The two firms own equal shares of RoPower.

As energy security and environmental concerns prompt some countries to increase their reliance on nuclear energy or become first-time adopters of the technology, the U.S. government must decide whether it will offer financing for reactor exports—a move that poses financial risks but could create jobs, address global climate and energy security challenges, and limit Chinese and Russian influence. A new report released on August 25 by the Center on Global Energy Policy at Columbia University’s School of International and Public Affairs, Comparing Government Financing of Reactor Exports: Considerations for U.S. Policy Makers, digs into the history of nuclear reactor financing and delivers recommendations for U.S. policymakers.

Matt Bowen, research scholar at the center and the report’s lead author, told Nuclear News, “Given how important financing is to countries considering new reactor construction, as well as the competition that U.S. vendors face from foreign state-owned entities, Congress and the White House should both focus attention on the issue, including policy options to increase U.S. competitiveness.”

Risch

Manchin

Sens. Joe Manchin (D., W.Va.) and Jim Risch (R., Idaho) recently introduced the International Nuclear Energy Act of 2022, a measure aimed at developing a strategy to counter the growing influence of Russia and China on the global civil nuclear export market.

Manchin is chairman of the Senate Energy and Natural Resources Committee, and Risch is the ranking member of the Foreign Relations Committee.

Bill basics: The legislation, according to the lawmakers, would:

• Establish an office to coordinate civil nuclear exports strategy, establish financing relationships, promote regulatory harmonization, enhance safeguards and security, promote standardization of licensing framework, and create an export working group.

Polish Minister of Climate and Environment Michał Kurtyka (left) and Ex-Im Chairman Kimberly Reed sign an MOU on U.S. energy investment in Poland on December 11. Photo: EXIM

In another sign of U.S. interest in helping Poland develop a civil nuclear power program, the Export-Import Bank of the United States announced last week that it has signed a memorandum of understanding with the Polish government to promote U.S. energy investment in the Central European nation. (For an earlier agreement, see here.)

The MOU was signed in Warsaw on December 11 by Ex-Im president and chairman, Kimberly A. Reed, and Poland’s minister of climate and environment, Michał Kurtyka, during Reed’s three-day visit to Poland.

The Ex-Im: As the official export credit agency of the United States, Ex-Im provides loans, loan guarantees, and insurance to foreign customers purchasing U.S. exports.

The MOU particulars: The MOU calls for Ex-Im and Poland to “explore and identify potential opportunities for Ex-Im financing and to work together to promote business development opportunities related to strategic energy projects and programs,” according to Ex-Im’s announcement. The agreement includes, but is not limited to, support for projects in nuclear energy, in particular in support of strategic projects under Poland’s nuclear power program, low- and zero-emission technologies, clean energy innovation, and critical energy infrastructure, including cybersecurity solutions.

Brouillette

Popescu

U.S. Energy Secretary Dan Brouillette and Romania’s Minister of Economy, Energy, and Business Development Virgil Popescu initialed a draft intergovernmental agreement on October 9 to cooperate on the construction of two additional reactors at the Cernavoda nuclear power plant, as well as the refurbishment of Unit 1.

According to a Department of Energy news release, the agreement, once formally executed, will “lay the foundation” for Romania to “utilize U.S. expertise and technology.” The deal marks a major change in Romania’s plans for its sole nuclear plant, as up until early this year the source for that expertise and technology was expected to be China.