Canada Backs Poland’s First Nuclear Power Plant with $1.45 Billion Support
Canada has taken a bold step to support Poland’s energy transition with Export Development Canada (EDC) issuing a letter of intent offering up to PLN 6 billion ($1.45 billion) to finance Poland’s first nuclear power plant. Notably, Polskie Elektrownie Jądrowe (PEJ), Poland’s nuclear power plant developer will spearhead the project which is located at the Lubiatowo-Kopalino site in Pomerania. This move places Canada among key foreign backers of Poland’s nuclear vision, alongside prominent U.S. agencies.
Piotr Piela, Vice President of PEJ expressed his exuberance saying,
“We are pleased to observe great interest in our investment from leading entities of the global financial market, with whom we are in constant contact. The EDC’s letter of intent is another confirmation of this and at the same time our next step towards the implementation of the strategy of obtaining financing for the entire project.”
Poland’s Nuclear Vision Gets Global Boost
EDC, a Canadian government institution, has a robust track record of financing global energy initiatives. Its support for this project depends on a detailed due diligence process and a favorable credit decision.
Significantly, EDC’s motive to boost Canadian exports fits perfectly with its involvement in the project because the supply chain creates valuable opportunities for Canadian businesses.
The press release from PEJ highlighted that previously it secured letters of intent from the American Export-Import Bank and the International Development Finance Corporation, totaling about PLN 75 billion. The company believes partnering with export credit agencies is crucial to securing funding for the nuclear power plant in Pomerania.
The strategy includes ongoing discussions with organizations from countries that have strong nuclear supply chains and seeking to expand and streamline financing options for this current project.
This shows foreign interests can potentially strengthen PEJ’s ability to optimize funding for this vital project. The Polish government also announced plans to allocate PLN 60 billion to the nuclear initiative, thereby reinforcing its domestic backing.
Image: Total net electrical capacity of nuclear units in Europe as of September 2024, by country (in megawatts)
Source: Statista
According to Statista, until September 2024, France tops the European country list with the largest net nuclear power capacity, with over 61 gigawatts. France’s nuclear electricity generation amounted to approximately 338 terawatt-hours in 2023.
Poland Bets on Westinghouse AP1000® Reactors
From the Westinghouse press release, we discovered that the plant design contains three advanced AP1000® reactors, a Generation III+ technology developed by Westinghouse.
It further highlighted, that under an “engineering services agreement” signed last September with PEJ, Westinghouse and Bechtel will complete a customized design for a plant with three AP1000 reactors.
This reactor model stands out for its operational safety and efficiency. Subsequently, Westinghouse and Bechtel, together will finalize site-specific engineering components including:
- Nuclear and turbine islands
- Add on installations and auxiliary equipment
- Safety of the facility and infrastructure-related
The contract also ensures compliance with Polish regulations, involving collaboration with the National Atomic Energy Agency and the Office of Technical Inspection. This detailed planning reflects Poland’s commitment to global safety standards.
Source: Westinghouse
How Canada Will Benefit from Nuclear Investments?
Canada’s involvement in Poland’s project also unlocks substantial economic benefits for their domestic firms. For every AP1000 unit built outside Canada, Westinghouse estimates a GDP boost of nearly CAD $1 billion through its local suppliers.
Dan Lipman, President of Westinghouse Energy Systems
“Not only does this financing agreement underscore the important role Canada will play in helping Europe secure and diversify its energy future, but it will also help prepare the nation’s nuclear supply chain to support the next AP1000 plant in North America. We appreciate the close cooperation of the EDC in helping Westinghouse make AP1000 projects a reality for its customers while bringing home economic benefits to Canada.”
The company’s Canadian stakeholders, including Brookfield and Cameco, further amplify the synergy between international and domestic goals. Westinghouse remains the only nuclear vendor with proven Generation III+ reactor technology. This makes the energy giant a leader in Canada’s nuclear ambitions.
The AP1000 reactor is ready for deployment in Canada, with a four-unit facility projected to begin generating electricity by 2035. Such a project would power over three million homes and generate CAD $28.7 billion in GDP during construction. Annual operations would contribute CAD $8.1 billion while creating 12,000 high-quality jobs.
Globally, more than 30 AP1000 units are planned, offering Canadian firms consistent opportunities in this rapidly expanding sector.
Canada-Poland Partnership: A Win for Global Clean Energy
This partnership highlights Canada’s growing role in global clean energy transitions. For Canada, it showcases the nation’s ability to leverage expertise and resources to drive international energy projects.
For Poland, it represents an absolute winning decision to diversify its energy sources and reduce reliance on fossil fuels. The country does not have any operational nuclear reactors for power production until today.
Many environmentalists in Poland had opposed nuclear energy due to the cost and extensive timelines, favoring other renewable energies as a more viable option. However, Poland’s nuclear stance weighed in more than the opposition.
The collaboration also ensures the Westinghouse AP1000 reactor technology gains a stronger foothold in Europe, paving the way for additional projects in North America and beyond.
Overall, this strategic alliance with Canada marks a key milestone for Poland, ushering in a new era in nuclear energy.
The post Canada Backs Poland’s First Nuclear Power Plant with $1.45 Billion Support appeared first on Carbon Credits.
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