The Canadian government has agreed to lend C$3 billion in export financing to a Romanian nuclear energy company as part of a deal to support the building of two new reactors in the nation.
Nuclearelectrica will collaborate with Canadian firms to create Canada Deuterium Uranium (CANDU) reactors, units 3 and 4, at the Cernavoda nuclear power facility, which is already operational.
A representative for Global Affairs Canada confirms to GTR that the export funding will be supplied through the government’s Canada Account rather than the national export credit agency, Export Development Canada (EDC).
When EDC is unable to assume the financing risk, the Canada Account technique is used; however, the agency typically assists in the negotiation, implementation, and administration of these arrangements on the same basis as corporate account operations.
According to the Canadian government, the agreement will reduce emissions and help Romania phase out coal power by 2032. According to Nuclearelectrica, the project is expected to be finished by 2031, with nuclear energy accounting for more than a third of domestic energy production after that.
The Export-Import Bank of the United States (US Exim) is also supporting the proposed plant expansion, providing a direct loan of US$57 million to EnergoNuclear, a wholly owned subsidiary of state-backed Nuclearelectrica, to support pre-construction engineering and feasibility studies.
The need for Romania and other European nations to lessen their dependency on Russian energy while boosting energy security has been brought to light by Russia’s harsh and unjustified invasion of Ukraine. When it comes to this, Natural Resources Canada declares that “Canada is stepping up to support Europe’s energy future in the face of supply shortages while advancing shared priorities.”
The agreement, which would let various businesses compete for contracts through an open procurement process, is focused on the entire Canadian supply chain rather than a specific exporting company, according to a representative from the government department. The pact is expected to generate hundreds if not thousands, of employment in the manufacturing industry as well as for scientists and engineers.
