USA pours $billions into Poland, in effort to market USA’s small and large nuclear reactors to Europe

The Road to US Nuclear Energy Revival May Run through Warsaw

BY Matt Bowen , Sagatom Saha • MAY 23, 2023

United States civil nuclear diplomacy is back on the move. Last month, the Export–Import Bank of the United States (EXIM) and the Development Finance Corporation (DFC) announced financing of up to $3 billion and $1 billion, respectively, to deploy US small modular reactors (SMRs) in Poland.[1] SMRs—smaller, more uniform designs intended to be factory-manufactured to lower nuclear energy costs—have benefited from congressional support and interagency interest in the Biden administration. This follows the Trump administration’s reversal of a legacy prohibition on DFC funding of US nuclear energy exports.

United States civil nuclear diplomacy is back on the move. Last month, the Export–Import Bank of the United States (EXIM) and the Development Finance Corporation (DFC) announced financing of up to $3 billion and $1 billion, respectively, to deploy US small modular reactors (SMRs) in Poland.[1] SMRs—smaller, more uniform designs intended to be factory-manufactured to lower nuclear energy costs—have benefited from congressional support and interagency interest in the Biden administration. This follows the Trump administration’s reversal of a legacy prohibition on DFC funding of US nuclear energy exports………..

The Polish Opportunity

With EXIM Bank and DFC having just signed letters of intent to support the deployment of the GE-Hitachi BWRX-300 SMR with Orlen Synthos Green Energy as the most recent example,^[3] Poland has been the epicenter of the revival of US commercial nuclear diplomacy.

The 2020 US-Poland Intergovernmental Agreement (IGA) on nuclear energy cooperation^[4] was a political commitment, and in 2021 the US Trade and Development Agency funded a front-end engineering (FEED) study for potential deployment of a AP1000 nuclear power plant.^[5] These developments likely facilitated Poland’s selection of the Westinghouse AP1000 for large reactor builds in 2022.^[6]

Separately, Poland-headquartered mining company KGHM announced a plan in 2023 to deploy modular reactors designed by the US company NuScale Power, and in April submitted an application to the Polish Ministry of Climate and Environment to build NuScale SMRs in Poland.[7]

Successfully deploying both large-scale reactors and SMRs in Poland could accelerate progress throughout a region (Romania, Slovakia, Estonia, Czech Republic, and Ukraine) that has coal plants in need of retirement by mid-century to meet decarbonization goals. Poland’s neighbors have, in some cases, handshake agreements to adopt US nuclear technologies. For example, at the 2021 United Nations Climate Change Conference in Glasgow, US special presidential envoy for climate John Kerry and Romanian president Klaus Iohannis jointly announced Romania’s intention to build NuScale SMRs. A May 2023 announcement at the G7 Leaders’ Summit included support for the Romanian SMR project of up to $275 million from the United States, Japan, Republic of Korea, and United Arab Emirates, as well as Letters of Interest issued by EXIM and DFC for potential support of up to $3 billion and $1 billion for project deployment – similar to potential package for Poland.[8] US diplomatic efforts also contributed to the Czech Republic at least excluding Russian and Chinese companies from a tender to build a new reactor that will entail roughly $6.6 billion of investment into the country.[9]

Financing the Deal

For all of the announcements, there are no done deals just yet. Part of Russia’s competitive edge in the past has stemmed from the ability of Rosatom, its state-owned enterprise, to offer a “one-stop shop” including favorable financing terms that private sector companies cannot match alone.[10] The United States will ultimately have to grapple with this challenge if it expects to be competitive in international markets.

To date, the US playbook in Poland has consisted of an IGA demonstrating US political commitment and an intent to finance; funding for FEED work from USTDA; and now, letters of intent from EXIM Bank and DFC. The process has been improvised and tactical, but it could be replicated elsewhere as part of a long-term, sustainable approach. The missing piece at the end—US government financing agencies’ ability to quickly finalize deals—could make the difference, especially as the United States competes with Russia and China for reactor supply deals.

The US may be able to improve the efficiency and terms of its reactor export financing offers to other countries through measures such as:…………………………………………………more https://www.energypolicy.columbia.edu/the-road-to-us-nuclear-energy-revival-may-run-through-warsaw/

May 25, 2023 - Posted by Christina Macpherson | marketing, USA