EXIM, Washington, 12 February 12 2025) The Export-Import Bank of the U.S. met with Bulgaria’s Minister of Energy to discuss financing for two new nuclear reactors at Kozloduy NPP, following EXIM’s $8.6 billion Letter of Interest. The project supports U.S. businesses and aims to strengthen American energy dominance and global competitiveness.
Nuclear Energy
Polish nuclear power plant receives €22bn financial backing from US, French & Canadian ECAs
(EnerData, Grenoble, 17 December 2024) The Lubiatowo-Kopalino nuclear power plant project has collected, based on the letters of intent received so far, declarations of financial commitment for a total equivalent of over PLN95bn (€22bn). The project developer Polskie Elektrownie Jądrowe (PEJ) has received letters of intent from American and French companies to finance Poland’s first nuclear power plant. The French export credit agency Bpifrance Assurance Export and the French public development bank Sfil will provide over PLN15bn (€3.5bn) to the project. In addition, Export Development Canada will finance up to PLN6bn (€1.4bn), on top of commitments from the American International Development Finance Corporation (€17.5bn) and the US Export-Import Bank (€16.5bn). Cooperation with export credit agencies is an important part of the strategy to secure financing for the nuclear power plant.
Ankura business consultants’ turning points for EXIM
(Ankura Consultants, 20 March 2024) The U.S. Export-Import Bank (EXIM) is among the most impactful government agencies when it comes to helping U.S. companies compete for business internationally, finance domestic manufacturing, and build resilient supply chains. Up until 2019, EXIM policies and products were little changed despite the U.S. economy evolving dramatically away from traditional manufacturing to a technology and services-dominated economy. As a result, EXIM users are calling for EXIM to be more relevant and adaptable to our 21st-century economy. Lawmakers are hearing these calls and becoming more receptive to EXIM reform. For example, in 2019, Congress gave EXIM a mandate to bolster U.S. company competitiveness concerning China. EXIM users applauded. More reforms are under consideration in Washington.
Five Key EXIM Bank Reforms proposed by Ankura in Washington:
- 1. Revise EXIM’s U.S. Content Policies to Reflect the Modern Global Supply Chain and Export Finance Environment.
- 2. Codify EXIM’s “Make More in America Initiative” (MMIA)
- 3. Raise EXIM’s 2% Statutory Default Limit and Exempt Technology, Nuclear and National Security Related Financings.
- 4. Modify EXIM’s Underwriting Criterion of “Reasonable Assurance of Repayment.”
- 5. Repeal or Modify EXIM’s Prohibition of Financing Sales of Defense Articles and Services
Small nuclear reactor, funded by JBIC, is cancelled
(Friends of the Earth Japan, 13 November 2023) NuScale Power, a U.S.-based company, has announced the cancellation of its plan to build a small nuclear reactor in Idaho, U.S. The Japan Bank for International Cooperation (JBIC), had invested in NuScale in April last year, together with JGC Holdings Corp. and IHI Corporation. JBIC’s investment in NuScale was $110 million. At the time of JBIC’s investment, we pointed out that even under their new guise of “small modular reactors,” SMRs are no different from conventional nuclear power plants in that they have problems such as radioactive contamination over their life cycle, nuclear waste, accident risk, and the risk of becoming targets of terrorism and war. We also pointed out that SMRs, which are touted for their economic efficiency, actually increase the cost per unit of electricity generated, and argued that investors should not invest in high-risk SMRs.
UKEF Announces Financial Support for Ukraine’s Nuclear Fuel Supply
(Anyuak Media, Warsaw, 12 October 2023) UK Energy Secretary Grant Shapps has made a visit to Ukraine to announce fresh financial support aimed at reducing the country’s reliance on Russia for its nuclear fuel supply. The UK will provide a £192m loan guarantee to Ukraine’s national nuclear company, Energoatom, through the UK’s export credit agency, UK Export Finance. As part of the agreement, UK-headquartered Urenco will supply Energoatom with vital uranium enrichment services necessary for nuclear fuel. Currently, nuclear power accounts for more than half of Ukraine’s electricity generation
UKEF to provide £192m loan guarantee to boost Ukraine nuclear capabilities
(Sky News, London, 23 Augut 2023) Energy secretary Grant Shapps has visited Ukraine to announce fresh financial support for its nuclear fuel supply in a bid to end its reliance on Russia. The UK will provide a £192m loan guarantee to Ukraine’s national nuclear company, Energoatom via the UK’s export credit agency, UK Export Finance. Through the deal, UK-headquartered Urenco will supply Energoatom with uranium enrichment services that are vital for nuclear fuel, with nuclear power generating over half of the country’s electricity. The government hopes this will strengthen Ukraine’s energy security and help end the country’s dependence on nuclear services and nuclear fuel from Russia, as well as further isolate Vladmir Putin.
Comparing Government Financing of Reactor Exports
(Columbia University, New York, 25 August 2022) This report, part of wider work on nuclear energy at Columbia University’s Center on Global Energy Policy, compares the financing terms offered between 2000 and 2021 by the world’s major exporters of nuclear power plants: Russia, France, the Republic of Korea (ROK), China, and the United States. Decarbonizing the world’s energy supply by 2050 will require financing low-carbon energy projects at a cost of upwards of trillions of dollars. Nuclear energy is one of the few dispatchable low-carbon energy resources, and studies by the International Energy Agency have estimated a possible doubling of nuclear power as part of scenarios for achieving net-zero greenhouse gas emissions by midcentury. Large, capital-intensive projects such as nuclear power plants can be challenging for some countries to finance, however. As a result, countries wishing to build nuclear reactors look for attractive financing from supplier nations in the form of loans and equity.
US Exim Bank offers finance for Romanian nuclear plants
(World Nuclear News, London, 9 November 2022) The Export-Import Bank (Exim) – the USA’s official export credit agency – has issued two Letters of Interest for the financing of US-sourced pre-project technical services at the Cernavoda 3 and 4 nuclear power project in Romania. According to Romanian utility Nuclearelectrica, based on the preliminary information submitted, Exim would be able to consider financing up to USD50 million of the US export contract for pre-project engineering services as part of the engineering multiplier programme and up to USD3 billion of the US export contract for engineering and project management services for the completion of the partially-built Cernavoda units 3 and 4.
French ECA role in Polish nuclear expansion
(R and R Life, Manchester, 3 July 2022) Following French/Polish agreement in October 2021 to build 4 to 6 nucelear reactors, the French government has clearly stated its willingness to consider different ways to provide support, which is expected by the Polish side. Electricite de France (EDF) and the French government are open to discussions with the Polish government about who and what type of funding will be provided. EFF VP V. Ramany pointed out that France has a number of institutions that support such programs. “In debt financing, we have strong export credit insurance. This in turn helps in attracting banks to borrow for such projects. With regard to debt, we have, for example, the Public Development Bank SFIL, which can refinance debt at a relatively low cost.” Poland generates most of its electricity from coal and was the only European Union member nation not to commit to climate neutrality by 2050 when the bloc set the target in 2019. But under rising pressure from the EU and with carbon emission costs surging, Warsaw is encouraging more investment in low emission sources.
Russian ECA Helps Bangladesh enter nuclear power age
(Eurasia Review, Albany, 13 November 2021) Bangladesh initiated its nuclear program in 2013 by signing a treaty with Russia that opened up a new avenue in their bilateral cooperation. At that time, the two countries signed a state export credit agreement to implement a nuclear project in Bangladesh. The work on the Rooppur plant started with the direct financial and technical cooperation of Russia. There are garment factories in Bangladesh which are producing in huge quantities. So, Bangladesh needs electricity. In 2009 the power generation was 3200 MW; now it has exceeded 20,000 MW. Two 1200-MW capacity reactors are being set up at Rooppur. Once the first nuclear power plant in Bangladesh begins production, it will kick-start another developmental revolution in the country.
