Cernavodă projects secure financing

Romanian nuclear utility SN Nuclearelectrica (SNN) and a banking syndicate led by JP Morgan SE have signed two financing agreements totalling €620m ($725m) for the refurbishment of Cernavodă NPP unit 1 and the Cernavodă NPP 3&4 expansion project, after receiving the approval by Nuclearelectrica’s shareholders.

The Cernavodă site houses two Candu 6 pressurised heavy water reactors (units 1&2) on a site originally constructed for five. Unit 1 went into commercial operation in 1996 and unit 2 in 2007. Construction of three more units began but was stopped in 1990 when unit 3 was 52% complete and unit 4 was 30% complete. The two 720 MWe operating units provide about 20% of Romania’s power.

Civil construction works on the infrastructure needed for the refurbishment of unit 1, which is currently in its second stage of execution, began earlier in September. The €540m loan for the project will support planning, contracting, engineering, and construction services, procurement of equipment, and securing necessary permits.

In December 2024, Nuclearelectrica signed the engineering, procurement and construction (EPC) contract for the estimated €1.9bn refurbishment project with a consortium of Korea Hydro & Nuclear Power, AtkinsRéalis’s Candu Energy, Canadian Commercial Corporation and Ansaldo Nucleare.

The syndicate financing the loan comprises the following banks: Banca Comerciala Romana SA, Banca Transilvania SA, BRD Groupe Societe Generale SA, CEC Bank SA, Citibank Europe, Dublin Romania Branch, ING syndicate financing the Bank NV Amsterdam – Bucharest Branch, UniCredit Bank SA, and JP Morgan SE headquartered in Germany.

A second loan of €80m will be allocated to Energonuclear, the project company responsible for Cernavodă 3&4, to cover the Limited Notice to Proceed (LNTP) phase, backed by Nuclearelectrica guarantees. This stage includes developing engineering, structuring financing, obtaining European Commission approval, and adopting the final investment decision.

The banks supporting this project include: Banca Transilvania SA, BRD Groupe Societe Generale SA, CEC Bank SA, ING Bank N.V. Amsterdam – Bucharest Branch, UniCredit Bank SA, and JP Morgan. SE.

In November 2024 a €3.2bn EPC management contract for the completion of Cernavodă 3&4 was signed with the FCSA Joint Venture including Fluor, AtkinsRéalis, Ansaldo Nucleare and Sargent & & Lundy Energie.

“The two financing agreements signed today … are part of the financing strategy and are aimed at advancing, according to schedule, two of Nuclearelectrica’s strategic projects: refurbishment of unit 1 and units 3&4, said Nuclearelectrica CEO Cosmin Ghita. “It is our objective to deliver safe, available energy as planned, no delays, no cost overruns. This partnership is a recognition of the robustness of both projects, and a reconfirmation of the complex role nuclear energy is to play in the long-run.”

Nuclearelectrica said that, after increasing nuclear capacity with two additional Candu units (700 MWe installed capacity each) and extending the life of unit 1 by another 30 years, nuclear will account for 66% of Romania’s CO₂-free electricity will come from nuclear power.