Bulgaria and US strengthen cooperation on Kozloduy expansion

Bulgaria’s caretaker Energy Minister Vladimir Malinov is on a working visit to the US has attended the first meeting of the steering committee of the intergovernmental agreement between Bulgaria and the US for cooperation on the project for the construction of new nuclear power capacity at the Kozloduy NPP site and Bulgaria’s civil nuclear programme. Executive director of Kozloduy NPP – New Builds Petyo Ivanov was also present at the meeting. On the US side, the meeting was attended by the Assistant Secretary for International Affairs at the US Department of Energy (DOE), Andrew Light.

Minister Malinov noted that cooperation with Washington is key for the development of Bulgaria’s nuclear industry and for achieving the goals related to the responsible use of nuclear energy. “Bulgaria wants its nuclear programme to continue to meet the highest standards of nuclear safety, security, reliability, and efficiency. Our country has a strong interest in leveraging the expertise of US government experts, regulators and the nuclear industry in maintaining this goal,” he said.

The main topic of the first meeting of the steering committee was the need for timely implementation of the project to build a new nuclear power plant in Bulgaria with AP1000 technology. Westinghouse was awarded a front-end engineering & design contract with Kozloduy NPP subsidiary, Kozloduy NPP-Newbuild (KZNPP-NM – Kozloduy NPP Novi Mostnosti) in June 2023. In February 2024, Bulgaria and the US signed a formal agreement to collaborate on the construction of Kozloduy 7&8. The document outlines cooperation in nuclear power development and technology exchange. While the units are to have Westinghouse AP1000 reactors, Westinghouse will not take part in the construction but will retain overall control of the project.

In April, the contract for the provision of initial engineering and design services for the construction of Kozloduy NPP unit 7 with contractor Westinghouse was completed. This enables Kozloduy NPP – New Builds to prepare a procedure for selecting a contractor and conducting negotiations to secure loan financing for the project.

Currently, Kozloduy NPP operates two Soviet-built VVER-1000 reactors (units 5&6). Bulgaria was obliged to close four older VVER-440 units as a condition for accession to the European Union, even though the units had undergone significant safety upgrades. Plans to build a new NPP at Belene comprising two VVER-1000 reactors was cancelled in face of political and financial difficulties after the equipment was manufactured and supplied by Russia.

Regarding the financing of the project, Malinov noted that according to the decision of the National Assembly of December 2023, the proceeds from the sale of the equipment of the cancelled Belene NPP project would be used to support construction of Kozloduy units 7&8. Currently, Bulgaria is hoping to sell the equipment to Ukraine for use at its Khmelnitsky NPP but as yet there is no agreement on price.

In a bilateral meeting later, Minister Malinov and Assistant Secretary Andrew Light reconfirmed the two countries’ intention to build on their excellent cooperation to ensure energy security in the region.

Malinov also had a meeting with Reta Jo Lewis, Chair of the Board of Directors and President of EXIM Bank. He said construction of new nuclear capacities at the Kozloduy NPP site is one of the main priorities in the work of the current government. “We are confident that, in close cooperation with our American partners from Westinghouse, we will be able to follow the schedule for the construction of unit 7 adopted by the National Assembly of Bulgaria. EXIM Bank is the official export credit agency of the US, whose mission is to support US companies in developing domestic and international projects.

According to the tentative timetable included in the decision of the Bulgarian National Assembly, negotiations to secure external financing with financing institutions for the construction of new nuclear facilities should be completed by 30 July 2025. Lewis confirmed that financing the project in Bulgaria is a priority. She said the bank will initiate actions at operational level to secure financing according to the parliamentary timetable.

“We are relying on EXIM Bank’s experience and expertise to ensure that Kozloduy NPP unit 7 is built on schedule. I am confident that with a bank of this stature joining the project, it will be even more attractive to other financing institutions,” Malinov said.