US agency signs letter of intent to provide $1bn financing for Poland’s first nuclear plant

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A US federal agency has signed a letter of intent (LOI) to provide $1 billion (4 billion zloty) in financing for the construction of Poland’s first nuclear power plant.

“The United States is proud to be Poland’s trusted partner on the path to clean, safe, and affordable nuclear energy,” wrote the US embassy this week after the letter of intent was signed by the United States International Development Finance Corporation (DFC).

“DFC is committed to enhancing regional energy security throughout Central and Eastern Europe,” said the agency’s head of investment, Agnes Dasewicz. “This LOI is a step toward reducing regional reliance on Russian energy exports while also seeking to bolster economic growth and create jobs.”

Polska i Stany Zjednoczone zrobiły kolejny znaczący krok w kierunku budowy pierwszej polskiej elektrowni jądrowej. Amerykańska Korporacja Finansowania Rozwoju Międzynarodowego @DFCgov podpisała list intencyjny dotyczący udzielenia pożyczki w wysokości 1 miliarda dolarów Polskim… pic.twitter.com/Oimd1NiUFV

— US Embassy Warsaw (@USEmbassyWarsaw) November 13, 2024

In 2022, Poland named US firm Westinghouse as its partner in developing the nuclear plant, which will be located on the Baltic coast. Construction is currently scheduled to begin in 2028, with the first of three planned units of the power station expected to begin operating in 2035.

The DFC’s intention to support the project follows a similar declaration from the US Export-Import Bank, another federal agency, which has indicated a willingness to provide 70 billion zloty ($17.1) in financing, reports Polskie Elektrownie Jądrowe (PEJ), the Polish state entity responsible for the plant.

PEJ finance division director Wojciech Rosiński stressed that DFC’s involvement holds significance beyond the “financial dimension” as it “confirms the US administration’s interest in our project”.

 

The US ambassador to Poland, Mark Brzezinski, meanwhile described the plans as a “symbol of our shared commitment to a clean and secure energy future” and declared that “the US is fully committed to supporting Poland’s energy transformation”.

The nuclear plant is a central element of Poland’s long-term strategy to move away from its current reliance on coal – which produced almost two thirds of electricity last year – and replace it largely with nuclear and renewables.

In September, the Polish government outlined plans to spend over 60 billion zloty on developing the first nuclear plant by 2025, covering around 30% of the total costs. The remainder is expected to come from foreign borrowing.

Poland also has plans to develop further nuclear power plants, and last week signed a memorandum of understanding with Japan on developing nuclear energy.

Japan and Poland have signed an agreement on developing nuclear energy.

Poland, which is planning to build its first nuclear power stations, hopes the cooperation will allow it to draw on Japan’s experience to “build nuclear skills and competences” https://t.co/oIHQXfV1Yj

— Notes from Poland 🇵🇱 (@notesfrompoland) November 7, 2024

Notes from Poland is run by a small editorial team and published by an independent, non-profit foundation that is funded through donations from our readers. We cannot do what we do without your support.

Main image credit: Polskie Elektrownie Jądrowe / x.com

Alicja Ptak is senior editor at Notes from Poland and a multimedia journalist. She previously worked for Reuters.