Final Investment Decision For Romania's First SMR

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Romania has taken a positive final investment decision to proceed with the country's first small modular reactor (SMR) project in Doicești.

The first mini-nuclear project in Romania is going ahead following the announcement of a final investment decision by the country's majority state-owned energy company Nuclearelectrica.

Located in Doicești, 90 kilometers northwest of capital city Bucharest, Nuclearelectrica will use small modular reactor (SMR) technology from U.S. developer NuScale Power Corporation. The project is located on the site of a former 600-megawatt (MW) coal-fired plant and will use six of NuScale's VOYGR reactors, rated at 77 MW each for a total output of 462 MW. 

First SMR in Romania

"The Final Investment Decision for the SMR project in Doicești marks the transition from the analysis phase to the implementation phase, consolidating Romania's position at the forefront of the new European nuclear industry," said Bogdan Ivan, Minister of Energy. "We are replacing 600 MW from a former thermal power plant with 462 MW of clean, stable and predictable energy. Approximately 4,000 jobs will be generated in the development phase, in construction, production, and component assembly, and in the long term, we are talking about stable, well-paid jobs and the development of a horizontal Romanian industry. Over the next six months, the project will enter a phase of financial structuring and partnership consolidation, during which financing mechanisms will be defined and discussions with potential investors for the execution phase will be advanced. The Doicești project is about Romania building, producing, and consolidating its position in Europe." 

Next Steps

Project company RoPower Nuclear - owned jointly by Nuclearelectrica and Nova Power & Gas - said that geotechnical investigations will be complete by May. It will also continue the licensing process, finalise the pre-EPC (engineering, procurement, construction) contract negotiations, negotiate contracts for long-lead items, define supply chains for materials and equipment and prepare the organisation for the pre-engineering, construction and procurement (pre-EPC) and the EPC phases. The pre-EPC phase is expected to last about 15 months and will aim to deliver an estimated Class 2 budget, preferred contractors and a contractual structure for agreements such as the pre-EPC Agreement, extension of the technology license agreement with NuScale and environmental impact assessment agreements.

Cosmin Ghiță, chief executive officer of Nuclearelectrica, said: "The small modular reactor (SMR) project in Doicești is the project through which Romania is positioning itself on the international map of the nuclear industry, through know-how and the development of the supply chain, at a stage in the energy transition where, globally and in Europe, modular reactors are a solution for ensuring energy security and independence. International reports confirm that the global SMR portfolio has grown by 65% since 2021 to a planned capacity of 22 GW. Therefore, globally, SMRs have become a reality in terms of security of supply and decarbonisation: accepted, developed, accelerated." 

The SMR Opportunity

The surge in interest in SMR technology in Europe and globally comes during a renaissance in nuclear power. The International Energy Agency (IEA) stated last year that interest in nuclear energy was at its highest level since the oil crises of the 1970s, with 40 countries supporting the expansion of nuclear energy. At that time there were 63 nuclear reactors under construction with a combined capacity of 70 gigawatts (GW) - a level not seen since 1990. In its report, The Path to a New Era for Nuclear Energy, it stated that SMR installations could reach 80 GW by 2040 - 10% of overall nuclear capacity globally - but only with the right support. Key to their success will be the ability of the industry to cut the costs of SMRs by 2040 to that enjoyed by offshore wind and hydropower alternatives at roughly US$60-$80 per megawatt hour (MWh). Industrial Info is tracking 50 SMR projects in Europe worth more than US$150 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. 

Key Takeaways

• Romania has signed off on progressing its first small modular reactor (SMR) project.
• It will use 6 SMRs developed by NuScale Power Corporation.
• Industrial Info is tracking 50 SMR projects in Europe worth more than US$150 billion in investment. 

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Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).