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Canada signs $3-billion deal to finance nuclear power in Romania
Canada is helping to finance two new nuclear reactors in Romania, which that country’s energy minister says will help diminish Russia’s ability to use its energy exports as a weapon. Canadian Energy Minister Jonathan Wilkinson signed the $3-billion deal with his Romanian counterpart, Sebastian Burduja, in Ottawa.
He says it is first and foremost about adding new non-Russian energy sources, and Romania is in talks to share with other countries in the region to ease their reliance on Russia, too.
Burduja said Romania already has an agreement with neighbouring Moldova to share some of the power from the two new Candu reactors, which are expected to go online by 2032.
The country is in talks with Ukraine, Hungary and Austria as well.
Two Canadian-made Candu reactors already account for one-quarter of Romania’s electricity supply and the two additional reactors will increase that to almost one-third.
The Canadian financing is limited to what Romania’s nuclear operator spends to buy equipment and expertise from Canadian companies.
Burduja says the deal is partly about climate change, because it will help ease Romania’s need to burn coal to make electricity. He said those supply about one-fifth of Romania's electricity, and the two new ones will be of a similar size. But he says it is first and foremost about adding new non-Russian energy sources, and Romania is in talks to share with other countries in the region to ease their reliance on Russia, too.
În turn, Canadian Energy Minister Jonathan Wilkinson said the financing offer is up to $3 billion for Romania's national nuclear operator to buy supplies or services from Canadian companies.
The funds will partly come from Export Development Canada and partly from the Canada Account, which supports export financing deemed to be in Canada's national interest.
Wilkinson linked the deal to a promise Canada made in 2022, following Putin's decision to invade Ukraine: to work with allies in Europe and help them replace Russian sources of energy.
Much of the focus following that promise was on natural gas, which many European countries rely heavily on Russia to obtain.
Nuclear power, however, has been a Canadian success story, Wilkinson said, with the Candu reactors developed decades ago. He said nuclear power conversations are also being had with other countries, such as Poland. Ambassadors from Ukraine, Poland, and Finland were among those who attended the signing ceremony for the Canada-Romania nuclear deal Tuesday.
Two Canadian-made Candu reactors already account for one-quarter of Romania’s electricity supply and the two additional reactors will increase that to almost one-third.