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Released March 30, 2015 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Bulgaria's new government has improved its offer to get another nuclear power plant built by offering U.S. company, Westinghouse Electric Company(Monroeville, Pennsylvania), a 49% stake if it pledges to fund 49% of the project.
The plant, proposed for the site of the Kozloduy nuclear power plant on the river Danube, would be the country's seventh nuclear reactor and is expected to cost around $7.7 billion. The deal is much improved on the deal struck between last year's Bulgarian government and Westinghouse, which is owned by Toshiba Corporation (TYO:6502) (Tokyo, Japan). That deal saw Westinghouse agreeing to provide a plant based around its AP-1000 reactor for which it would get a 30% in the project, that it would later return to the state on completion. For additional information, see August 5, 2014, article - Bulgaria's Kozloduy Nuclear Project Revived.
The new deal was revealed by the country's Energy Minister Temenuzhka Petkova at a conference in Sofia, last week.
Speaking to reporters, he said: "We are currently reviewing the shareholder agreement article by article. Our request is for Westinghouse to come as a strategic investor who participates in the project with real, fresh financial resources and stays in as long as possible. What we have asked for from Westinghouse is to have a 49% participation in the project and invest into the plan according to the stake."
Kozloduy nuclear plant, located near the Romanian border, has a generating capacity of 2,000-megawatts (MW) from two reactors that supply around 40% of the country's electricity. There are also plans to extend the life of the two reactors (Units 5 & 6) for another four years. For additional information, see August 29, 2012, article - Bulgaria Tries to Strengthen Nuclear Energy Capacity with Kozloduy Unit.
The other four reactors -- Units 1-4 -- have to be decommissioned as part of the country's obligations for entering the European Union (E.U.).
In January, Bulgarian Prime Minister, Boyko Borissov, warned the European Commission (E.C.) that his country is facing an energy 'catastrophe' following the collapse of the South Stream gas pipeline project last year. For additional information, see January 19, 2015, article - Bulgaria Facing Energy 'Catastrophe'.
Russia's President, Vladimir Putin, cancelled the massive South Stream project in December blaming Bulgarian reluctance as well as European Union (E.U.) pressure. The pipeline would have bypassed Ukraine, running under the Black Sea to bring gas into Europe via Bulgaria - potentially meeting around 20% of E.U. gas demand. For additional information, see December 3, 2014, article - Russia Scraps South Stream Natural Gas Pipeline, Chooses New Route to Turkey.
Borissov said that the collapse of the deal and the worsening relations between Russia and Europe could delay vital overhaul work at the two operational reactors at Kozloduy, which is expected to be led by Russian firms Energoatom Concern OJSC (Moscow) and Rosatom (Moscow, Russia).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
The plant, proposed for the site of the Kozloduy nuclear power plant on the river Danube, would be the country's seventh nuclear reactor and is expected to cost around $7.7 billion. The deal is much improved on the deal struck between last year's Bulgarian government and Westinghouse, which is owned by Toshiba Corporation (TYO:6502) (Tokyo, Japan). That deal saw Westinghouse agreeing to provide a plant based around its AP-1000 reactor for which it would get a 30% in the project, that it would later return to the state on completion. For additional information, see August 5, 2014, article - Bulgaria's Kozloduy Nuclear Project Revived.
The new deal was revealed by the country's Energy Minister Temenuzhka Petkova at a conference in Sofia, last week.
Speaking to reporters, he said: "We are currently reviewing the shareholder agreement article by article. Our request is for Westinghouse to come as a strategic investor who participates in the project with real, fresh financial resources and stays in as long as possible. What we have asked for from Westinghouse is to have a 49% participation in the project and invest into the plan according to the stake."
Kozloduy nuclear plant, located near the Romanian border, has a generating capacity of 2,000-megawatts (MW) from two reactors that supply around 40% of the country's electricity. There are also plans to extend the life of the two reactors (Units 5 & 6) for another four years. For additional information, see August 29, 2012, article - Bulgaria Tries to Strengthen Nuclear Energy Capacity with Kozloduy Unit.
The other four reactors -- Units 1-4 -- have to be decommissioned as part of the country's obligations for entering the European Union (E.U.).
In January, Bulgarian Prime Minister, Boyko Borissov, warned the European Commission (E.C.) that his country is facing an energy 'catastrophe' following the collapse of the South Stream gas pipeline project last year. For additional information, see January 19, 2015, article - Bulgaria Facing Energy 'Catastrophe'.
Russia's President, Vladimir Putin, cancelled the massive South Stream project in December blaming Bulgarian reluctance as well as European Union (E.U.) pressure. The pipeline would have bypassed Ukraine, running under the Black Sea to bring gas into Europe via Bulgaria - potentially meeting around 20% of E.U. gas demand. For additional information, see December 3, 2014, article - Russia Scraps South Stream Natural Gas Pipeline, Chooses New Route to Turkey.
Borissov said that the collapse of the deal and the worsening relations between Russia and Europe could delay vital overhaul work at the two operational reactors at Kozloduy, which is expected to be led by Russian firms Energoatom Concern OJSC (Moscow) and Rosatom (Moscow, Russia).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
