Agreement extension enables continued development of Polish plant

Polish power company Polskie Elektrownie Jądrowe has signed an amendment with the Westinghouse-Bechtel Consortium enabling the implementation of the next stage of work under the project to build Poland's first nuclear power plant, as part of the Engineering Development Agreement.
 
(Image: PEJ)

In November 2022, the then Polish government selected Westinghouse AP1000 reactor technology for construction at the Lubiatowo-Kopalino site in the Choczewo municipality in Pomerania in northern Poland. In September 2023, Westinghouse, Bechtel and Polskie Elektrownie Jądrowe (PEJ) - a special-purpose vehicle 100% owned by Poland's State Treasury - signed an 18-month engineering services contract under which Westinghouse and Bechtel will finalise a site-specific design for a plant featuring three AP1000 reactors. In April 2025, PEJ and the Westinghouse-Bechtel Consortium agreed the terms and conditions of an Engineering Development Agreement (EDA) after the previous agreement expired.

On 29 December, PEJ announced it had signed an amendment to the EDA with the Westinghouse-Bechtel Consortium. The amended scope of the agreement provides for the continuation of design works covering the nuclear island, turbine island, and the balance of plant, as well as further in-depth geological survey campaigns. This, it said, allows it to maintain the project schedule by advancing the power plant design and continuing field works, while simultaneously conducting negotiations and finalising the Engineering, Procurement, and Construction (EPC) contract, "which will ultimately determine our cooperation with the Westinghouse-Bechtel Consortium".

"In terms of the current negotiations, we want to proceed reasonably quickly, which is why the amendment signed today allows us to continue talks on the EPC contract, focusing on quality, with no negative impact on the project," PEJ said. "To ensure timeliness, in the amendment to the EDA we have incorporated some of the work that was originally supposed to be included in the EPC contract."

"The extension of the EDA allows for further advancement of design and engineering work, including the finalisation of documentation enabling the procurement of long lead items and documentation for the licence application in order to maintain the assumed project schedule," said Marek Woszczyk, President of the Management Board of PEJ. "These efforts are crucial to meeting the milestones of this strategic project for Poland."

Leszek Hołda, President of Bechtel Polska, added: "The amendment to the EDA paves the way for the launch of the next stage of geotechnical surveys in 2026, covering 1,000 drillings with a total depth of 15 kilometres and 7,000 laboratory tests. In the first half of the year, earthworks will also begin to level the site and prepare it for the construction of temporary internal roads on the construction site. Also, the procurement of the first long lead items, i.e., equipment components of the power plant with an extended production time, will be continued."

State funding

On 30 December, PEJ received treasury bonds issued by the Minister of Finance and Economy with a nominal value of PLN4.6 billion (USD1.27 billion). This is a contribution to cover shares in the company's increased share capital by the State Treasury.

"The state aid received will ensure stable funding for the next stage of the nuclear power plant construction project in Pomerania," PEJ said. "In particular, it will enable the continuation of design and engineering work under the annexed EDA, preparatory works, and activities related to the so-called internal associated infrastructure."

The capital injection for the company was made possible by the European Commission's approval of state aid for the project, given on 9 December, which "enabled, among other things, an increase in PEJ's share capital".

"PEJ is the investor responsible for the construction of Poland's first nuclear power plant to be built in Pomerania," said Wojciech Wrochna, Secretary of State at the Ministry of Energy and Government Plenipotentiary for Strategic Energy Infrastructure. "Currently, preparatory works for the construction are being carried out at the Lubiatowo-Kopalino site. In parallel, the design process for the power plant is under way. The company is negotiating the EPC contract with the US Westinghouse-Bechtel consortium, as well as preparing documentation to inform applications for further administrative permits required to commence construction. The company is also in advanced talks with banks and financial institutions to secure debt financing for the project."

In March 2025, President Andrzej Duda signed a bill that designated funds from the national budget for the construction of the nuclear power plant. Under the bill, PEJ is set to receive PLN60.2 billion in public funding between 2025 and 2030. The remaining funding will be obtained from financial institutions, primarily foreign institutions supporting exports originating from equipment suppliers' countries, including export credit agencies, in particular the American export credit agency Export-Import Bank of the United States.

The aim is for Poland's first AP1000 reactor to enter commercial operation in 2033.

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