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

Polish state energy giant Orlen has announced that it has reached an agreement with Synthos Green Energy (SGE), a firm owned by Poland’s richest man, to build the country’s first small modular nuclear reactor (SMR).

The project will use technology provided by US-based firm GE Hitachi Nuclear Energy and has previously received financial backing from US state agencies. Orlen says that it will result in Poland hosting Europe’s first BWRX-300 reactor produced by GE Hitachi.

SMRs, which are prefabricated in factories before being installed on site, are seen by their proponents as a fast and cost-effective way of installing nuclear capacity. However, they have not yet been brought into commercial operation anywhere in the world.

“Poland will host the first BWRX-300 small modular reactor in Europe. We are building the energy system of tomorrow,” declared Orlen’s CEO, Ireneusz Fąfara, on Thursday.

“Access to this technology places [us] at the forefront of the global deployment of small modular reactors,” added Orlen itself, which also confirmed that its first SMR will be located in Włocławek, a city in central Poland.

 

Synthos, which is owned by billionaire Michał Sołowow, began moving into SMR technology four years ago. In December 2021, it signed a letter of intent with GE Hitachi Nuclear Energy with the aim of setting up at least 10 BWRX-300 reactors in Poland by 2030.

In 2023, the European Commission approved the establishment of a joint venture between SGE and Orlen, named OSGE, which then signed an agreement with American and Canadian corporations to develop SMRs. Soon after, two US government agencies announced up to $4 billion of support.

However, Business Insider Polska, which was the first to report on today’s agreement, notes that Orlen and SGE have “been at an impasse for a year and a half”, unable to agree on terms for their cooperation.

A particular bone of contention was control over rights to use the SMR technology. SGE has exclusive rights to use it in several European countries, whereas OSGE only has the right to do so in Poland, reports Business Insider.

Last month, Hungary’s nuclear energy development firm, Hunatom, signed a letter of intent with SGE to support construction of up to ten BWRX-300 reactors in the country.

In its announcement today, Orlen said that its new agreement with SGE will see the two firms each hold a 50% equity stake in their joint venture and includes “a licensing agreement that grants OSGE full access to the BWRX-300 reactor technology”.

“We spent over a year negotiating terms that safeguard Orlen’s interests, securing for our joint venture with Synthos direct access to US SMR technology,” said Fąfara.

Earlier this year, the environmental protection agency issued regulations specifying reporting requirements for the potential construction of SMRs in Wrocławek, reports the Gazeta Wyborcza daily. OSGE revealed that preparing such a report will take around two years.

Poland, which currently has no nuclear power generation, has in recent years launched ambitious plans to enter the sector. The former Law and Justice (PiS) government set a target of producing 23% of Poland’s electricity from nuclear by 2040.

The current government has pledged to continue developing nuclear. In April, the state firm developing Poland’s first nuclear power station signed an agreement with a consortium of US companies Westinghouse and Bechtel to continue cooperation on the 192 billion zloty ($51 billion) project.

However, last week, Korea Hydro & Nuclear Power announced that it was withdrawing from plans to build another nuclear plant. It blamed the new government for not supporting for the project – a claim that was denied by the energy minister.

Those plans are separate from the development of SMRs, which are individually much smaller than full-scale power plants. In recent years, Orlen has sought to diversify away from its traditional focus on oil and gas by moving towards nuclear, hydrogen and wind power.


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: Orlen (press materials)

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