Growing Appetite for Nuclear Energy
Nuclear power is undergoing a resurgence. It is viewed as a complementary energy source for power systems increasingly reliant on renewable energy sources such as wind and solar, which are weather-dependent and thus less stable. Orlen has also incorporated nuclear into its energy mix. Alongside Synthos, it aims to generate nuclear power not only for its own consumption but also for broader distribution. Related expenditures are expected to exceed PLN 100 billion, with plans to construct dozens of reactors.
“Poland’s energy transition will not happen without nuclear power. Large nuclear power plants are expected to come online after 2035 or 2036, barring any major disruptions in the project implementation. This is a promising prospect, but it will still be more than a decade before that becomes a reality. In the meantime, we will need to rely on small modular reactors, which can be built faster, providing stable and affordable electricity and heat. They are the sole sensible approach to address our challenges”, said Dawid Jackiewicz, Vice-President of Orlen Synthos Green Energy, during the Economic Forum in Krynica.
Assuming the project stays on track, the first model unit could be completed by 2029. “This timeline is achievable. Our ambition is to have at least ten such units up and running by 2035”, Mr Jackiewicz added.
Familiar Technology
Orlen Synthos Green Energy is a company tasked with the construction of SMRs, established through collaboration between two domestic firms, Orlen and Synthos. The company will construct small nuclear reactors using BWRX-300 technology supplied by General Electric Hitachi Nuclear Energy, a joint venture between American and Japanese companies. These are water-cooled, natural circulation boiling water reactors with a capacity of 300 MWe. The technology has been known for years, with over 100 operational units globally, albeit at a different scale, each boasting a 1,000 MW capacity. In our specific context, the small modular reactors will feature a 300 MW capacity. Nonetheless, OSGE representatives underscore the continuity of technological solutions, which may facilitate accelerated certification by competent authorities.
The company will construct small nuclear reactors using BWRX-300 technology supplied by General Electric Hitachi Nuclear Energy, a joint venture between American and Japanese companies
Similar reactors will be built in the Canadian province of Ontario. The first is expected to come online in 2028, with plans to build a total of four such units. Canadian company Ontario Power Generation and its subsidiaries signed a letter of intent with Orlen Synthos Green Energy earlier this year to collaborate in the deployment and operation of small modular reactors in Europe.
Nuclear Power Also for Others
Orlen Synthos Green Energy aims high. “Our nuclear energy development plans keep evolving. At first, we looked at the possibility of meeting our own energy requirements to supply our plants with affordable, environmentally friendly electricity in the future. However, this attitude is changing. Today, we are discussing deployment of several dozen reactors, not only to satisfy our own energy demand but also to support Poland’s heating industry, energy-intensive companies, and the entire power system”, says Dawid Jackiewicz.
OSGE has requested the Ministry of Climate and Environment to issue a general approval confirming the project’s alignment with public interest and energy policy for the first six locations where SMRs are to be built: Ostrołęka, Włocławek, Stawy Monowskie near Oświęcim, Dąbrowa Górnicza, Kraków-Nowa Huta, and the Tarnobrzeg – Stalowa Wola Special Economic Zone. Preliminary agreements have also been signed with entities holding suitable land in each of these locations, namely with Anwil, Energa, PGNiG Termika, ArcelorMittal, Synthos, and Agencja Rozwoju Przemysłu. Another 13 sites will be unveiled by the year’s end. While selecting the sites, the company relied on preliminary surveys to eliminate potential geological, mining, and environmental obstacles and thoroughly analysed water-related matters, etc. It also considered the economic viability of building the SMRs in a particular location.
Formalities Are Underway
The investor has already submitted an application for environmental decisions to the General Directorate for Environmental Protection for three of the selected sites. A part of the application is the Project Information Sheet prepared by the OSGE team. “In response to this sheet, the General Directorate for Environmental Protection will conduct cross-border consultations, the first round of which has just begun. We will be holding consultations with Slovakia, Czechia, and Austria. It is possible that other countries will join as they have the right to do so. Subsequently, we will receive details regarding the environmental surveys that need to be conducted at each specific location. Following this, we will embark on two years of intensive research, which will provide information on whether we can proceed with the investment process at the selected sites”, said Mr Jackiewicz.
Several weeks ago, the company also requested the Ministry of Climate and Environment to issue the general approval. A positive response will confirm that the locations and technology proposed by the company align with and serve the interests of the State. OSGE has already received a general opinion issued by the President of the National Atomic Energy Agency for the SMR BWRX-300 reactor. The Polish nuclear regulatory authority confirmed the correctness of the reactor’s assumed design in view of nuclear safety requirements.
“With regard to nuclear power, the administrative procedures and the related formalities are intricate, time-consuming, and subject to stringent standards that must be met. Unsurprisingly, the emphasis here is on security. Thus, as an investor, we acknowledge that this process will entail additional time, effort, and resources”, said Vice-President of the OSGE Management Board.
Benefits for Everyone
The development of nuclear power can serve as an economic catalyst, not only by providing affordable, green energy, but also by fostering the emergence of a new industrial sector in Poland. Nuclear projects will spur the development of a new branch of the economy. The investor has already entered into discussions with potential domestic service providers and manufacturers of components that could replace imported ones in the future. “This most likely will not happen during the construction of the first reactor as we need to gain expertise and experience. The companies must secure the necessary permits, certificates, and adhere to rigorous quality standards. However, our ambition is that ultimately Polish suppliers account for at least 50% of this supply chain”, said Mr Jackiewicz.
Company representatives have met with their counterparts from Agencja Rozwoju Przemysłu and maintain ongoing communication with the Łukasiewicz Research Network, which comprises several dozen research institutes capable of supplying components, certifying them, and conducting research on specific solutions in the future.
OSGE and the Łukasiewicz Research Network have also begun cooperation with Polish technical universities with a view to launching a European Centre for Nuclear Energy Personnel Training. More and more universities are joining the cooperation agreement. The collaboration encompasses establishment of the Centre and its subsequent growth, as well as support from the R&D institutes forming part of the Łukasiewicz Research Network. The Centre will facilitate the acquisition of not only theoretical knowledge but also hands-on skills. It will house a full-scale BWRX-300 reactor simulator. Supporting infrastructure, such as the SMR control room and fuel pool, will also be replicated for training purposes. The Centre is to be opened in 2027.
Readiness to Finance Nuclear Power Development
An investment programme of this size entails significant outlays. OSGE estimates that the first reactor will cost about EUR 1.5 billion to build, while the construction of several dozen units will require an expenditure in excess of PLN 100 billion. A number of institutions have expressed their interest in financing the project. In recent days, the US Department of State decided to participate in the financing of the construction of small modular reactors in Poland, Czechia, and Slovakia, aiming to support the region’s transition from coal to SMRs. The funding will be provided by the US project called Phoenix. OSGE is Poland’s only company to receive funds under this initiative. “The funds will be allocated for the preparation of a feasibility study, various research and investigations”, he said.
Earlier, in London, a cooperation agreement was signed with Emirates Nuclear Energy Corporation (ENEC) of the United Arab Emirates. Its objective is to establish a framework for cooperation to enable the development of SMRs based on BWRX-300 technology in Poland, the UK and Central and Eastern Europe. OSGE will be able to draw on ENEC’s experience gained during the construction of the Barakah power plant, which was not only completed on schedule but also within the original budget. “This is rather unusual for the nuclear power sector, where budgets are often overrun and deadlines are hardly ever met. We will collaborate by sharing experience”, said the Vice-President of the OSGE Management Board. The agreement also lays the groundwork for collaboration in financing the construction of BWRX-300 reactors. “We have executed a letter whereby ENEC will invest in our project – we expect a large equity investment”, said Mr Jackiewicz.
In April this year, EXIM Bank and US International Development Finance Corporation announced the possibility of providing up to USD 4 billion to build the first BWRX-300 reactors in Poland, to be constructed by Orlen Synthos Green Energy (EXIM and DCF would invest, respectively, USD 3 billion and up to USD 1 billion). This move was intended as a signal to other financial institutions that the deployment of BWRX-300 technology in Poland is strongly supported by Washington. Polish banks, i.e., PKO BP, Pekao, BGK and Santander Bank Polska have expressed their interest in joining the SMR project.
Opportunity for the Regions
An important aspect is how the public feels about nuclear power. A survey commissioned by Orlen shows that as many as 60% percent of residents approve of constructing a nuclear power plant near where they live. “This attests to the fact that the Poles are very well informed. The meetings we have held thus far indicate a strong level of interest in the topic. Naturally, people ask tough questions and request details. They want to know if the technology is safe, what benefits it brings for local governments, and the potential risks involved We answer these questions with a commitment to transparency, striving to dispel any uncertainties”, said Mr Jackiewicz.
Projects of this type boost competitiveness of the region, create new jobs and foster the development of local infrastructure. Operating a single 300 MW reactor requires approximately 100 operators and engineers, while also securing around 700 jobs in cooperating companies. Another benefit is an opportunity for substantial revenue from taxes and charges for the city and municipal budget, of up to PLN 24 million.
Nuclear power is an essential component of Poland’s future energy mix. It stands as a guarantee of stable supplies of zero-carbon, price-predictable energy, allowing the Polish economy to stay competitive. It is also a crucial factor for the country’s energy security, as nuclear power will facilitate the diversification of energy sources. Moreover, small modular reactors can be put into operation more swiftly. Thanks to the projects implemented by Orlen and Synthos, stable energy from the first SMR will be available for the Polish industrial sector and households by 2030, said Daniel Obajtek, Orlen’s CEO and President of the Management Board.
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