Nuclear Energy at Poland’s Door

Building a small nuclear reactor is obviously a very costly proposition, involving major capital expenditure. Yet over the facility’s operational lifetime – scheduled for 60 years, with an option of a 30-year extension – expenses are not only stable, they are negligible in the context of potentially gaining inexpensive, market-competitive energy. I therefore believe it will be a major boost to the economy, providing access to safe, zero-carbon, stable energy – and heat. Local governments, soon to be faced with the issue of heating sector transformation, will thus stand to benefit from the solution. Moreover, the state will gain a guarantee of independence from foreign energy resources, and unreliable suppliers from outside Poland.

How certain is it that a small nuclear reactor will cost less, and can they be built faster than a large one?

The investment completion time will certainly be shorter. Such is the specificity of building small nuclear reactors, which – notably – have the capacity for meeting environmental and location requirements identical to those stipulated for large facilities. We expect the first small nuclear reactor in Poland – and thus in Europe – to go live as soon as 2029, and no later than by 2030. In terms of the price of energy generated by a small nuclear reactor, or any comparison with large reactor energy prices, this is something we will only find out once both investments have been completed. The timeline for a large nuclear reactor to go live reaches 2035–2036. Therefore, we will be able to compare the cost of energy generated by each of the respective reactors in a few years.

Does this mean that the company is predicting no obstacles on the way?

While this is a major project and challenge, not least in terms of legislation, we assume that energy security is everyone’s priority and a common goal for everyone. This is why we hope that administrative decisions will be passed in a timely fashion and that subcontractor, labour or component availability will not be an issue. Small nuclear reactors are unique in that most of their structural components are developed by manufacturers on-site. The manufacturer delivers them to the construction site for assembly. The format eliminates the risk of something going awry at the construction and/or assembly stage, while making the whole endeavour much simpler. The investment process resembles a slightly more intricate Lego structure.

What are Orlen Synthos Green Energy’s goals in the nuclear energy field?

Let me begin by emphasising that the entire process is pioneering in nature on a national as well as European scale, which is why our goals will necessarily evolve and remain adjustable to successive project delivery stages. When the notion was first considered by the corporation’s management – having been originally coined by Michał Sołowow and his group of companies – the intent was that of meeting in-house energy demand. The point was to cover manufacturing requirements while gaining access to cheap, green, stable energy.

Today, we are considering several dozen nuclear reactors, to be developed not only with in-house needs, but also the Polish district heating sector in mind. Let me point out that Poland’s district heating network is among the most extensive not only in Europe, but worldwide as well, 16 million Poles connected to the grid. The process of Polish district heating sector transformation has been evaluated at hundreds of billions of zlotys. Allowing access to relatively low-cost heat generation, nuclear energy is actually the only source capable of responding to that sector’s needs.

Pursuant to the current roadmap, we will be able to generate zero-carbon electricity with the capacity to meet in-house needs, as well as the demand of the electricity grid, Polish district heating system, and energy-intensive industries. This is why we are entering assorted agreements, the one with ArcelorMittal a case in point.

Six small nuclear reactor locations have been specified so far. What stage have the investment works reached? Will you be scouting locations for other projects?

Not only does nuclear energy involve a long-term and complex construction process; it carries multiple and diverse restrictions as well. No surprise there – safety is at stake. This is why as an investor, we are ready to accept that the project will cost us more time, labour, and funding.

It is true that we have identified six locations so far, with works to secure another one in progress. Field works have kicked off at approved locations: we are checking how well the plots are suited for nuclear reactor development. It is necessary to eliminate the presence of any exclusionary conditions as specified in the Nuclear Law. We have also opened a regular communication channel with the General Directorate for Environmental Protection, having duly submitted project information sheets – mandatory in the process of securing information regarding environmental testing required for the investment. Cross-border consultations are already underway, Slovakia, Czechia, and Austria having joined so far. We are very much aware that other countries may be coming to the table. Spanning over a dozen months, these consultations will yield an answer to the question of how to deliver the project with no damage to the natural environment of neighbouring states. We have also filed for a principal investment decision with the Ministry of Climate and Environment, to confirm that the government has approved the technology proposed for the given location. We hope to receive the decision soon, as construction works cannot proceed until it is issued.

What about project funding? The company is to receive aid from the US Department of State. What kind of money are we talking about?

The US Department of State is not the only one interested – a number of other potentially interested parties, such as investors and funds, have reached out to us. Spanning several dozen rather than one or two reactors, the scale of the programme is most certainly a factor. We have estimated the cost at around PLN 100 billion. In terms of the funding sources you mentioned, we are to be supported by the Project Phoenix, announced by the US Department of State. Funds are to be allocated to research-and-development and works to draft feasibility studies for the project designed to aid energy transformation and ultimately help achieve net-zero emissions.

Let me add that last week in London, during the annual World Nuclear Association Symposium, we entered into an assistance agreement with the Emirates Nuclear Energy Corporation (ENEC) for our SMR (Small Modular Reactor) development programme. We intend to engage in collaboration allowing us to build SMRs in BWRX-300 technology and take advantage of ENEC’s unique Barakah power plant experience. An exception in the SMR business, the facility was completed on time and within budget. We see the agreement as a gateway to co-operation in the field of BWRX-300 reactor construction funding.

How is the general public responding to small nuclear reactors at your chosen locations?

The response was favourable. To be frank, I am surprised, having expected residents and local governments to react with greater mistrust. We have obviously been asked difficult questions: is the technology safe, how can we benefit from it, what kind of risk does it involve. Local governments and communities expect us to provide detailed clarifications and information we are now making available on an ongoing basis, since our intent is to be open and transparent. This means we will only be investing at locations backing our projects in full. Should we fail to secure complete acceptance, we will bow out of the investment process.

Support is high today, though – local communities are very much aware that small nuclear reactor construction will make their regions more competitive. Once built, they will contribute to infrastructure expansion and create new jobs. One hundred staff are required to operate a single 300 MW power plant unit, another 700 needed for satellite firms: catering businesses, hotels, specialised power plant part suppliers, and so forth. Revenues generated for the budget of municipalities where small nuclear reactors are to be built will reach PLN 12-14 million. That is certainly the kind of profit one does not simply ignore.

MB