ENERGO: Poland’s PKN Orlen and Synthos team up to decarbonise with small nuclear reactor technology

Poland’s state-controlled oil and power conglomerate PKN Orlen and chemicals company Synthos signed an investment agreement on December 7 looking to prepare and commercialise small nuclear reactor technology.

The technology in question is GE Hitachi Nuclear Energy’s BWRX-300 reactors. “The project will offer an opportunity to accelerate decarbonisation of Orlen Group’s production assets while also helping to improve energy security and drive economic growth at home due to its reliance on local supply chains,” Orlen said. 

Synthos has also been looking to decarbonise its power use. Both companies, as well as a number of other Polish businesses, are wary of the growing cost of coal-fired power due to the EU’s climate policy, which puts a price tag on carbon dioxide (CO2) emissions. CO2 emissions have rallied this year to cost €80 per tonne, quadrupling in 12 months.

Building a BWRX-300 reactor takes only about one-third of the time needed to construct a traditional large-scale nuclear power plant, while the cost is around 30% lower. 

A single modular reactor of about 300 MW can reduce emissions by some 300,000 to 2mn tonnes of carbon dioxide per year, depending on the type of fuel being replaced.

The Polish project will build on Canadian experience in the development, investment process preparation, licensing, construction and operation.

Ontario Power Generation (OPG), one of Canada’s largest power companies, is set to commence construction of a BWRX-300 reactor in 2022. 

GE Hitachi estimates that some 50% of the reactor construction expenditure could be incurred in Poland. They would include key plant components such as the turbine and generator, parts of the reactor vessel, and hydraulic systems. 

Under the agreement signed, PKN Orlen and Synthos – via a subsidiary Synthos Green Energy – will each hold 50% of shares and voting rights in the joint venture, giving them joint and equal control of the project. 

Before the joint venture is formed, it must first obtain clearance from the competent antitrust regulator. The shareholders plan to apply for clearance by the end of December 2021.