PGE Polska Grupa Energetyczna and ZE PAK have signed a preliminary agreement on the formation of a joint special purpose vehicle to carry out a nuclear power plant project in the Konin region. By its presence in the PGE project, the company will safeguard the interest of the State Treasury.

PGE and ZE PAK will each hold 50% of the shares in the newly established company, making decisions based on consensus.

To develop further, the Polish economy needs a strong and independent energy sector. In the next decade, renewable energy sources will play a vital role. Yet, a stable, zero-emission source such as nuclear power will be of key importance. To this end, we are consistently developing the government’s Polish Nuclear Power Program, which is complemented by the project implemented by PGE, ZE PAK and KHNP. The incorporation of a joint company by PGE and ZE PAK is another step in the realisation of this project. It will be a direct partner of the Korean KHNP in the construction of a nuclear power plant in the Konin region. Despite the fact it is a business project, it has the full support of the Polish government. I am confident that its implementation will contribute to reinforcing Poland’s energy security and independence, as well as strengthening our position on the international arena” – says Jacek Sasin, Deputy Prime Minister, Minister of State Assets.

I am pleased that the ZE PAK site in Pątnów has been assessed, after preliminary analyses, as promising for a nuclear power plant location. Together with our partners – PGE and KHNP – we conducted the analyses in just 4 months. I am very glad that we have agreed, as part of the Preliminary Agreement, the key terms of cooperation with PGE. This is a milestone for the construction of a nuclear power plant in Poland. I would like to thank everyone who have worked so intensively on this project. It is fundamental to provide Poles with cheap, clean and stable energy for the next several decades” – says Zygmunt Solorz, Chairman of the Supervisory Board of ZE PAK.

Wasting no time, we have been working efficiently on the nuclear power plant construction project. In less than four months after signing the letter of intent, along with our business partners ZE PAK and KHNP, we have completed key tasks. We have a preliminary plan to erect a nuclear power plant based on Korean APR1400 technology, which, after analysis, has been supplemented with additional proposals and assumptions. Today, we have signed an agreement to establish a company that will secure Polish interests in the construction of a nuclear power plant together with the Koreans” – says Wojciech Dabrowski, President of the Management Board of PGE Polska Grupa Energetyczna.

This is a great day for the Polish energy sector, for ZE PAK and the Eastern Greater Poland region. Our today’s agreement marks the real commencement of the Pątnów nuclear power plant project. We will now immediately submit our application to the Office of Competition and Consumer Protection (UOKiK), hoping for a quick establishment of the company. We are striving to initiate environmental and site studies, as well as a feasibility study, as soon as possible. We are contented that this project is being implemented so competently and at such a dynamic pace” – says Piotr Woźny, President of the Management Board of ZE PAK.

The joint company of PGE and ZE PAK will represent the Polish side at all stages of the project, including the execution of the location and environmental studies, acquiring financing, and the preparation of a detailed investment schedule together with the Korean side, but also, in the subsequent stages, obtaining permits and administrative decisions.

The signed agreement stipulates that a Board Member designated by PGE will serve as President of the Board. On the other hand, one of the members of the Supervisory Board indicated by ZE PAK will act as the Chairman of the Supervisory Board. The establishment of the company by PGE and ZE PAK is conditional on obtaining the approval of the UOKiK.

The central location of Pątnów, at one of the key national energy hubs, enables to evacuate power from Pątnów in all directions while minimising energy transmission losses and optimising the use of the power grid.

The Parties plan that the special purpose vehicle will carry out the next stage of cooperation, i.e.: a feasibility study, site investigation and environmental impact assessment for the planned construction of the nuclear power plant. On the basis of the preliminary analyses conducted so far, it has been assessed that it is prospective to site at least 2 APR1400 reactors with a total capacity of 2800 MW. Two reactors could supply Polish homes and businesses with about 22 TWh of energy, that is ca. 12 percent of today’s energy consumption in Poland. The commissioning of the first unit of the power plant is possible as early as 2035.

On October 31, 2022, the Presidents of three companies, i.e. Polish energy groups: PGE Polska Grupa Energetyczna and ZE PAK, as well as the Korean KHNP, signed a letter of intent, the main objective of which was to develop a plan to build a nuclear power plant in Pątnów, Poland, based on APR1400 technology. By the end of 2022, the Parties were preparing a preliminary plan for the development of a nuclear power plant in the Konin region, and then conducted further complementary analyses. As part of the work on drawing up the plan, preliminary analyses of geotechnical, seismic and environmental conditions were carried out, and an estimated budget was developed for the preparatory works, the construction stage, along with considered financing scenarios and a project implementation schedule, and with the definition of key milestones affecting the potential implementation of the project.