ZE PAK has signed a shareholders’ agreement with SGE S.A. concerning the preparation and execution of the project for the construction and operation of small modular reactors (SMRs) in Pątnów. A company will be formed whose objective will be to carry out the SMR construction project on premises currently owned by ZE PAK. Nuclear power generation on the site of the former coal-fired power station represents the greatest and most realistic opportunity for the development of Eastern Greater Poland, including the Konin region, and for providing these areas with new prospects for growth. ZE PAK will hold a minority interest in the joint venture. Ultimately, six reactors with a combined capacity of 1,800 MW may be built in Pątnów.

- This partnership is a great asset for the Konin region and its residents. I am delighted that we have come to an agreement with Michał Sołowow, whose commitment and determination are bringing the launch of nuclear power in Poland a step closer. The construction of a nuclear power station on our former coal-mining sites is a prime example of the transition of the Polish energy sector. The energy and fuel crises of recent years clearly demonstrate that Poland must have its own stable sources of energy. And such a source could be the six SMR reactors to be built on ZE PAK’s site,” says Piotr Żak, Chairman of the Management Board of ZE PAK SA.

- The signing of the agreement between SGE and ZE PAK lays a solid foundation for the construction of six ultra-safe and efficient BWRX-300 reactors in Pątnów. This is one of the most critical energy locations in Poland: the lack of an available, stable energy source could disrupt the operation of the grid, and the decommissioning of the lignite-fired power plant is, unfortunately, inevitable. The development of a nuclear energy sector based on SMRs takes us into the 21st century. I believe that our joint efforts can serve as a good example of a gradual yet rapid transformation of the Polish energy sector, in which stable sources of nuclear energy will replace the coal-fired power stations being phased out. This is a project that can significantly strengthen the country’s security – both energy security and physical security – but above all support the competitiveness of Polish industry and create new opportunities for the development of the entire economy. Personally, I am very happy that we have signed an agreement today with Piotr Żak and that we will tackle this challenge together,’ said Michał Sołowow, founder of SGE.

The redevelopment of post-mining sites and areas formerly occupied by coal-fired power stations has been one of ZE PAK’s main objectives for several years. In 2021, the first agreement was announced regarding ZE PAK’s involvement in the SMR development project, and in 2022 the company took steps towards the construction of a large nuclear power station. Neither project was finalised, yet their common ground was the recognition of Eastern Greater Poland and the Konin region as suitable sites for nuclear reactors. This is supported by the terrain and environmental conditions, the location in central Poland, and access to the existing transmission grid. Important to note is that the development of nuclear energy also enjoys a high level of public acceptance in the region.

Experience in recent years has shown that the construction of large-scale nuclear reactors should be the responsibility of the state, whilst SMR technology can be developed by private entities such as SGE. SGE cooperates with GE Vernova Hitachi Nuclear Energy Americas LLC and holds the exclusive right to promote, offer and implement the BWRX-300 technology.

The first SMR project, based on four BWRX-300 units, each with a capacity of 300 MW, is already ongoing in Darlington, Canada. The first reactor is scheduled to be commissioned in 2030. Another project is getting underway in Tennessee, USA, where the plant is scheduled to be put into service and commence commercial operation in December 2033. This means that SMR technology, and in particular the BWRX-300 reactors, is a viable solution. It is for these reasons, amongst others, that ZE PAK has decided to participate in a project related to the preparation and development of SMRs.

This project, like all nuclear energy initiatives, is long-term and capital-intensive. ZE PAK’s participation will consist of contributing the rights to land currently owned by the company to the joint venture. In subsequent years, ZE PAK will be able to remain in the project as a minority shareholder or sell its shares in the project management company to SGE, thus ending its involvement in the project.