Polish nuclear power plants with the American-Korean dispute in the background. Can we now be confident about the investment in Pątnów?

Westinghouse Electric Company (WEC) and Korea Hydro & Nuclear Power (KHNP) were slated to appear in court, reflecting a prolonged dispute between these two major companies involved in Polish nuclear power plant projects. For nearly a year, the parties have been unable to reach an agreement. The Americans alleged that the technology offered by the Koreans constituted an unlawful utilization of their intellectual property. Conversely, KHNP contended that they had sufficiently modified and modernized the project over time, rendering them no longer reliant on permission to use and export the technology.

Both Westinghouse and KHNP had been vying for Poland’s attention well before their roles in the country’s nuclear plans solidified. Initially, Westinghouse and Bechtel were selected to construct Poland’s first nuclear power plant in the Choczewo commune in Pomerania. However, a surprise announcement in the fall of 2022 revealed plans for additional nuclear power plants in Poland. On October 31 in Seoul, Deputy Prime Minister and Minister of State Assets Jacek Sasin disclosed plans for a second power plant in Konin-Pątnów in Greater Poland, leading to the signing of a letter of intent between state-owned company PGE, Zygmunt Solorz-Żak’s ZE PAK, and KHNP.

Simultaneously, Westinghouse initiated legal action against KHNP regarding the System 80, a technology forming the basis of Korean APR reactor technology. The roots of the dispute trace back to the 1970s when nuclear technology was introduced to South Korea, with Westinghouse overseeing the construction of the initial three reactors. Over time, Korean companies, alongside French and Canadian technologies, contributed to subsequent reactor construction. By the 1980s, Korea standardized their reactor technology, selecting System 80 from American company Combustion Engineering (CE). Korean OPR 1000 reactors were based on System 80, later evolving into the APR 1000 and the subject of the current dispute – the APR 1400, intended for the European market as EU-APR 1400.

Westinghouse’s claim stems from their acquisition of Combustion Engineering in 2001, asserting that the Koreans cannot export System 80-based reactors without their consent due to American export control regulations. South Korea, however, argues that they have significantly modified the American solutions, thereby negating the need for consent from either Combustion Engineering or US authorities.

What does Poland say about this?

The Polish government has consistently distanced itself from reports of the dispute, affirming that none of the planned investments are at risk or facing delays. Officials emphasized their neutrality in the matter, stating that it is up to the Koreans and Americans to resolve their differences independently.

Recent developments suggest that such a resolution may have occurred, despite earlier strong statements from Westinghouse representatives. In April of this year, Patrick Fragman, president of Westinghouse, expressed concerns about the dispute during a meeting with Polish media in Warsaw. He stated, “We are in a legal dispute with KHNP. I cannot imagine a situation in which a country such as Poland, which implements the rule of law, could consider an offer that violates intellectual property rights.” Fragman further asserted, “For us, the Korean project remains virtual. We do not believe this is a credible project. It violates US and international law. In our opinion, a Korean power plant will never be built in Poland.”

There was supposed to be arbitration, will there be a settlement?

The ongoing dispute between Westinghouse and KHNP escalated to the point where it was determined that international arbitration was necessary. This decision raised concerns among the public and energy experts, fearing potential delays in the sale of APR 1400 reactors to Poland and other countries. Resolving intellectual property disputes can be a lengthy process, posing challenges for large-scale investments.

However, there have been recent reports suggesting that the two companies are nearing an agreement. According to these reports, KHNP would compensate Westinghouse for technical advice on the construction of power plants in Poland and possibly the Czech Republic, leading to a potential settlement. Poland’s submission of an application for a location decision for the power plant may have added pressure on the disputing parties to reach a resolution. While awaiting official confirmation from the companies involved, it appears that both parties recognized the potential harm of prolonged disputes and may have chosen to seek a mutually beneficial solution.

APR 1400 – what is all the fuss about?

The APR 1400, or Advanced Power Reactor 1400, represents an advanced 3rd+ generation pressurized water reactor designed for flexible operation in load-following mode. This capability allows for safe and rapid adjustments in power output as needed. The reactor can utilize uranium dioxide (UO2) fuel or a combination of UO2 and mixed oxide (MOX) fuel.

With a high power utilization factor of at least 90% and a minimum fuel cycle length of 18 months, the APR 1400 is designed for efficient and long-term operation. The technology has been in development since 2006, with the first unit, Shin-Kori-3, connected to the grid in South Korea in 2016. Subsequent units, including Shin-Kori-4, Shin-Hanul-1, and -2, and Shin-Kori-5 and -6, have further demonstrated the effectiveness of the APR 1400 design.

Notably, the APR 1400 has been deployed internationally, with installations in the United Arab Emirates’ Barakah Nuclear Power Plant. These reactors have proven to be reliable and capable of meeting a significant portion of the country’s electricity demand.

Safety is a paramount concern in nuclear reactor design, and the APR 1400 incorporates multiple safety features to mitigate risks. These include emergency core flooding systems, steam removal and overpressure reduction systems, containment spraying, and emergency feed water systems. KHNP emphasizes the robustness of the design against natural disasters and terrorist threats, demonstrating its resilience through rigorous testing, including simulated aircraft impact tests on the reactor dome.

Overall, the APR 1400 represents a modern and secure nuclear reactor technology, offering efficient and reliable power generation while prioritizing safety and resilience against potential risks.

Polish nuclear power plants – Choczewo, Pątnów and…

The competition for the construction of Poland’s third nuclear power plant is intensifying, with French company Électricité de France (EDF) entering the fray alongside Korean and American contenders. While EDF’s initial offers for constructing 4-6 EPR reactors were not successful for the Choczew and Pątnów locations, they are still actively pursuing partnership opportunities for the third plant and are engaged in discussions with Polish government representatives.

The need for a third nuclear power plant in Poland is underscored by the country’s energy transition goals. Relying solely on renewable energy sources like solar and wind power presents challenges due to their variability and dependence on weather conditions. Nuclear energy offers a stable and reliable alternative, essential for diversifying Poland’s energy sources and reducing reliance on fossil fuels.

According to Poland’s Energy Policy until 2040, the first unit of the nuclear power plant is expected to be operational by 2033, with subsequent units coming online every 2-3 years thereafter. This ambitious plan aims to have a total of 6 nuclear units with a capacity ranging from 6 to 9 GW. Additionally, Poland is investing in small modular reactor (SMR) technology, with state-owned companies such as Orlen and KGHM spearheading these efforts. The first SMR-based power plant is slated to be operational by 2029, with locations already identified in cities like Włocławek, Ostrołęka, Kraków, Dąbrowa-Górnicza, Stalowa Wola, and Warsaw.