Poland asks Korea Hydro to up investment in joint nuclear project

Maciej Stec, vice president of PGE PAK Energia Jadrowa (PPEJ), left, and Wojciech Dabrowski, chief executive officer of Poland’s state-run power company Polska Grupa Energetyczna (PGE) [Photo provided by Korea Hydro & Nuclear Power]

Polish partners of Korea Hydro & Nuclear Power Co. are asking the Korean company to make nearly half of the investment in the construction of two APR-1400 nuclear reactors in Poland.

Wojciech Dabrowski, chief executive officer of Poland’s state-run power company Polska Grupa Energetyczna (PGE), said Monday it hopes KHNP’s investment is high in the nuclear reactor project, specifically about 49 percent stake.

Dabrowski’s remarks were made during his visit to Gyeongju in North Gyeongsang Province to attend the 2023 International Congress on Advances in Nuclear Power Plants (ICAPP). The congress was also joined by Maciej Stec, vice president of PGE PAK Energia Jadrowa (PPEJ), a special purpose company established by Poland’s PGE and Zespol Elektrowni Patnow-Adamov-Konin (ZE PAK) earlier this month.

The Polish entities, however, are asking KHNP to be responsible for nearly half of the investment in the project for the formal agreement to be signed.

Stec told reporters in Gyeongju that the final agreement can be signed any time, although he did note that the foremost task is deciding on the establishment of a second joint entity by KHNP, PGE and ZE PAK, and the investment size.

Dabrowski also added that he wishes KHNP to have a high stake in the joint venture, about 49 percent in particular.

KHNP plans to look into the economic feasibility of the proposal.

“The 49 percent investment request by Poland is higher than what we had initially expected,” said an unnamed official from KHNP. “We will engage in the talks after closely studying the project’s economic feasibility and potential investment recoup.”

KHNP signed a letter of intent with PGE and ZE PAK for the private power plant project in October last year. An LOI is a type of a preliminary agreement between the signing parties before a formal agreement. PGE and ZE PAK plan to accelerate the private nuclear power project led by PPEJ.

They plan to advance the signing of the final agreement to allow the trial operations of the first unit in 2035.

Poland, whose coal share in its entire power generation accounted for 74 percent last year, is carrying out a plan to build new electric power facilities focusing on nuclear reactors by 2040.

The Polish government-led energy plan, dubbed Energy Policy 2040, will be led by the American firm, The Westinghouse Electric Corp., while a nuclear power plant project in Patnow in Konin, Poland, is being led by the private sector.