Together about small nuclear reactors - KGHM signed a letter of intent with the Legnica Special Economic Zone

Cooperation in R&D projects and investment initiatives related to the small nuclear reactor (SMR) technology - KGHM has signed a letter of intent with the Legnica Special Economic Zone on this matter. The signatories of the document will discuss opportunities for potential joint involvement in the implementation of SMR investment projects.

In 2022, KGHM signed a preliminary work agreement with the American company NuScale Power, LLC (a supplier of nuclear technology) as the first step in implementing the SMR technology within the KGHM Group’s business operations. In April this year, KGHM applied to the Ministry of Climate and Environment for the principal decision for a project to build a small modular nuclear power plant (SMR) in Poland.

“KGHM is a company with a modern approach to transformation and pro-climate solutions. We implement a Climate Policy that aims to achieve climate neutrality by 2050. We prove that small modular reactors are not just a vision of the future, but the most viable answer to the energy needs of large industry. Cooperation with the LSEZ is another step towards achieving our goals,” said Tomasz Zdzikot, the CEO of KGHM Polska Miedź S.A.

Mateusz Wodejko, KGHM’s CFO, added that for KGHM, nuclear power means energy independence and lower costs. “The investment in a SMR will allow the company to maintain its global business advantage. The introduction of the nuclear power technology based on small modules will also support the energy transition of the Polish economy,” said Mateusz Wodejko.

“Our goal is energy that is available, safe, environmentally friendly, and stable in terms of prices, and I believe it can be achieved even faster in partnership with KGHM. This also strengthens the competitive edge of our subregion as a place that is not only good for investment, but also stable, which is particularly important for businesses. We have chosen the direction of “new technologies” and are consistently pursuing it. The letter of intent we signed with an experienced partner is one of the elements of LSEZ’s energy transformation,” added Przemysław Bożek, the president of the Legnica Special Economic Zone.

The cooperation between KGHM and the Legnica Special Economic Zone will include, among other things, an analysis of the available technologies for small nuclear reactors and a search for best practices in conducting research and measurements to identify the geological and geotechnical conditions for SMR sites. Joint efforts will also be made to promote the development of SMRs in Poland, including changes in legislation related to the public funding of such projects.

KGHM is waiting for the Ministry of Climate and Environment to issue a general opinion on selected conditions allowing the construction of a 462 MW modular nuclear power plant consisting of six modules, each with a capacity of 77 MW. The application was prepared based, among other things, on design documentation that has just received the final certification in the United States.

NuScale, KGHM’s American Partner, is the first and to date the only SMR technology provider to receive certification for a 50 MW module from the US Nuclear Regulatory Commission (NRC). In January this year, NuScale applied to the NRC for certification of a 77 MW module, which it expects to receive in 2024.

NuScale already placed its first order for the production of pressure vessel components in December 2022, which reflects the significant progress that this technology provider has made in the process of actually implementing the technology. In May 2023, based on an order from NuScale, Doosan Enerbility Co. Ltd began manufacturing forgings for the first 462 MW VOYGR-6TM power plant to be built in the United States in the state of Idaho for Utah Associated Municipal Power Systems (UAMPS).

KGHM conducts its operations in accordance with the idea of sustainable development and constantly strives to make the entire process line safe, innovative, and in line with the idea of a Closed Circuit Economy. Its actions and commitments in these areas are included in its Environmental Policy and Climate Policy, with the overarching goal of achieving climate neutrality by 2050.

Investments that contribute to the energy transition are also of key importance to the company. KGHM seeks to diversify its energy sources, including by actively using renewable sources. By 2030, 50% of the electricity consumed by KGHM will come from its own sources, including RES. The Sierra Gorda mine in Chile is already 100% powered by renewable energy.

Legnica Special Economic Zone is a company that is engaged in attracting investors in southwestern Poland, in the Dolnośląskie Province, one of the most dynamically developing regions of Poland. The LSEZ to date has attracted 83 investors from many parts of the world and has 1,500 hectares of investment land. More than PLN 12 billion in investments and, most importantly, more than 20,000 jobs, which is twice as many as the investors had planned.

The LSEZ is not only focused on the sustainable development of the subregion, but also seeks to ensure safe and environmentally friendly nuclear technology for the development of future energy systems, and the lack of available energy is a common concern of investors. The cooperation with KGHM is another step by the LSEZ in cooperation with and promotion of companies operating in industries associated with new technologies, energy of the future, and electromobility, especially in terms of low- and zero-emission solutions and renewable energy sources.