PKN Orlen, Synthos sign small, mcro nuclear reactor deal

Leszek Szymański/PAP

Polish oil & gas company PKN Orlen has signed a framework agreement with the Synthos company to cooperate on the implementation of small and micro nuclear reactors (SMRs), Orlen CEO Daniel Obajtek has announced.

Obajtek told a Tuesday press conference that in the coming months a special purpose vehicle (SPV) will be established called Orlen Synthos Green Energy, which will undertake implementation of the technology.

"As Orlen we will invest in SMR technology but that in no way collides with the plans of the Polish government to build large nuclear reactors," Obajtek said.

"SMRs are easier to build, zero-emission, have a low exploitation cost and can be an addition to the Polish energy system… their construction is cheap and fast, which guarantees a rapid rate of return," he added.

The two companies also plan to work together in offshore wind energy projects. Synthos had earlier announced the independent introduction of offshore projects but now Synthos CEO Zbigniew Warmuz said: "We want to cooperate with Orlen on offshore projects."

He added that the intention is to create another SPV for the offshore wind farms in which Orlen will hold a 51-percent share and Synthos 49 percent.