This group brings together the best thinkers on energy and climate. Join us for smart, insightful posts and conversations about where the energy industry is and where it is going.

Post

Three Bidders for CEZ’s New PWRs at Dukovany

Dan Yurman's picture
Editor & Publisher, NeutronBytes, a blog about nuclear energy

Publisher of NeutronBytes, a blog about nuclear energy online since 2007.  Consultant and project manager for technology innovation processes and new product / program development for commercial...

  • Member since 2018
  • 1,714 items added with 1,429,174 views
  • Nov 6, 2023
  • 441 views
  • Three Bidders for CEZ’s New PWRs at Dukovany
  • Czech Republic Approves SMR Roadmap That Calls For Deployment In Early 2030s
  • TerraPower Inks MOU with Mitsubishi Heavy Industries for Advanced Reactor Design
  • Argentina Has New Progress on 32 MW SMR
  • Saudi Arabia Extends Nuclear Bid Deadline for Two 1400 MW PWRs
  • Bulgaria to Build Two Westinghouse AP1000s

Three Bidders for CEZ’s New PWRs at Dukovany

  • Czech Republic / Three Final Bids Confirmed For Up To Four New Nuclear Reactors
  • Contracts could be finalized within next year and new unit ready for operation in 2035

bid cover sheet(NucNet) The company overseeing the project to build new nuclear power plants at the Dukovany site in the Czech Republic announced on 10/31 it had received final bids from three companies.

Elektrárna Dukovany II (EDU II), a wholly owned subsidiary of state utility CEZ, said it had received final bids for the construction of a new nuclear power plant at Dukovany from Westinghouse, France’s EDF and South Korea’s Korea Hydro & Nuclear Power (KHNP). All three submitted initial bids in November 2022.

EDU II said the suppliers had submitted a binding bid for Dukovany-5 and non-binding bids for a further three units. Those units would be Dukovany-6 and two additional units at the Temelín site, Temelín units 3 and 4.

Westinghouse and EDF both said in statements that their bids propose construction of one unit at Dukovany with the potential for a second unit there and two additional units at Temelín.

Both companies are proposing Generation III+ reactor technology – Westinghouse its AP1000 and EDF its newly designed EPR1200. KHNP’s proposed technology is likely to be the APR1400 which is the same model that it successfully built four units in the UAE.

China and Russia Excluded from the Bidding

State-owned companies from China and Russia were excluded from bidding on security grounds. Russia was particularly interested in the Dukovany work as it had previously built VVERs for that site and Temelin and regarded the Czech Republic as a “captive” market due to its prior status as being behind the Iron Curtain of the Cold War. China has attempted to bid on new nuclear projects in eastern Europe but has been rebuffed by both the Czech Republic and Romania on security grounds

Organization of the New Builds at Dukovany and Temelin

The project to build new reactors at Dukovany and Temelin will take place under the management of a special purpose vehicle (SPV) initiated at CEZ in 2015 with an organizational change in the business and strategy division. A subsequent step was also the establishment of two new subsidiaries – Elektrárna Temelín II, as and Elektrárna Dukovany II.

CEZ Group said in a statement on its website that “the separation of projects into special-purpose companies increases the flexibility of choosing a business and investor model for the construction of both projects while preserving their value as much as possible and enables transparent financing of both projects. This will enable the use of both debt financing and equity financing through the equity input of a strategic partner. This can be the state, a supplier or, for example, a strategic investor.”

EDU II Contracts

EDU II Contracts could be finalized within next year and new unit ready for trial operation in 203U. EDU II will now evaluate the bids from “economic, commercial, and technical points of view” and submit an evaluation report to the Ministry of Industry and Trade and then to the Czech government for final approval. Contracts could be finalized within the next year.

The new unit will be built next to the existing power station and will eventually replace some of the existing facility’s capacity when older units are retired. The first of four existing units at Dukovany began commercial operation in 1985.

The Czech Republic has six commercially operational reactor units: four Russia-designed VVER-440 units at Dukovany and two larger VVER-1000 units at Temelín. According to the International Atomic Energy Agency, in 2022 the six units provided 37% of the country’s electricity production.

Construction of a first new unit at Dukovany could begin in 2029. The industry ministry has said it would be the biggest investment in the modern history of the Czech Republic, costing around €6bn ($6.7 billion) or about $5,600/kw. It is expected to be commissioned by 2035.

A second new unit at Dukovany has a target operation date not earlier than the mid-2040s. This would coincide with the retirements of the existing Dukovany VVERs.

CEZ has also said it is planning to deploy small modular reactors with the first to go online in 2032 at Temelín. It said in March it had tentatively identified two preferred sites for additional units.

& & &

Czech Republic Approves SMR Roadmap That Calls For Deployment In Early 2030s

  • Construction would mostly be at existing coal plants, but Dukovany and Temelín nuclear sites also an option

(NucNetsmrsThe Czech government has approved a Ministry of Industry and Trade roadmap (policy statement) (full text – PDF file) that provides an overview of possible sites and investment models for the deployment of small modular reactors (SMRs) in the country, mostly at existing coal sites.

The justification for the roadmap is that CEZ  believes “small and medium-sized reactors (SMRs) are an innovative nuclear reactor technology. The next five to ten years will be key in terms of their marketability, with corresponding business opportunities.”

The roadmap recommends speeding up the process of site selection and preparation so construction of the first SMRs can begin operation in the first half of 2030s.

The roadmap says “the market approach presumes minimal or no involvement from the state. SMR projects should be implemented and financed on a purely market basis with the help of commercial loans and the investor’s own resources, possibly through project financing. This approach may change if as so far almost none of European planned investment in SMRs is occurring without some form of governments support including loans as favorable terms and guarantees for electricity rates.”

In addition to existing nuclear sites at Dukovany and Temelín, promising locations include coal-fired power plants such as Detmarovice, near the eastern border with Poland, and Tisova, near the western border with Germany. The roadmap says the “prerequisite” is to use mainly brownfield sites that are being used for existing coal resources.

Power Company Favors Temelín For First SMR Unit

State power company CEZ has said it is planning to deploy SMRs with the first to go online in 2032 at Temelín. It said in March it had tentatively identified two preferred sites, both coal-fired plants, for additional units.

“Our vision is for SMRs to complement large nuclear units from the 2030s-40s onwards,” said industry and trade minister Jozef Sikela.

“The approved roadmap will provide investors with a certainty, so that they can prepare sites and subsequently make investment decisions. This will give Czech companies the opportunity to participate in supply chains, to look for partners abroad and play an important role in the development of this promising field.”

The government said Rolls-Royce SMR in the UK and US-based GE Hitachi (GEH) are both interested in deploying their SMR technology in the Czech Republic. Rolls-Royce has a 470 MW PWR and GEH is offering a 300 MW BWR.

& & &

TerraPower Inks MOU with Mitsubishi Heavy Industries for Advanced Reactor Design

  • Agreement will allow for collaboration on advanced nuclear technology design and demonstration.

Japan Atomic Energy Agency (JAEA), Mitsubishi Heavy Industries (MHI), Mitsubishi FBR Systems (MFBR), and TerraPower have expanded their Memorandum of Understanding (MOU) for the development of sodium-cooled fast reactor (SFR) technologies.

France Calls It Quits on Sodium Cooled Fast Reactor | Neutron Bytes

In January 2022, TerraPower, JAEA and MHI signed a MOU to collaborate on SFR technology development. In December 2022, the Japanese government revised their Strategic Roadmap for SFR development, clarifying that Japan will begin SFR concept design in 2024.

The government in July 2023 selected a 650-MW pool-type SFR concept proposed by MFBR as the design to be developed, and MHI as the main manufacturer and constructor.

This expanded MOU will allow TerraPower and Japan to explore the opportunity to collaborate on a common reactor design concept, based on the Japan’s fast reactor demonstration program and TerraPower’s existing technologies. This MOU has been revised to include an increase in size of the Natrium design for enhanced cost competitiveness, and metal fuel safety.

TerraPower is currently developing the 345 MW Natrium reactor in the United States, with the support of the U.S. Department of Energy (DOE) through the Advanced Reactor Demonstration Program (ARDP). The first Natrium plant is planned to begin commercial operations in 2030 at the site of a former coal fired power plant in the remote town of Kemmerer, WY.

TerraPower CEO Chris Levesque said, ” . . .this agreement will help us evaluate the design opportunities for large-scale Natrium plants that can support Japan’s carbon targets.”

Japan’s Strategic Roadmap for FR technology identifies SFR is one of the most promising technologies and emphasizes the importance of international cooperation in contributing to a clean energy future.

JAEA president Masanori Koguchi said, “JAEA will play a role as one of organizations in the strategic roadmap for fast reactor development. For effective development, we believe that international cooperation is one of key issues. We will promote Japan – US collaboration on FR development through this expanded MOU.”

MHI executive vice president Akihiko Kato said, “MHI group, as the core company in charge of design and development of the Japanese demonstration fast reactor, will steadily proceed in accordance with the strategic roadmap. We would like to contribute to fast reactor development cooperation between the US and Japan by utilizing the technology and experience we have cultivated over many years.”

& & &

Argentina Has New Progress on 32 MW SMR

  • CNEA and Nucleoeléctrica sign CAREM SMR agreement

(WNN) The National Atomic Energy Commission (CNEA) and Nucleoeléctrica Argentina have signed a new framework agreement for technical assistance for the country’s CAREM small modular reactor project which is underway at the existing site of two CANDU type nuclear reactors – Atucha I & II located just north of Buenos Aires.

The technical assistance framework agreement was signed by CNEA president Adriana Serquis and Nucleoeléctrica President José Luis Antúnez and will have a two-year duration, which can be extended by mutual agreement, and provides a general framework for contracts for CAREM plant developments.

CNEA said the framework covers studies, analysis and calculations for CAREM development, supervision in engineering expertise, technical documentation such as equipment specifications and “advice on control measures, good practices and lessons learned; risk and opportunity analysis; determine training needs for operators and eventually provide them, and advice on licensing issues”.

Specific areas covered by the agreement will be “instrumentation and control, mechanical engineering, electromechanical assembly, pre-commissioning and commissioning, programming, radiation protection, commissioning and operation, simulations, electrical system and thermohydraulics”.

CNEA said the aim of the contract was for CAREM to take advantage of, and learn from, the experience that Nucleoeléctrica (NA-SA) “has been gathering both in operation and maintenance of Argentine plants, as well as in engineering during the completion and commissioning processes of the Atucha 2 plant and life extension of the Embalse plant”.

First concrete was poured for the prototype reactor in February 2014, marking the official start of its construction, however the project was suspended on a number of occasions, including from November 2019 for two years before restarting. In October 2022 CNEA said that civil construction works were expected to be finished by 2024, with initial criticality expected by the end of 2027. These milestones will likely be revised over time.

The CAREM name is taken from Central ARgentina de Elementos Modulares. The 32 MWe prototype is Argentina’s first domestically designed and developed nuclear power unit. At least 70% of the components and related services for CAREM-25 are to be sourced from Argentine companies. The commercial model ultimately envisaged by CNEA as the basis of a multi-reactor plant would have a higher power of between 100 and 120 MWe.

Plans by Argentina to build a new full-size reactor at the Atucha site with a reactor supplied by Chian have stalled as a result of demands by Argentina for several changes to the contract including extensive localization of the supply chain, a life cycle contract to supply nuclear fuel for the anticipated PWR, and a request for more favorable financial terms.

& & &

Saudi Arabia Extends Nuclear Bidder Deadline for Two 1400 MW PWRs

Companies planning to bid for the contract to build Saudi Arabia’s first nuclear power plant will likely get more time to prepare their proposals, according to a source close to the project. An unnamed source told Middle East Business Intelligence (MEBI) that Saudi Arabia is not necessarily in a hurry to build the plant. This would be consistent with Saudi Arabia’s as yet unmet  needs for external technical assistance for the EPC, for regulation and safety, and overall management of the new build.

This announcement coincides with the pause in negotiations with the US over Saudi Arabia’s request for US nuclear technology assistance for the project tied to a proposed multipart diplomatic agreement involving Israel, and Palestinian status on the West Bank and Gaza. The deal would also have provided military security guarantees from the US for Saudi Arabia relative to threats from Iran and its proxies.

The current war in Gaza, caused by the terrorist attacks on Israel by Hamas, has brought these talks to a screeching halt and they are likely to remain frozen until the war is over and there is some degree of improvement in political stability in Israel.

Last month MEBI reported that Palestinian Authority and US officials were in Riyadh to try to establish a breakthrough deal to normalize relations between Israel and Saudi Arabia, which has never formally recognized Israel as an independent state.

The Palestinians are said to be demanding hundreds of millions of dollars and more control of land in the occupied West Bank in the event of a three-way deal between Israel, Saudi Arabia and the US.

2.8GW Nuclear Project

The 2.8GW Duwaiheen nuclear power plant, to be located in Saudi Arabia’s Eastern Province, is expected to be procured using a traditional design-and-build model.

MEED previously reported that the most likely bidders for the main contract are China National Nuclear Corporation, Korea Electric Power Corporation (Kepco),and Russia’s Rosatom.

Holding company

In March 2022, Saudi Arabia announced the establishment of a holding company, understood to be called the Duwaiheen Nuclear Energy Company, to develop nuclear power projects in the country. The proposed location is on the Persian Gulf adjacent to Saudi Arabia’s border with Qatar about 343 miles due east of Ridyah.

Prince Abdullah bin Khalid bin Sultan, Saudi ambassador to Austria and permanent representative to the IAEA, was quoted at an IAEA conference as saying that the holding company will develop nuclear power plants to produce electricity, desalinate seawater and for use in thermal energy applications.

& & &

Bulgaria to Build Two Westinghouse AP1000s

AFP and Bulgarian English language news media reports indicate that Bulgaria approved the construction of two 1150 MW PWR type nuclear reactors procuring the units from Westinghouse. The two new reactors will be located at the site of the state-owned Kozloduy plant on the Danube river, which currently relies on Russian fuel for its two Soviet-built 1,000-megawatt reactors.

The country’s sole nuclear plant signed deals with Westinghouse last year to diversify its nuclear fuel deliveries from 2024 in efforts to replace shipments from Russia in the wake of Moscow’s invasion of Ukraine.

The first unit is to be ready in 2033, while the second is expected to be completed two or three years later, Prime Minister Nikolay Denkov said. Bulgaria is asking for vendor related financing and is planning at this stage to only invest an estimated $250M in the project.

At a hypothetical cost of $5,500/KW, the two plants will cost $12-13 billion. Westinghouse is currently owned by a Canadian private equity firm that has inked a deal expected to close by the end of this year to sell its stake in the company to a joint venture composed of Canadian uranium miner Cameco and a separate business unit of Brookfield spun off from the parent firm.

However, the combined capitalization of the firms in the joint venture is unlikely to be sufficient to cover the cost of vendor financing for the project. It is unclear whether Westinghouse will seek export financing from the US government to help pay for the project or whether it could get it.

A project to build a new nuclear power plant using Russian technology in Belene, also in the north, was abandoned in 2021.

Bulgaria plans to close several coal fired power plants once the reactors are built and the announcement set off protests by coal miners fearful of losing their jobs.

# # #

Discussions
Matt Chester's picture
Matt Chester on Nov 6, 2023

I love seeing the various different countries making progress on SMRs. Such an exciting time ahead

Dan Yurman's picture
Thank Dan for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member

Get Published - Build a Following

The Energy Central Power Industry Network® is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »