The accession of Skhidny Mining and Processing Plant to National Nuclear Energy Generating Company Energoatom will have a positive effect on the former’s performance, but it must be preceded by a number of measures, including the corporatization of Energoatom, Energy Minister Herman Haluschenko has said.
“We are working out this way of joining. To do this, we need to take certain actions, in particular, to properly corporatize Energoatom. We are moving in this direction,” he said during question hour in the Verkhovna Rada on Friday.
At the same time, the minister said Skhidny Mining and Processing Plant, represented by Energoatom, has a single counterparty, and the support from the General Company “will solve many issues.”
As reported, at the end of October 2021, Head of Energoatom Petro Kotin noted the impossibility of merging the company with Skhidny Mining and Processing Plant due to its loss, but at the same time expressed hope for financial recovery of the company with the appointment of new head on October 6 Serhiy Shovheli.
Haluschenko earlier said Skhidny Mining and Processing Plant could not join Energoatom. He cited the EBRD and Euratom loans as the reason. However, he said that an alternative to accession could be a transfer to the management, which is working on the ministry.
At the same time, the minister considers it quite logical that Energoatom wants to gain control over Skhidny Mining and Processing Plant when it spends money on it.
The concept of stabilization and further development of Skhidny Mining and Processing Plant by transferring it to Energoatom provided for financial contributions to it by the generating company by reducing the contributions of part of the net profit to the state budget, the Ministry of Energy said at the time.
Energoatom, based on the results of its activities in 2022, must allocate half of its net profit to the budget, provided that the second half is directed to the implementation of an investment program.
The corresponding decision is enshrined in resolution No. 134 of February 16, 2022 on amending the procedure for deductions of a part of net profit (income) to the state budget by state unitary enterprises and their associations, published on Friday on the Uriadovy Portal.
“The share of net profit deducted by Energoatom based on the results of financial and economic activities in 2022 is determined in the amount of 50%, provided that 50% of net profit (income) from its activities is directed to the implementation of the investment program,” the resolution says.
According to Energy Reform, the government has yet to make a decision on the amount of deductions based on the results of 2021.
Westinghouse Electric Sweden AB has accredited Atomenergomash, a separate subdivision of Energoatom, as a supplier of top and bottom nozzles for the company’s fuel assemblies; production of these components is expected to start within six months, Energoatom’s press service reported.
“Necessary equipment has been installed at Atomenergomash to launch manufacturing. At present, pre-commissioning, commissioning, and operation qualification process are going to come to the end. Manufacturing top and bottom nozzles for Westinghouse fuel assemblies are expected to begin within six months,” Hryhoriy Horodner, General Director of Atomenergomash, said.
It is also noted that accreditation was preceded by the successful completion of an audit of Atomenergomash’s integrated management system for compliance with the requirements of ISO 9001:2015 “Quality Management System. Requirements,” SQSR 13-067 “Supplier Quality System Requirements,” as reported by Westinghouse to Energoatom.
“These components are likely to be used not only for manufacturing fuel assemblies to be supplied by Westinghouse for the needs of Ukrainian nuclear power plants, but also for the needs of other consumers of these Westinghouse products across the globe,” Energoatom said.
One of the priorities of Energoatom for 2022 is to launch production of some components for fuel assemblies using Westinghouse technology at Atomenergomash, the report said.
Atomenergomash is a multifunctional service subdivision of Energoatom, which develops and manufactures certified products as well as carries out unit and restoring repair of heat-exchange and heat machinery equipment, pipeline components for nuclear and thermal power plants of Ukraine.
National Nuclear Generating Company Energoatom, taking into account the political situation, has prepared an order to harden the protection of its nuclear facilities and their infrastructure, Head of Energoatom Petro Kotin has said.
“We are introducing a special order to harden security at all our nuclear facilities and their infrastructure. It will, of course, provide for additional steps for the physical protection of the facilities. Of course, we will harden these measures. And, if necessary, we will allocate additional funding,” Kotin told Interfax-Ukraine during a visit to the Central Spent Nuclear Fuel Storage Facility (CSFSF).
According to him, now law enforcement agencies are working out all the necessary steps to improve safety at the nuclear power plant.
“These are organizational steps. As for additional funding, issues are resolved within the framework of security protocols that are signed with the National Guard and other relevant bodies, in particular, the SBU. Now, this work is being carried out at all nuclear power plants,” Kotin said.
Concerning the CSFSF, the head of Energoatom said that all the required protection steps are also being taken on it.
“This is a nuclear facility, and therefore it is also very vulnerable from the point of view of a terrorist attack. It is only 14 km from the border with Belarus. All necessary steps are being taken to protect it physically, there are many of them, they are sufficient. You heard that the representative of the National Guard from the unit that will guard it said that security will be ensured,” Kotin said.
National Nuclear Generating Company Energoatom plans to sign an agreement with the French operator of nuclear power plants Electricite de France SA (EDF) on cooperation in the development of nuclear energy, Head of the company Petro Kotin has said.
“Today, we are preparing a memorandum with EDF on cooperation in the development of nuclear energy in Ukraine and in the world. A lot of issues are being worked out there regarding the current operation of units, equipment modernization, personnel training, as well as the development of nuclear facilities in the future. Now we have provided them with our version of the memorandum, they are considering it,” Kotin said in a commentary to Energy Reform during a visit to the Central Spent Nuclear Fuel Storage Facility.
He said he met with Head of EDF Jean-Bernard Levy at a nuclear exhibition in Paris (November-December 2021), where it was agreed on the need to establish cooperation.
According to Kotin, it can become fruitful and profitable for both companies.
“EDF is the world’s largest operator of nuclear power plants. If we produced 86 billion kWh last year, which is the highest result in the last six years, then they produced 360 billion kWh. But we are the second in terms of electricity production in Europe, except for the Russian Federation,” the head of Energoatom said.
At the same time, he admitted that cooperation with EDF could eventually extend to the development of small modular reactors in Ukraine.
“Now this issue is dealt with by many companies, all large organizations that have expertise in this area. Some have conceptual solutions at the stage of coordination with regulatory authorities, many are still at the concept stage,” Kotin explained, adding that “the horizon for the use of small modular reactors is another six-eight years.”
As reported with reference to Deputy Head of the President’s Office Rostyslav Shurma, Ukraine plans to cooperate with French EDF, in particular, in the construction of new units of nuclear power plants (NPPs) in the country.
EDF operates more than 70 nuclear reactors, including 58 in France, and is among the world’s largest nuclear power plant operators. In addition, EDF owns stakes in generating companies in many European countries, the USA, Brazil, Chile, Mexico, China, India, and Morocco.
Westinghouse (the United States) and National Nuclear Generating Company Energoatom have signed two cooperation agreements providing for the start of projects for the construction of two new reactors at Khmelnytsky NPP using AP1000 technology.The documents were signed during the international conference Atomic Opportunities for National Development on Monday in Kyiv.As an Interfax-Ukraine correspondent reported, one of the agreements provides for the purchase of services from the U.S. company for the design of reactors, the other for the purchase of a simulator and equipment with a long service life.According to Petro Kotin, Acting President of Energoatom, the purchase of the simulator in advance will make it possible to train personnel long before the reactors are put into operation.”AR 1000 is a new technology for us. Right now we need to start training inspectors so that they can then start training personnel. We don’t want to waste time on this later, so we buy the simulator first of all,” Kotin said.In addition, the agreement provides for advance financing of equipment that has a long manufacturing cycle.”This is done in order not to delay construction. Some equipment has been manufactured for about three years,” the head of Energoatom explained.Kotin added that the agreements with Westinghouse also provide for the preparation of pilot projects for the construction of reactors, in particular, the preparation of infrastructure and testing of the site where they will be located.In turn, as Minister of Energy Herman Haluschenko said, the agreements signed with Westinghouse are extremely important, since the AP 1000 reactors are unlicensed in Ukraine.”I would not like the licensing issue to drag on. And this is a huge work, it is necessary to process a colossal array of documents. Therefore, we do everything as quickly as possible. And we received assurances from the U.S. side of their as much as possible assistance,” Haluschenko said.As reported, within the framework of the September visit of the President of Ukraine to the United States, Energoatom and U.S. Westinghouse Electric signed a memorandum on the construction of a total of five reactors in Ukraine. The cost of the project will be about $25 billion.
