Business news from Ukraine

“Energoatom” and Westinghouse started construction of KNPP-5 and KNPP-6 using AR1000 technology

NAEK Energoatom and the American company Westinghouse started the project of KNPP-5 and KNPP-6 construction using AR1000 technology.
The project launch ceremony was held on April 11 at the Khmelnytsky nuclear plant site with the participation of U.S. Ambassador to Ukraine Bridget Brink and Ukrainian Energy Minister German Galushchenko (information is delayed for security reasons).
As Energoatom Acting Chairman Petro Kotin noted at the ceremony, the AR1000 is a proven Reactor III with unique fully passive safety systems, modular standard design, industry-leading performance and maneuverability.
“It is a more advanced and safer technology than the ones we currently operate. It is a new step towards a more modern, reliable and safe energy industry. And it is in Ukraine that Europe’s first power unit based on AR1000 technology will be built. It will be KNPP-5,” Kotin said.
“We are proud that we will join the history that Ukraine is making in the energy sector. We can already say that our cooperation is the wedding of the year,” Patrick Fragman, President and CEO of Westinghouse Electric Company, pointed out.
He emphasized that it is an improved technology with increased efficiency, and the unit itself is compact and lower cost compared to others.
“Here at the KNPP site, we note that the heavy equipment, which takes the longest to manufacture, is now ready, and this will significantly accelerate the construction schedule. Thanks to the assistance of the US government and the fact that the main agreements have been signed, it will be even faster,” he emphasized.
Fragman added that the AR1000 reactor is designed to operate for 60 years, but he said it is likely to be longer.
“These units provide a balancing act. This is a special feature of the American AR1000 technology. Now Russian aggressors are destroying Ukraine’s balancing capacity, and if we already had such a nuclear power unit, we could maneuver it and accordingly perform important functions for the energy system,” Galushchenko stressed.
“This is a project for the next long years. The US is set for fruitful cooperation with Ukraine… We are trying together with the US Congress to support you not only within the framework of armed aggression, but also economically,” Brink emphasized.
As for the sources of financing the project, according to Kotin, the company could provide it on its own, as it has large profits, but the lion’s share of them goes to cover the tariff for electricity for the population (PEP).
“Energoatom spent 128 billion UAH of net profit on the PCO in the previous year. If the company is exempted from the PCO, we will have $3 bln of profit for which we can build the unit. If not, we are talking about loans,” Kotin told reporters after the ceremony.
He added that the construction period of one block is tentatively 4-5 years, and its cost is about $5 billion.
As reported, on December 17, 2023 in Kiev, the head of Energoatom Petro Kotin and Westinghouse CEO Patrick Fragman signed a contract for the purchase of a reactor unit for Ukraine’s first nuclear power unit based on AP1000 technology.

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