Energoatom signs deal with Westinghouse on nuclear units supply

Top managers of Ukraine nuclear power plants operator
Energoatom and U.S.-based Westinghouse Electric Company signed an agreement to
bring AP1000 technology nuclear reactors to Ukraine. The deal was signed in the
presence of Ukraine’s President Volodymyr Zelensky, Energy Minister Herman
Halushchenko, and U.S. Secretary of Energy Jennifer Granholm. Westinghouse
calls the deal an “exclusive agreement”, while Energoatom calls it a memorandum
on cooperation. According to Energoatom, the deal foresees the participation of
Westinghouse in the construction of power unit #4 at Khmelnitsk NPP and “four
more power units at other power plants.” The company estimates the total value
of the project at USD 30 bln. According to Energoatom, AP1000 technology
enables the power unit to operate in maneuverable mode.

Alexander Paraschiy:
Westinghouse’s AP1000 reactors were in the epicenter of the Nukegate scandal in
2017, which was a result of construction issues in South Carolina. However,
according to Westinghouse, four AP1000 reactors have been setting performance
records in China, which allows them to claim that the design itself is proven.

As the average age of the existing 15 nuclear power
units of Energoatom is now 33 years, the question of their gradual replacement
is becoming increasingly relevant in the near future. The key drawback of all
the existing power units of Energoatom is that they are only operating in
baseload mode, which limits their use. So, new units which would be able to
operate in changeable mode will allow the company to improve output
flexibility, and therefore, increase capacity load in the future. Therefore,
deeper cooperation with Westinghouse looks like a step in the right direction,
but a key question for future nuclear projects is the availability of sources
of their financing (thus far, Energoatom has no secured sources).

We treat the signed agreement, as well as the
announced large size of the possible project, as a part of Zelensky’s PR
campaign during his visit to the U.S., and expect more loud statements from his
side these days.