Framatome to Supply Nuclear Fuel for Hungary's Paks VVER Reactors

Framatome to Supply Nuclear Fuel for Hungary's Paks VVER Reactors
by Erica Marchand
Paris, France (SPX) Oct 28, 2024

Framatome and Hungary's MVM Paks Nuclear Power Plant Ltd. have signed a significant contract to supply nuclear fuel to the Hungarian Paks VVER reactors starting in 2027. This contract, which enhances Hungary's fuel supply diversity, follows a Memorandum of Understanding signed in September 2023 between Hungary's Ministry of Energy and Framatome.

"MVM Paks Nuclear Power Plant has been producing cheap, clean and safe electricity for the country for more than 40 years. Under all circumstances, we could count on the stable operation of the Paks Nuclear Power Plant and the expertise of its employees, with which they contributed to the maintenance of the of power prices in the international energy crisis. The nuclear power plant, which provides half of the domestic electricity production and covers 36 percent of the inland consumption, plays an indispensable role in ensuring the security of electricity supply to Hungarian families and enterprises, and in fulfilling climate commitments. With this agreement, we will extend energy diversification to nuclear production, and with this responsible decision we will further strengthen the energy sovereignty of our country," said Energy Minister Csaba Lantos.

This agreement further strengthens the established partnership between Framatome and Hungary in the nuclear energy sector. Framatome, with over 18,000 employees and 65 years of nuclear expertise, operates in Hungary through its subsidiary Framatome Kft, which provides direct support to Hungarian clients.

"Framatome is strongly committed to supporting Hungary's nuclear industry and energy policy and we are pleased to contribute to the diversification of the fuel supply for Paks," stated Bernard Fontana, CEO of Framatome. "This first fuel contract for the Hungarian VVER reactors bears witness to the trust they have in our expertise and solutions."

Peter Horvath, CEO of MVM Paks Nuclear Power Plant, emphasized the strategic importance of the contract, saying, "The strategic objectives of the MVM Group cannot be achieved without the extension of the operating time of the Paks Nuclear Power Plant. The continuous development of the nuclear power plant is crucial for long-term and predictable operation. With this agreement, the first supplier contract has been concluded that extends beyond the duration of the extended operating time extension already implemented. It will provide us fuel for the production of environmentally friendly, clean electricity, which means stability and affordable prices for households and corporations."

Framatome's approach to meet the demand for alternative nuclear fuel includes a dual strategy that mitigates risks while ensuring a stable fuel supply for European Union VVER reactors. In the near term, Framatome will produce fuel similar to the current designs used by European VVER reactors, while also developing and certifying European-designed fuel for VVER 440 and 1000 reactors. The European Union currently operates 19 VVER reactors, including four 1,000 MW units in Bulgaria and the Czech Republic and fifteen 440 MW units across the Czech Republic, Finland, Hungary, and Slovakia.

"Hungary can count on Framatome to provide a safe and robust alternative fuel solution for its VVER reactors," said Lionel Gaiffe, senior executive vice president of Framatome's Fuel Business Unit. "For the past number of years, we have been developing a solution to support both the short and mid-term fuel diversification needs of VVER nuclear operators in the European Union. In the mid-term, Framatome is the only fuel supplier able to guarantee a sovereign European solution, with a fully European design, manufacturing and component supply chain."

The Paks Nuclear Power Plant, located south of Budapest, operates four VVER-440 reactors that began operation between 1982 and 1987.