The first of Poland’s planned nuclear power plants will be built late, while work on the second is frozen. This disturbing information comes from the Polish government.
“Regarding this plant, the Polish Nuclear Power Plants company (PKN) was working to narrow down the list of potential locations. This work was suspended a year ago for reasons that are unclear to me. Currently, the work has been unfrozen,” said Maciej Bando, Deputy Minister of Climate and Environment.
He added: “(…) the ideal solution would be to locate the second nuclear power plant near the existing coal-fired power plants, which will soon be phasing out their technical life.”
The Polish Nuclear Power Program (PPEJ) envisages the construction of a total of 6-9 gigawatts of power in so-called large nuclear power plants. Six nuclear units are to be built, commissioned every 2-3 years from 2033. The construction of modular nuclear reactors (SMRs) is also planned.
That’s the theory.
Initial work is underway in the Choczewo Commune, where the first nuclear power plant is to be built. However, it is already known that the first Polish reactor will not be built until 2033, as planned.
When at the earliest?
The word is already 2035 or 2036. The power plant is to be built by Americans.
The second power plant, as planned by the PiS government, would be built near Bełchatów. A lignite-fired power plant will operate there until 2036.
The problem is that so far… there has been no decision on building a second power plant. As the minister says, much to the criticism of experts, we must wait until the demand reported by the Polish Power Grids is revealed.
The problem is that time is running out. On the one hand, we should be closing coal-fired power plants, but on the other, we have nothing to replace the potential breach in the system.
For this reason, the ministry is being criticized for working too slowly in the context of updating strategic documents. This update was supposed to be released mid-year, but it has yet to arrive.
Meanwhile, the ministry is boasting about the visit of Polish representatives to the US regarding small nuclear reactors (SMRs).
Nearly 30 Polish companies met in Washington and Pittsburgh/Cranberry with key American companies and technology suppliers in the nuclear sector: Westinghouse and Bechtel, GE Hitachi Nuclear Energy, and Curtiss-Wright EMD, as well as several dozen companies associated with the Nuclear Energy Institute.
The mission was organized by the Polish Chamber of Commerce for Energy and Environmental Protection, together with its American counterpart, the Nuclear Energy Institute, with the support of the Department of Nuclear Energy of the Ministry of Climate and Environment, the Polish Embassy in Washington, the United States Embassy in Warsaw, and the US Department of Energy.
Between June 24 and 27, the delegation participated in numerous meetings with suppliers of nuclear technology, both large-scale and small-scale reactors (SMRs), engineering companies, construction and assembly companies, and manufacturers of specific components for the nuclear sector. The primary goal of the mission was to promote Polish companies’ positioning relative to their American counterparts in the context of the Polish nuclear energy program, as well as contracts in the US and in third-country markets. To date, more than a dozen cases of Polish companies fulfilling contracts, primarily for the production of specific components, ultimately commissioned by US nuclear power plants. Such collaborations (between Polish and US entities) have also been reported in Europe.
The Polish government views the nuclear power plant project as an opportunity for the development and expansion of Polish industry, both through participation in Polish projects and by entering global supply chains for the nuclear industry. As part of the “Polish Nuclear Energy Program,” the first power plant using American AP1000 technology will be built by a consortium of Westinghouse and Bechtel at the Lubiatowo-Kopalino site in Pomerania.
To date, nearly 100 Polish companies have been involved in nuclear projects worldwide.
The problem is that Orlen states that building SMRs by 2030 will be a significant challenge, while another Polish giant, KGHM, is significantly cooling down its announcements on the matter.
What’s next for Poland’s nuclear power? If the ministry doesn’t speed up work on the documents in the next decade, we will have to import electricity to our power outlets.
Jarosław Adamski
In recent months, discussions on the new European Union Methane Regulation have been heating up on mining forums. The regulations, aimed at reducing methane emissions from the energy sector, including coal mines, have generated considerable interest from both experts and politicians. They are also raising numerous concerns, particularly in the context of their impact on Polish mining.
On June 13, 2024, the European Parliament passed Regulation No. 2024/1787, a key regulation for the energy sector, which aims to significantly reduce methane emissions. This is part of the European Union’s broader strategy to combat the climate crisis. Methane, as one of the most potent greenhouse gases, has a significant impact on global warming. The new regulations cover, among others, the hard coal mining sector, sparking heated debate about the future of this industry and the challenges facing mining companies. The regulation also has wide-ranging implications for energy importers to the EU, which experts believe will be crucial for effectively reducing global methane emissions. Coking coal, a key raw material, has been exempted from emission restrictions for the time being, which is important for Jastrzębska Spółka Węglowa. But not everyone is happy with this. Ember, an organization that analyzes climate policy, believes that delays in establishing methane emission limits for coking coal mines could hinder the achievement of EU climate goals.
The regulation’s main goal is to reduce methane emissions in the energy sector, which is intended to contribute to achieving the EU’s climate goals. The document introduces mandatory monitoring, reporting, and verification of methane emissions by energy companies, including hard coal mines, both operating and closed. From 2027, emissions from coal mine ventilation shafts will not exceed 5 tons of methane per kiloton of coal extracted, and from 2031, this threshold will be lowered to 3 tons. The regulation introduces a requirement for systematic methane emission measurements, which must be performed at all emission sources, such as ventilation shafts and methane drainage stations.
The new regulations, however, cover not only emissions from active mines but also those that have been closed and decommissioned. For closed mines, the obligation extends to monitoring emissions up to 70 years after the end of operations. This means that methane emissions will also have to be monitored in abandoned mines that were closed many years ago. In practice, this means that mining companies and other entities responsible for former mine sites will be required to monitor and report methane emissions from these facilities. The scope of the regulations is broad and covers both point emissions and diffuse emissions, such as from mine dumps and methane drainage stations. The regulation also envisages significant changes in the organization of the emission measurement process. Companies will be required to implement advanced monitoring systems that will enable precise tracking of emission levels and regular reporting of results to the relevant authorities.
Anna Moskwa, Minister of Climate and Environment, emphasized during negotiations in Brussels that Poland had succeeded in relaxing the original provisions of the regulation: “We maintained the emission thresholds agreed with the Polish mining sector, which were ten times higher than in the European Commission’s original proposal. Thanks to the regulations negotiated by Poland, it will be possible to reduce methane emissions in mines through a mechanism for converting fines into fees and creating a support program for Polish mines.” However, implementing the new regulations poses a real challenge for mining companies. It requires investment in modern measurement technologies and the implementation of advanced methane emission monitoring systems. From an economic perspective, companies’ financial willingness to bear these costs may be problematic. It’s important to remember that companies that fail to comply with the new regulations may face financial penalties. According to the regulation, fines for violating standards can be up to 20% of annual turnover. This applies not only to non-compliance with emission standards but also to improper data reporting.
The introduction of the regulation means that mining companies must now plan long-term strategies for adapting to the new requirements, which will inevitably impact the profitability of operations in this sector.
Sylwia Jarosławska
On July 25, 2024, the EU Corporate Sustainability Due Diligence Directive (CS3D) entered into force. Its goal is to promote responsible corporate behavior, particularly in the context of human rights and environmental protection. The directive requires European companies to conduct due diligence, which is an assessment of the impact of their operations and the operations of their business partners and subsidiaries on their social and environmental environments. Due diligence is the process of thoroughly assessing and verifying information about a company or project before making key decisions such as investments, mergers, acquisitions, or partnerships. Such analysis helps make informed investment decisions based on reliable data and minimize transaction risks. For companies in the mining industry, which have a significant impact on the natural environment and local communities, the implementation of this directive means significant changes.
The new CS3D Directive is part of the European Green Deal and, together with other regulatory initiatives such as the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy Regulation, represents another step towards sustainable business under a single European framework. The common denominator of all these regulations is increased corporate responsibility and transparency in the management of ESG issues: environmental, social, and governance.
In practice, this means that companies must consider their impact on communities and the environment throughout their supply chain and business operations, which is intended to lead to more sustainable economic development. Large companies will be required to develop due diligence procedures to counteract the negative impacts of their activities on human rights and the environment, including throughout their global operations. The goal is to counter the most harmful forms of corporate behavior and to mainstream sustainability into business operations and corporate governance.
The CS3D Directive will be implemented gradually, initially covering large companies with more than 5,000 employees and annual net revenues exceeding €15 billion, and in subsequent years, smaller companies as well. Its scope covers various economic sectors, including mining companies. This sector may be particularly affected by the new regulations due to its direct impact on the environment and local communities. Mining companies will be required to conduct more detailed impact analyses, implement transformation plans, and regularly report on the results of these actions.
The CS3D provides for sanctions for non-compliance, including fines of up to 5% of annual net revenue. For the mining industry, which often operates in locations with fragile ecosystems, this could mean significant operating costs associated with meeting the new obligations. The industry is primarily concerned about the costs of implementing these new regulations. As Patrick Pouyanné, CEO of TotalEnergies, said, “This directive requires us to take a more rigorous approach to assessing the environmental impact of our operations, which is crucial given our global presence in the raw materials extraction sectors. The effectiveness of this approach will depend on collaboration with our supply chain partners.” Another representative of a large European mining company, who preferred to remain anonymous, admitted: “The costs associated with complying with CS3D could be enormous, especially for companies with complex, international supply chains. This will impact not only current expenses but also the long-term profitability of mining operations.” These voices indicate that although the CS3D Directive aims to promote sustainable development, it may pose significant financial and operational challenges for the mining sector.
But there is also a positive side. The CS3D Directive may force mining companies to invest more in technologies that reduce the negative impact of their operations on the environment, potentially impacting the profitability and competitiveness of some entities. At the same time, the new regulations could bring long-term benefits, for example, through greater transparency in reporting and a more responsible approach to environmental and social risk management.
ESG experts point out that early implementation of CS3D-compliant mechanisms is beneficial for companies, even though the full requirements will not come into force for several years. The CS3D Directive aims not only to improve sustainability practices but also to introduce tools that will allow companies to effectively manage their impact on the environment and communities. These tools will be particularly important for high-impact industries, such as mining, which should prepare for the upcoming changes now.
Sylwia Jarosławska
