Framatome to supply Hungarian plant with nuclear fuel

France's Framatome has signed a contract for the long-term supply of fuel to the four VVER-440 reactors in operation at Hungary's Paks nuclear power plant, starting from 2027.

The fuel supply contract is based on a memorandum of understanding (MoU) signed by the Ministry of Energy of Hungary and Framatome in September 2023 for the development of a strategic relationship in the nuclear field. That MoU - which builds upon a long-standing relationship and cooperation between Hungary and Framatome - laid the foundation to facilitate the extension of the cooperation between Framatome and Hungary in various domains of interest in nuclear. These include education and competencies, R&D, the implementation of new technologies, fuel supply and related nuclear materials, as well as long-term operation.

"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," said Framatome CEO Bernard Fontana. "This first fuel contract for the Hungarian VVER reactors bears witness to the trust they have in our expertise and solutions."

“The strategic objectives of the MVM Group cannot be achieved without the extension of the operating time of the Paks nuclear power plant," said Péter Horvath, CEO of MVM Paks NPP. "The continuous development of the nuclear power plant is crucial for long-term and predictable operation.

"With today's 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."

Hungary's Energy Minister, Csaba Lantos, added: "The nuclear power plant, which provides half of the domestic electricity production and covers 36% 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."

In recent years, especially since the war with Ukraine began, nuclear power operators in EU countries who had previously relied on Russian-supplied fuel have sought alternative suppliers.

Nineteen VVER reactors - developed during the time of the Soviet Union and historically reliant on Russian fuel supplies - are currently in operation in the EU, including four VVER-1000 reactors in Bulgaria and the Czech Republic, and 15 VVER-440 reactors in the Czech Republic, Finland, Hungary and Slovakia.

Framatome said it has "a dual-track approach" to supplying fuel to VVER reactors in operation in the European Union. In the short term, it will fabricate fuel identical to the proven design currently used by the reactors. In parallel, Framatome is developing and qualifying European sovereign fuels of its own design for VVER 440 and 1000 reactors.

In June this year, Framatome was awarded a EUR10 million (USD10.7 million) contribution from the EU under the Euratom Research and Training Programme for development and deployment of a European fuel solution for VVER reactors. The SAVE (Safe and Alternative VVER European) project for VVER-440 fuel led by Framatome brings together 17 stakeholders, including utilities operating VVER reactors in the EU.

The project follows the Westinghouse-led Accelerated Program for Implementation of Secure VVER Fuel Supply (APIS) project launched in July 2023 to develop safe fuel designs for VVER-440 and next generation fuel designs for VVER-1000 reactors.

"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 the Fuel Business Unit at Framatome. "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."