ORLEN’s successful bid on the Synthos Green Energy deal represents a tremendous first step. This partnership is going to lead to Poland’s first-ever small modular reactor (SMR) nuclear power plant. This historic undertaking will be carried out by way of a newly established joint venture ORLEN Synthos Green Energy (OSGE). The project marks a pivotal step in Poland’s energy landscape, aiming to enhance the country’s energy security and sustainability.
Their cooperation led to several crucial amendments to the articles of association and shareholder agreement. These amendments create a much clearer legislative foundation for the joint venture. OSGE has now formally selected Włocławek in Poland as the destination for the first BWRX-300 reactor. If successful, this will be the first such reactor in Europe. ORLEN has ambitious plans, targeting the launch of at least two SMR units with a combined capacity of 0.6 GW by 2035.
Joint Venture Structure and Governance
The agreement comprises two primary components: a joint venture agreement and a licensing agreement. According to the joint venture agreement, ORLEN and Synthos Green Energy will each receive a 50% equity stake in OSGE. This complicated structure creates an unusual dynamic of shared rights, while still allowing ORLEN to control key strategic decisions affecting the joint venture.
To promote good ongoing management, we have formed a project steering committee. This committee will be responsible for implementing the settlement and will handle day-to-day operations relating to OSGE. The shared framework is intended to provide consistency in how decisions are made while improving the efficiency of project delivery.
“Poland will host the first BWRX-300 small modular reactor in Europe. We are building the energy system of tomorrow. This reflects the essence of decision by the ORLEN Group Supervisory Board, which approved the agreement. We spent over a year negotiating terms that safeguard ORLEN’s interests, securing for our joint venture with Synthos direct access to US SMR technology that will enable the project’s delivery.” – ORLEN management board president Ireneusz Fąfara
Access to Advanced Technology
The licensing agreement between ORLEN and Synthos Green Energy gives OSGE comprehensive access to the BWRX-300 reactor technology. This access provides OSGE with extensive capacities that are key to the successful realization of Poland’s first SMR nuclear power plant. The deployment of US SMR technology is intended to improve safety, efficiency, and operational performance in the generation of nuclear energy.
In June, ORLEN finalized 1.7 billion zlotys (approx. $460 million) in grants from Poland’s National Recovery Plan (NRP). This funding is exclusively reserved for their Green H2 and Hydrogen Eagle hydrogen projects. Together with ORLEN’s own contribution, this funding strengthens ORLEN’s focus on green energy projects and puts the company in pole position in the rapidly changing energy sector.
Future Prospects and Commitments
The now-established joint venture is to produce Poland’s first SMR nuclear power plant. This will further strengthen cooperation between ORLEN and SGE. The governance structure of OSGE gives itself the flexibility to rotate appointments every three years. This strategy creates active stewardship and encourages investment and interest on both sides.
Poland is both a European and global leader in efforts to diversify its coal-dependent energy sources and reduce harmful, carbon-based energy emissions. This collaborative program is central to the country’s national energy transition plan. Both companies share a commitment to innovation and sustainability. ORLEN Synthos Green Energy is well-positioned to set a precedent for future energy projects in Poland and across Europe.