Framatome and MVM Paks Nuclear Power Plant Ltd have signed a contract for the long-term supply of nuclear fuel to Hungary’s Paks VVER reactors from 2027. The contract ensuring the fuel supply diversification of Hungary is based on a memorandum of understanding signed by Hungary’s Ministry of Energy and Framatome in September 2023.
The Paks NPP comprises four VVER-440 power units, which currently provide half of all generated and one third of the consumed electricity in Hungary. Two larger VVER-1200 units are under construction by Rosatom as the Paks-II extension project.
“MVM Paks Nuclear Power plant has been producing cheap, clean and safe electricity for the country for more than 40 years,” said Energy Minister Csaba Lantos. Under all circumstances, we are able to count on the stable operation of the Paks NPP to contribute to the maintenance of energy prices despite the international energy crisis. The NPP, which provides half of the domestic electricity production and covers 36% of domestic 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.”
The contract builds upon longstanding cooperation between Hungary and Framatome. With more than 18,000 employees and over 65 years of expertise, Framatome is present in Hungary through its subsidiary Framatome Kft. “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.”
Framatome has also recently signed fuel supply agreements with other NPPs in the region seeking to reduce dependence on Russia. However, last year, Framatome set up a joint venture with Russia’s TVEL to supply fuel for VVER reactors. The joint venture, European Hexagonal Fuel SAS, will operate on the basis of a Russian licence. Its capitalisation is reported to be $8m ($8.8m) The fuel will be produced at Framatome’s plant in Germany in Lingen provided the necessary German permits are obtained. János Péter Horváth, CEO of the MVM Paks NPP, said that while production is based on a French-Russian partnership, the seller will be Framatome alone. The fuel will be identical to Rosatom’s supplies and will not require new technical or legal approval from security regulators, the company said. In parallel, Framatome is also developing and qualifying European sovereign fuels of its own design for VVER 440 and 1000 reactors. However, this does not include fuel for the new VVER-1200 reactors under construction at Paks.
“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.”
Attila Steiner, Hungary’s State Secretary for Energy Policy, told a press conference in Budapest that the agreement, signed by Framatome and MVM Paks, “an important step” from the perspective of supply security. He added that Paks had built up a significant strategic inventory of fuel rods in recent years.
