Exclusive Poland invites KEPCO, Doosan

Polish Ambassador to Korea Krzysztof Majka

By Kim Se-jeong

Coal-rich Poland is pursuing a nuclear energy program, and its envoy is inviting Korean companies to bid for the construction contracts of two nuclear power plants, which will begin operating as early as 2022.

Speaking with The Korea Times, Thursday, Ambassador Krzysztof Majka said, “Poland invites potential bidders for building nuclear power stations to come to Poland. Korea is a leading producer of complete nuclear facilities.”

Two sites for 3,000-megawatt plants will be finalized soon, and by the end of this year, a commercial contract for the first plant will be signed. “This should be an area of prime interest for KEPCO, Doosan and other companies,” he added.

Korea’s sale of nuclear power plant construction technology to the UAE in 2009 earned the nation recognition as an exporter of such. Yet, domestically, the industry is losing credibility due to lax security practices.

Poland runs on coal. The biggest producer of coal in the EU, Poland generates nearly 90 percent of its electricity by burning it. The current move toward nuclear energy is the country’s effort to improve energy efficiency and security in order to create competitive electricity markets, and limit the negative impact of coal on its ambitious European Union environmental standards.

The country’s mid-term energy policy projects that by the year 2030 the country will replace coal with gas and nuclear energy.

The nuclear energy project is making progress.

Last year, the parliament passed a nuclear energy law placing regulatory measures for investors.

Two sites will be selected soon, and construction will begin. In the meantime, a special envoy for nuclear energy, a new position under the ministry of economy, has traveled around the world, trying to cultivate a network to bring home the best affordable technology possible. Hanna Trojanowska was in Seoul as well during the Seoul Nuclear Security Summit last year, meeting with representatives from the Korean private sector.

The ambassador said the general public has reacted positively, despite tragic accidents in Fukushima and Chernobyl. People are rather happy at the prospect of new jobs vital for growth of the Polish economy amid the continuing EU economic crisis.

What also excites the Poles is shale gas.

Shale gas is natural gas trapped within shale formations. Interest in it is growing due to rising gas prices, which has prompted advances in shale gas drilling technology. The main producer of shale gas is the United States, which has by far the most advanced technology.

The United States Energy Information Administration initially estimated that Poland had 5.3 trillion cubic meters of accessible shale gas reserves, among the largest ever discovered. However, this was later revised by the Polish Geological Institute to a considerably more conservative 1.9 trillion cubic meters.

However, the reserve is still of long term value and as the ambassador indicated, “Poland can’t afford to ignore” shale gas because of Poland’s energy dependence on Russia. Foreign Minister Radek Sikorski was also quoted as saying, “Exploration of our own resources is our chance and obligation. Shale gas is a chance to limit Poland’s and Europe’s dependence on imports.”

Shale gas is expected to liberate Poland from dependence on Russian gas, which now accounts for nearly 80 percent of its supply. Europe as a whole depends on Russia for a quarter of its gas demand.

“The heavy reliance on external supplies of gas and oil from Russia creates a potential threat to the security of the nation’s energy supply. That is the reason for the big interest of the Polish government in shale gas.”

Worldwide, the situation is much similar.

United States and China are the two big rising investors, followed by Argentina, Mexico and Australia. The abundant reserves found in the Unites States will reduce its interest in the Middle East, making the region less politically volatile.

Poland hasn’t wasted any time in exploring for shale gas. It has attracted 38 companies, including Chevron, Marathon Oil and Conoco Philips.

No Korean company has yet shown any interest.

“Korean companies are investing in shale gas reserves abroad. Why not Poland?” he said encouraging Korean firms to take part.

Last year, Korea National Oil Corp. spent $1.55 billion on a shale gas project in Texas. KOGAS is also exploring a potential deposit in Canada.

Ambassador Majka used to work in the energy field before joining the Polish foreign ministry. He was an expert in enhancing the energy efficiency of coal, giving lectures at a technology university in Poland.