Last week, Hunatom, Hungary’s nuclear energy development firm, and Synthos Green Energy, a private project developer in Poland, signed a letter of intent to support the construction of up to ten BWRX-300 small modular reactors (SMRs).
The BWRX-300, designed by the US company GE Vernova, has a capacity of 300 megawatts. This agreement marks a pivotal moment for nuclear energy development in Central and Eastern Europe, with Hungary joining Poland and Estonia in plans to deploy these reactors.
This collaboration not only aims to enhance the region’s energy production capabilities but also drives significant geopolitical implications. For one, it could facilitate the European Union’s increased expenditure on energy imports from the United States, aligning with the terms of a recent trade agreement struck with President Donald Trump.
Alongside this economic aspect, the agreement may signal a strengthening bond between Hungary and the United States, potentially fortifying transatlantic unity against the influence of Vladimir Putin’s Russia.
Historically, Hungary has been reluctant to embrace US nuclear energy technologies. Despite its EU membership, the country has increasingly aligned itself with Russia in recent years. Yet, this new civil nuclear cooperation with the US could represent a meaningful policy shift, indicating Hungary’s desire to pivot away from Russia, leaning towards closer ties with the EU and the US.
The formation of nuclear energy partnerships typically establishes a one-hundred-year relationship. This encompasses a decade for constructing the reactors, eighty years for their operational life, and a further decade dedicated to decommissioning.
The timing of Hungary’s announcement regarding the SMRs coincided with the US-EU trade agreement, which involves a significant commitment from the EU to purchase $750 billion in US oil and gas by the end of Trump’s presidential term.
This trade deal also underlines essential US energy technology investments, particularly in the nuclear sector. While experts have raised skepticism regarding the EU’s ability to fulfill the $750 billion purchase from the US, Hungary’s interest in acquiring ten GE reactors represents a meaningful stride towards realizing the EU’s trade aspiration.
Despite this potential shift, Hungary continues to maintain a civil nuclear partnership with Russia. Currently, Hungary operates four VVER-440 reactors at its Paks nuclear power plant, which utilize Russian-origin technology and supply nearly half of the nation’s electricity.
Construction has also recently commenced on two VVER-1200 reactors at the Paks II site. Hungary’s plans for these reactors have led to contention with other EU member states, including Germany and Austria. In contrast, the Trump administration has lifted previous US sanctions related to upgrades at the Paks nuclear power plant.
Hungary’s ongoing reliance on Russian nuclear technologies might suggest a cautious approach, as the country seeks to navigate the balancing act between its EU affiliations and Russian influence.
The US government has indicated its readiness to enhance collaboration with Hungary across various sectors beyond nuclear energy, including defense, commerce, space, and alternative energy sources. These initiatives are expected to build upon the recent nuclear energy deal, which may facilitate Hungary’s efforts to strengthen its ties with the US and gradually diminish Russian influence.
Ultimately, the implications of this letter of intent remain uncertain. Whether it indicates a genuine desire from Hungary to foster a closer relationship with the United States, while simultaneously moving away from Russian energy dependency, remains to be seen.
What is clear, however, is that this announcement marks a significant step towards fostering closer relations between Hungary, Poland, and the broader EU community.
image source from：atlanticcouncil
