Siemens and the Russian State Atomic Energy Corporation Rosatom signed a Memorandum of Understanding on the creation of a joint venture in the field of nuclear energy. The joint venture plans to push ahead with further development of Russian pressurized water reactor (VVER) technology.
VVER is the Russian designation for light water pressurized reactor. In western countries, the acronym is PWR. These are a different type than the light-water cooled, graphite-moderated reactor (LGR) that was at Chernobyl. According to the US Energy Information Administration, the new VVER units conform to international standards and have developed an export market.
The Siemens-Rosatom joint venture would also handle marketing and sales, and the construction of new nuclear power plants as well as modernization and upgrades of existing plants. The joint venture may take up business opportunities along the entire nuclear conversion chain from fuel fabrication to decommissioning of nuclear power plants.
In a next step, the parties will negotiate the terms and conditions of the cooperation, with Rosatom holding the majority stake of 50% plus one share in the joint venture. Rosatom is the world’s only company covering the whole nuclear value-added chain including the operation of nuclear power plants. Siemens has accumulated comprehensive know-how in the conventional island of nuclear power plants and experience in project management for the construction of large installations.
By 2030, it is forecast that there will be approximately 400 new nuclear power plants around the globe, representing a total investment of more than €1,000 billion (US$1,300 billion).