Korea Has Some Hurdles to Clear to Export Nuclear Power Plants

On June 27, Korea Hydro & Nuclear Power (KHNP) signed a 260 billion won (US$197 million) contract with Romania’s SNN to build a tritium removal facility (TRF), marking the second instance of nuclear equipment export under the Yoon Suk-yeol administration. While the country’s nuclear power plant exports, which are expected to reach 5 trillion won by 2027, got off to a good start, no high-profile Korean nuclear power plant export contracts have been signed since the current government was inaugurated.

According to the Ministry of Trade, Industry and Energy and Korea Hydro and Nuclear Power (KHNP) on June 28, the closest it has come to exporting is the Patnow Project in Poland. It is a private sector-oriented project to build two APR1400 units at the site of Patnow Thermal Power Plant. In October 2022, a letter of intent (LOI) was signed among KHNP of Korea and PGE and ZE PAK of Poland to develop a joint project. The project is now underway.

Currently, a working-level discussion is being held between KHNP and Poland for a feasibility study contract. “We want to sign the main agreement quickly,” PGE President Wojciech Dąbrowski said in an international event in Gyeongju, Korea in April.

The Korean government is paying a lot of attention to the construction of a new nuclear power plant in Dukovany, the Czech Republic. The Czech side is planning to build one sub-1,200 MW new nuclear power plant (Dukovany Unit 5) with a total project cost of 9 trillion won. In the competitive bidding process, KEPCO submitted its first bid in November 2022 and is having a three-way race with Westinghouse and EDF. After the evaluation is completed in 2023, a preferred bidder will be selected and the contract will be signed. Until then, the three will have fierce competition.

Also, KEPCO submitted a preliminary proposal for a nuclear power plant construction project to the Turkiye government in January. A discussion is underway to build four APR1400 units in the northern region of Turkiye. If an agreement is reached through a joint feasibility study next year, the project will begin in earnest with a memorandum of understanding (MOU).

The possibility of exporting a nuclear power plant to Romania cannot be completely ruled out. “Considering many factors, such as technology and regions, it is possible that KEPCO will participate in the construction of a nuclear power plant in Romania later,” said SNN chief Cosmin Ghita of Romania on June 27, referring to the resumption of the construction of Chernaboda Units 3-4.

Although Korea’s nuclear power plant exports have been stymied by the Moon Jae-in administration’s nuclear phase-out policy, Korea has strong export competitiveness thanks to its excellent technology, price competitiveness, and solid nuclear ecosystem, including the completion of a nuclear power plant in time. It also has a wealth of experience, such as the Barakah Nuclear Power Plant in the UAE. Overseas clients also point to these as Korea’s strengths in nuclear power plant construction.

However, variables are still facing Korea. Nuclear power plant exports are not just a competition between companies, but involve a lot of diplomacy behind the scenes. While the Korean government is pulling out all the stops to help Korean companies export nuclear power plants, there are still countries like the United States that may intervene in Korea’s nuclear power plant exports, especially to Eastern Europe.

Also burdensome is a protracted intellectual property lawsuit that Westinghouse filed in a U.S. court last year to block Korean companies’ export of Korean-type nuclear reactors. The lawsuit is a way to keep its rival KEPCO in check, analysts say. “The Westinghouse lawsuit is putting the brake on progress in Korean companies’ nuclear power plant exports,” said a Korean nuclear power industry official who requested anonymity. “It is more urgent for the Korean nuclear power industry to address this issue than anything else.”