Team Korea Defeats France with Technology and Trust: "Nuclear Power Export Powerhouse, Just the Beginning"

Korea Hydro & Nuclear Power Selects Duko Bani as Preferred Negotiation Partner for 2 Nuclear Reactors
Final Contract Scheduled Around March Next Year
Government "2050 Roadmap... Advancing Nuclear Power Strategy"

South Korea has secured a new nuclear power plant project in the Czech Republic worth '24 trillion won + α'. This is a remarkable achievement 15 years after winning the UAE nuclear power plant project in 2009. Using the weapon of 'on-time within budget' construction with a fixed budget, South Korea defeated France, a nuclear power powerhouse, on its home turf in Europe. This is seen as not only showcasing the competitiveness of Korean nuclear power but also establishing a solid foothold for future entry into the European market.

On the 18th, An Deok-geun, Minister of Trade, Industry and Energy, held a briefing at the Government Complex Sejong and said, "At around 9 p.m. on the 17th (Korean time), the Czech government announced that Korea Hydro & Nuclear Power (KHNP) was selected as the preferred bidder for the new nuclear power plant construction project," adding, "The essential technological capabilities, international trust, and industrial competitiveness of the nuclear industry are the greatest strengths of 'Team Korea'."

Minister Anduk Geun of the Ministry of Trade, Industry and Energy is holding a briefing on the selection of the preferred negotiator for the Czech new nuclear power plant construction project at the Government Sejong Complex on the 18th.

Known as the largest investment project in Czech history, this project involves constructing up to four large nuclear reactors at the Dukovany and Temel?n sites in the Czech Republic. KHNP has been officially selected as the preferred bidder for the construction of two new reactors at Dukovany, securing the status to negotiate exclusively with the client (EDU II) for the construction of Dukovany Units 5 and 6. The total project cost for Dukovany Units 5 and 6 is estimated by the Czech side at about 200 billion Czech koruna (approximately 12 trillion won) per unit, totaling around 24 trillion won. The contract amount will be finalized through future negotiations. A KHNP official expressed expectations, saying, "If the Czech government decides to build two additional reactors at Temel?n in the future, KHNP will be able to negotiate and subsequently sign additional contracts for Temel?n Units 3 and 4, following the two units at Dukovany."

KHNP (main contractor) has formed 'Team Korea' with KEPCO Engineering & Construction Company (design), Doosan Enerbility (main equipment and construction), Daewoo Engineering & Construction (construction), KEPCO Nuclear Fuel (nuclear fuel), and KEPCO KPS (commissioning and maintenance) to provide an integrated supply of the entire nuclear power plant construction services, including design, procurement, construction, commissioning, and nuclear fuel supply for the 1000 MW-class large nuclear power plant (APR1000). One APR1000 unit can generate about 1.2 times the annual electricity consumption of Prague (5.8 TWh), based on an 80% capacity factor.

◆The Korean Strengths That Defeated France, Who Shouted "Uri-ga Namiga"

The Czech nuclear power plant bidding began in March 2022 with the international open competition announcement for the construction of Dukovany Unit 5 by the Czech Power Company. Initially, five countries including South Korea, China, Russia, the United States, and France were expected to participate, but in 2021, the Czech government excluded China and Russia from the bidding due to security concerns.

In January this year, the Czech Power Company expanded the bidding scale from one unit to up to four units to maximize energy security and national interests. The U.S. company Westinghouse was eliminated after failing to submit a legally binding proposal, leaving a final two-way competition between South Korea and France. A government official said, "Even in the bilateral competition, it was widely believed that EDF, which leads the European nuclear alliance and has extensive European nuclear project experience, had the advantage. However, the Czech side highly evaluated the competitiveness and reliability of Korean nuclear power accumulated over the past 50 years and selected KHNP as the preferred bidder, reaffirming the international status of the Korean nuclear industry to the world."

Considering the geographical conditions as a landlocked country and power infrastructure, Korea proposed a 1000 MW-class reactor optimized for the Czech environment and obtained European vendor qualification in March last year, proving its technological capability and safety. Leveraging world-class construction capabilities accumulated over the past 50 years and experience in completing the UAE Barakah nuclear power project on budget and on time, Korea proposed a business plan with the threefold competitiveness of price, quality, and delivery. Korea completed the four Barakah nuclear reactors on schedule, whereas the UK Hinkley Point C project involving France's EDF has been delayed from the originally proposed 2027 to at least 2029.

◆'Team Korea' Shines in the Bidding... Establishing a Foothold for European Nuclear Power Exports

Overseas nuclear power projects are a national competition and an all-out national effort. This good news is the result of more than two years of joint efforts by KHNP, partner companies, the nuclear academic community, research institutes, government ministries, and support agencies. KHNP has devoted all efforts over the past two years to preparing a high-quality bid in cooperation with KEPCO Engineering & Construction, KEPCO KPS, KEPCO Nuclear Fuel, Doosan Enerbility, and Daewoo Engineering & Construction.

Korean companies operating in the Czech Republic also contributed. About 100 Korean companies, including Hyundai Motor Company and Nexen Tire, have significantly contributed to the Czech economy. In May this year, Doosan and Daewoo Engineering & Construction held a partnership event with about 150 local companies, conveying the message that the Czech nuclear power plant will be built together by Korean and Czech companies. The trust relationship built over 34 years since diplomatic relations were established in 1990 and the friendly cooperative environment created by Korean companies operating domestically laid the foundation for this selection.

This order could serve as a strong momentum to achieve the goal of exporting 10 nuclear reactors by 2030. By proving world-class competitiveness in this national all-out bidding competition, the possibility of subsequent third and fourth nuclear power exports has increased. Using this Czech order as a foothold, Korea can gain an advantage in the European nuclear power export competition in markets such as Poland, the Netherlands, and Romania.

The government expects this achievement to accelerate the restoration of the nuclear power ecosystem. Following the resumption of construction of Shin Hanul Units 3 and 4 and the ongoing procedures for the continued operation of 10 nuclear reactors, if the Czech nuclear power export contract is finalized, a large volume of high-quality export orders will be supplied, injecting new vitality into the domestic nuclear power industry.

◆Final Contract in March Next Year... Government and Private Sector Unite to Ensure Export Success

Although the selection as the preferred bidder marks passing the critical stage of nuclear power export, successful contract negotiations between KHNP and the client must be completed for the final contract to be signed around March next year.

First, a 'Negotiation Task Force (TF)' centered on KHNP will be formed to ensure thorough contract negotiations, while the government will also strengthen support in coordination with the private sector. To this end, the Ministry of Trade, Industry and Energy plans to promptly convene the 'Nuclear Power Export Strategy Promotion Committee' chaired by the minister to review follow-up measures.

Exterior view of the Dukovany Nuclear Power Plant in the Czech Republic. (File photo)

The government plans to further sophisticate its nuclear power export strategy so that this achievement leads to third and fourth nuclear power exports, enabling Korea's nuclear industry to become a global leading industry. It will expand cooperation with promising export countries and promote customized bidding marketing by country, while simultaneously exporting nuclear power plant equipment along with new nuclear power plant orders to leap into a comprehensive nuclear power export powerhouse. The government will establish a '2050 Nuclear Industry Roadmap' and promote the enactment of a 'Special Act on Nuclear Industry Support' to present a long-term vision for nuclear power exports and strengthen related support systems.

Minister An said, "We will do our best until contract negotiations are completed to ensure a mutually beneficial outcome for both Korea and the Czech Republic," adding, "We ask for the continued interest and support of all citizens so that this achievement leads to third and fourth nuclear power exports and Korea's nuclear industry can become a global leading industry."