Korea's Czech nuclear project bid derailed by U.S. government

Korea's grand plan to build nuclear power plants has hit an early hurdle after the U.S. government rejected a filing by Korea Hydro and Nuclear (KHNP) related to a project in the Czech Republic. The Department of Energy in January declined to...

Four cooling towers at the Dukovany nuclear power plant in Dukovany region of the Czech Republic in 2011 [AP]

Korea's grand plan to build nuclear power plants has hit an early hurdle after the U.S. government rejected a filing by Korea Hydro and Nuclear Power (KHNP) related to a project in the Czech Republic.

The Department of Energy in January declined to accept a filing from KHNP for its bid for an 8 trillion won ($6.07 billion) project in Dukovany, the Czech Republic, saying that the documentation must be submitted by "U.S. Persons.".

In December, the Korean company filed the relevant paperwork with the Energy Department for the transfer of certain nuclear power technologies. It is now discussing the matter with Westinghouse Electric.

Pittsburgh-based Westinghouse filed a lawsuit against KHNP for intellectual property infringement in October last year. It claims that KHNP needs U.S. government consent to sell APR1400 nuclear plants overseas because the plant is created based on Westinghouse technology.

KHNP argues that it did receive assistance from Westinghouse in the early stages of APR1400 development, but adds that the core technology is domestically developed and free from U.S. export restrictions.

The Korean company released a statement Wednesday explaining that the U.S. government’s response is not a rejection that blocks APR1400 technology exports. It also said it is coordinating with Westinghouse to mediate the lawsuit, having delivered a letter to the U.S. company saying that it is open to discussion.

KHNP asserts it faces no obstacle in the bid for the Dukovany plant project. The Presidential Office also said Wednesday that there is no significant impediment to exporting nuclear plant technology in any way.

“It’s a matter of how Korea and the United States cooperate and divide roles, and not an issue of going head-to-head,” said a spokesperson for the president’s office.

“We will sustain more damage if the confrontation with Westinghouse continues, since Korea is the weaker party in global politics,” said Moon Joo-hyun, a nuclear engineering professor at Dankook University. The United States will also be unable to finish power plant projects within the deadline if it limits partcipation by Korean companies, Moon added.

The lawsuit needs to be concluded as soon as possible, and the Korea-U.S. nuclear power cooperation needs enhancement backed by President Yoon’s state visit to the United States this month, according to the professor.

Three companies — KHNP, Westinghouse Electric and France’s EDF — have submitted bids for the 1,200 megawatts power plant project. The winner is scheduled to be announced next year.

The Yoon administration has repeatedly highlighted nuclear power as one of its core agendas going forward.

BY JUNG JONG-HUN, SOHN DONG-JOO [sohn.dongjoo@joongang.co.kr]