Korea, U.S. seek nuclear alliance for potential projects in Poland, Czech

The Shin Hanul No. 1 nuclear reactor in Uljin [Photo by Kim Ho-young]

Korea and the U.S. are set to strengthen their nuclear energy alliance in order to seek out potential new reactor orders in Poland and the Czech Republic, on the back of President Yoon Suk Yeol’s recent visit to the U.S.

The Maeil Business Newspaper has learned that Minister of Trade, Industry and Energy Lee Chang-yang and U.S. Secretary of Energy Jennifer Granholm met in Washington D.C. on Thursday and discussed ways to promote cooperation on overseas nuclear power plant opportunities, reportedly reaching a consensus that Korea and the U.S. can strengthen their joint capabilities in exporting nuclear power plants to win new orders by enhancing Seoul-Washington alliance.

This alliance has been put to the test since the U.S. nuclear power company Westinghouse Electric Company LLC filed an intellectual property lawsuit against the Korea Electric Power Corp. and its subsidiary Korea Hydro & Nuclear Power Co.

In the October lawsuit, Westinghouse asked a U.S. federal court to block the Korean parties from selling APR1400 reactor model. It claims that KHNP must obtain approval from the U.S. company and the energy department in order to export the reactor to other countries on the grounds that the APR1400 incorporates its technologies. While the two sides have been in the midst of this dispute, Russia and China have been rapidly expanding their own exports of nuclear power plants to global markets.

Against such a backdrop, the Seoul and Washington governments have agreed to tighten their joint alliance in the areas of nuclear power, based on the belief that there are more things to lose than to win from the ongoing dispute between KEPCO and Westinghouse. They recognize that the dispute is more likely to result in lost opportunities on both sides in the global market if it continues.

“Although Korean and U.S. players may be competitors in the global nuclear market, cooperation is essential as they have complementary strengths,” said one industry expert. “The two sides need to expand cooperation to the field of small modular reactors, the next generation of nuclear power plants, beyond standard nuclear reactor exports.”

The two allies have recognized the need to reinvigorate their alliance especially as they see many new potential opportunities, including in Poland, Czechia, Turkey and in the U.K., following their announcements of new nuclear power projects.

Poland is planning some private nuclear power projects, in addition to the nuclear power plant in Patnow that will be built by KHNP. The Korean nuclear power company has also submitted a bid late last year for the Dukovany nuclear power plant in the Czech Republic, which will select a preferred bidder by March next year.

KEPCO has submitted a preliminary proposal to Turkish authorities for their Sinop nuclear power plant, while it is in talks in the U.K. for a potential partnership on nuclear power projects. The United Arab Emirates is also reviewing two new orders for its Barakah plant that has been built by KEPCO.

Nuclear experts note that the Korea-U.S. alliance will be able to provide great support for the bidders of the two countries for global nuclear projects, based on Korea’s competence in construction and supply chain management combined with the U.S. diplomatic power and deep pockets.

Westinghouse also needs to improve its relationship with Korean parties to increase its corporate value ahead of its sale sought by Brookfield Business Partners LP, the company’s current largest shareholder, scheduled to be completed by June.

In addition, Korea seeking exports on its own would threaten Westinghouse’s position in the global nuclear power market as Westinghouse does not have the construction capabilities. Some industry insiders see the bilateral meeting between the two governments could lead to a settlement between KEPCO, KHNP and Westinghouse.

That same day, the Korean minister also met with U.S. Secretary of Commerce Gina Raimondo to exchange views on bilateral economic cooperation. The minister reportedly represented challenges that Korean companies face. Korean companies are hoping that the U.S. government will potentially ease the 5 percent limit in production capacity in China over the next 10 years for Korean chipmakers that are qualified for incentives under the Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022, often dubbed as the CHIPS Act.