South Korea's winning bid for Czech nuclear power project
SEOUL, July 17 (Reuters) -The Czech government has picked Korea Hydro & Nuclear Power (KHNP) as preferred bidder to build two nuclear reactors, marking South Korea's first overseas order for a large-scale nuclear power project since 2009.
The final contract, including the value, remains to be negotiated, with completion of the deal targeted for March, South Korea's industry ministry said.
However, the Czech government estimated the cost of a new unit when building two at the same site at 200 billion crowns ($8.65 billion) at current prices.
KHNP, a subsidiary of Korean state utility KEPCO 015760.KS, beat a rival bid from France's EDF as South Korea seeks to capitalise on a revival of interest globally in nuclear power, with countries seeking to enhance energy security and lower carbon emissions.
HOW DID SOUTH KOREA WIN THE ORDER?
During the bidding process, KHNP stressed its ability to meet project deadlines and keep costs within budget based on South Korea's previous track record, including its 2009 order from the United Arab Emirates (UAE), South Korean officials said.
South Korea's bid was considerably less costly than that put forward by EDF, two sources with knowledge of the matter told Reuters, declining to be identified as they are not authorised to speak to media.
NULCEAR POWER TRACK RECORD
In 2009, South Korea, spearheaded by KEPCO, signed an $18.6 billion deal with the UAE to build four nuclear reactors at the Barakah nuclear energy plant, totalling 5,600 megawatts in capacity, according to KEPCO.
Three reactors became operational in 2021, 2022 and 2023, respectively, and a fourth is on track to start operations later this year, according to KEPCO.
KHNP, which participated in the Barakah project, oversees 26 nuclear reactors in South Korea including some that have operated for nearly 40 years, and is currently building two more, according to company data.
The 26 reactors supply about a third of South Korea's electricity, according to the World Nuclear Association.
WORKING FOR NUCLEAR POWER EXPORTS
President Yoon Suk Yeol was elected in 2022 on a pledge to boost South Korea's nuclear power industry by targetting the export of 10 more nuclear power plants by 2030.
Since then, Russia's Atomstroyexport (ASE) subcontracted in 2022 to KHNP a deal worth about 3 trillion won ($2.25 billion) to provide materials and help to build four nuclear plants in Egypt.
Also in 2022, Seoul and Warsaw signed outline agreements to assess the viability of building four 1,400-megawatt nuclear reactors in Patnow, central Poland, using South Korean technology, although its status is currently uncertain.
In 2023, KHNP won an order to build a tritium removal facility for a reactor in Romania's Cernavoda nuclear power plant, and began working on a feasibility study for new nuclear power facilities in the Netherlands, the company said.
SHARES CLIMB
Shares in South Korean nuclear power plant builder Doosan Enerbility 034020.KS have climbed 48% in three months, partly on hopes about the Czech order.
Shares in KEPCO Plant S&E 051600.KS and KEPCO E&C 052690.KS, also expected to be involved in the project, have risen 14% and 41% respectively over the same period.
Reporting by Joyce Lee
Editing by Ed Davies and Mark Potter
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