Korea Hydro & Nuclear Power Selected for $22 Billion Czech Nuclear Project
Korea Hydro & Nuclear Power (KHNP) has been announced as the preferred bidder for a groundbreaking 30 trillion won ($22 billion) project to build nuclear power plants in the Czech Republic. This significant milestone marks the first export of a Korean nuclear reactor since the 2009 Barakah Nuclear Energy Plant deal in the United Arab Emirates.
The Czech government revealed KHNP as the winner of the contract after a cabinet meeting on Wednesday, selecting the Korean company over its French competitor, EDF.
“Korea won the status as the preferred bidder for the nuclear power plant order,” stated a government official, who further elaborated, “With advanced technology, Korea gained the upper hand over the French firm by offering a lower price and high quality.”
Initially planned for just one reactor, the project has been expanded to include the construction of four nuclear reactors at Dukovany and Temelin, increasing the project’s total value from 8 trillion won to 30 trillion won. KHNP will collaborate with Doosan Enerbility, Daewoo E&C, and several other state-run energy firms, alongside multiple Czech companies.
The state-run nuclear power plant operator aims to finalize the contract by March next year, with construction set to commence in 2029. The new reactors are expected to become operational by 2036, providing a significant boost to the Czech Republic’s energy infrastructure and enhancing the country’s energy security with a stable and sustainable energy supply for the future.
The decision to award KHNP the contract over EDF highlights the Korean firm’s competitive edge. EDF has faced delays and cost overruns in its recent projects, notably pushing back the completion date for the first reactor at Hinkley Point C in the United Kingdom to 2029 from the original 2027, resulting in increased costs.
The economic implications of this project are substantial. Over 100 Korean companies, employing approximately 14,000 workers, have been involved in various industrial infrastructure projects in the Czech Republic, underscoring the deep-rooted cooperation between the two nations.
In a recent summit held on the sidelines of the NATO meeting in Washington, D.C., South Korean President Yoon Suk Yeol advocated for the inclusion of Korean firms in the Czech nuclear project. During his discussion with Czech President Petr Pavel, Yoon highlighted the financial backing available through the Export-Import Bank of Korea and Korea Trade Insurance Corp., reinforcing the strong support from the South Korean government.
“Financial support is also available through the Export-Import Bank of Korea and Korea Trade Insurance Corp.,” Yoon emphasized during the summit.
In May, Ivan Jancarek, the Czech Republic’s ambassador to Korea, visited a nuclear power plant in Ulsan, South Korea, to observe its operations. His insights are believed to have influenced the decision-making process back in the Czech Republic, contributing to KHNP’s successful bid.
Information for this story was found via Korea Times and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
