Korean Nuclear Firm Says It’s Closing In on More Reactor Deals

(Bloomberg) -- Korea Hydro & Nuclear Power Co. says it’s getting more interest in its reactors from European and Asian buyers after winning a $17 billion contract to sell two units to the Czech Republic last month.

The state-run company is edging closer to deals with customers in Sweden, Finland, the Netherlands and Slovenia, Chief Executive Officer Whang Jooho said in an interview. The firm has also been approached by buyers in Norway and Kazakhstan since the Czech sale was announced, he said, adding that it was on target to meet Seoul’s goal of exporting 10 reactors by 2030.

The Czech deal, the first by a Korean company to Europe, highlighted Seoul’s advantage in the race to meet burgeoning interest in nuclear power by countries trying to decarbonize their grids. Korea Hydro & Nuclear’s cost-competitiveness helped it beat out Electricite de France SA and Westinghouse Electric Co., and South Korea also stands to benefit from a reluctance in many Western countries to buy reactors from low-cost suppliers like China and Russia, due to security and trade concerns.

“It’s a tough battle, but we’re far ahead of everyone else in the game,” said Whang, who took the helm at Korea Hydro & Nuclear in 2022, charged with spearheading its export push. “Korea is indeed well positioned without China and Russia in the picture right now, but we’ll ultimately need to think about competing against them.”

The company is facing legal challenges, however. Westinghouse filed an appeal with the Czech Anti-Monopoly Office this week, alleging Korea Hydro & Nuclear is using its technology and doesn’t have the right to export it. That followed a 2022 lawsuit by the US company that seeks to prevent “unauthorized” sharing of its intellectual property.

Korea Hydro & Nuclear is bolstering its cooperation with the US, including pursuing long-term deals to secure nuclear fuels and trying to address the Westinghouse dispute, said Whang, a 68-year-old former professor of nuclear engineering. 

“We are working to ensure that the risks from the lawsuit with Westinghouse won’t blow into a huge issue,” he said. “We’re hoping to resolve the conflict before we finalize the Czech deal.”

Before that sale, the company previously supplied four reactors to the United Arab Emirates. At home, it’s aiming to produce hydrogen from nuclear power by 2028, and also has plans to complete building its first small modular reactor by 2031, Whang said. 

The complexity of nuclear power — including massive upfront costs, construction delays and strict safety rules — make it challenging to deliver projects around the world, he said, but Korea’s biggest strength is its ability to provide all-inclusive packages on time and within budget. 

“We have a very diversified portfolio – we can deliver reactors in all sizes from large to small, and we can also help revamp older ones to extend their operating life,” Whang said. “The Czech deal also included a proposal to build a hydrogen plant that will be powered by nuclear energy.” 

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