Seoul: The state-run Korea Hydro and Nuclear Power Co. (KHNP) and U.S. energy firm Westinghouse Co. have engaged in discussions to form a joint venture aimed at capitalizing on the growing nuclear power plant market in the United States and Europe, sources revealed on Thursday.
According to Yonhap News Agency, the deliberations are part of a broader initiative to enhance cooperation between South Korea and the United States in the nuclear power sector. Energy officials from both countries have conducted several meetings to this end since U.S. President Donald Trump assumed office. President Trump has expressed a commitment to expanding the U.S. nuclear energy capacity from 100 gigawatts (GW) to 400 GW by 2050, which translates to the construction of approximately 300 new nuclear reactors.
In support of this initiative, President Trump has issued executive orders aimed at reducing the evaluation and approval process for new construction and operation licenses to 18 months. During recent discussions, U.S. officials have encouraged Korean companies to actively participate in the U.S. plan to revitalize its nuclear energy industry.
Additionally, a resolution of an intellectual property (IP) dispute between KHNP and Westinghouse has paved the way for potential bilateral cooperation in nuclear energy. This settlement, signed in January, followed accusations by Westinghouse that KHNP had infringed on its IP by using licensed technology in its APR 1000 and APR 1400 plant designs.
This deal eliminated a significant barrier for a KHNP-led Korean consortium to finalize a contract with the Czech Republic in June to construct two nuclear reactors, valued at approximately 26 trillion won (US$18.7 billion).
While the specifics of the settlement remain confidential, industry sources indicate that the agreement restricts KHNP from bidding for new power plant projects in North America and the European Union, with the exception of the Czech Republic. However, if KHNP partners with Westinghouse in a joint venture, it could participate in projects within these regions as a partner of the U.S. company.
Market analysts suggest that Westinghouse requires a partner with capabilities in construction, equipment procurement, and operation, as the U.S. firm currently lacks construction capabilities despite possessing original design technology.
Globally, only South Korea and France, apart from Russia and China, have comprehensive nuclear power plant construction capabilities. Despite being a leader in original nuclear technology, the U.S. has lagged in construction capabilities, having not built a new reactor since the 1979 Three Mile Island incident in Pennsylvania.
Earlier this week, KHNP CEO Whang Joo-ho indicated during a parliamentary committee meeting that the company intends to prioritize entering the U.S. market over Europe, suggesting potential collaboration with Westinghouse. Whang is scheduled to visit the U.S. from Saturday to Wednesday to meet with officials from Westinghouse and other American energy firms.
An official, speaking anonymously, stated, "It is true that KHNP and Westinghouse have been discussing forming a JV for some time. However, it remains uncertain whether an agreement will be reached during Whang's upcoming visit to the U.S."