Seoul: The state-run Korea Hydro and Nuclear Power Co. (KHNP) and U.S. energy firm Westinghouse Co. are reportedly in discussions to form a joint venture aimed at capitalizing on the revitalizing nuclear power plant markets in the United States and Europe. This move is seen as part of efforts to enhance cooperation between South Korea and the U.S. in the nuclear sector.
According to Yonhap News Agency, the discussions are aligned with U.S. President Donald Trump's ambitious plan to expand the country's nuclear energy capacity from 100 gigawatts (GW) to 400 GW by 2050, translating to the construction of approximately 300 new nuclear reactors. Trump's administration has facilitated this expansion by reducing the time required to evaluate and approve new construction and operation licenses to 18 months.
In recent meetings, U.S. officials have encouraged Korean companies to actively participate in Washington's nuclear energy industry revival. The resolution of an intellectual property dispute between KHNP and Westinghouse earlier this year has paved the way for increased bilateral cooperation. The settlement, which followed accusations from Westinghouse of KHNP's infringement on its licensed technology, allows KHNP to move forward with its plans.
The settlement also enabled a KHNP-led consortium to secure a significant contract in the Czech Republic for the construction of two nuclear reactors, a deal valued at 26 trillion won (approximately US$18.7 billion). However, the agreement restricts KHNP from bidding on new projects in North America and the EU, except in the Czech Republic. A joint venture with Westinghouse would allow KHNP to circumvent these restrictions and participate in additional projects as a partner.
Market analysts highlight that Westinghouse is in need of a partner with capabilities in construction, equipment procurement, and operation, given the U.S. firm's lack of construction expertise. South Korea, alongside France, possesses comprehensive nuclear power plant construction capabilities, a distinction shared only with Russia and China.
Despite the U.S. holding strong original technologies for nuclear power plants, its construction capabilities have lagged due to a lack of new reactor projects since the 1979 Three Mile Island incident. KHNP CEO Whang Joo-ho recently indicated a strategic shift towards the U.S. market, suggesting a focus on collaboration with Westinghouse to enter this market effectively.