Hyundai E&C, Holtec sign nuclear power plant decommissioning deal

Hyundai Engineering & Construction Co. is tapping into the US nuclear power plant dismantlement market by expanding its partnership with Holtec International.

The South Korean builder and Holtec on Wednesday signed an agreement to jointly participate in the decommissioning of the Indian Point Energy Center nuclear power plant in Buchanan, New York.

Indian Point’s three-unit plant station was shut at the end of April 2021 after 45 years of operation.

As the project manager, Hyundai E&C will oversee the entire decommissioning project, including moving used nuclear fuel from pools into a dry storage system and dismantling activated parts from the nuclear reactors.

Under the agreement, Hyundai said the two companies will also seek joint business opportunities, including nuclear power plant decommissioning, in other global markets.

With the deal, Hyundai E&C has become Korea’s first company to participate in the nuclear power plant dismantlement business in the US.

“The deal shows our technological prowess in nuclear power plant construction and decommissioning projects. We will continue to actively seek new businesses, including wind power projects,” said Hyundai E&C Chief Executive Yoon Young-joon.

EXTENDED PARTNERSHIP

The agreement comes four months after the companies signed a contract on a small modular reactor (SMR) construction project.

In November, Hyundai E&C and Holtec, which specializes in the design and manufacture of parts for nuclear reactors, agreed to jointly install the US company’s SMR-160 model at nuclear power plants they build globally.

SMRs are attracting attention as next-generation energy providers due to their lower investment costs and fewer carbon emissions than existing large nuclear power plants.

Nuclear power decommissioning is emerging as a fast-growing business, with US consulting firm Bates White expecting the market to grow to 123 trillion won ($102 billion) by 2030 and further to 204 trillion won by 2050.

Of 442 nuclear power plants around the world, about 45%, or 199 plants, are set for permanent shutdown.

HIGH ENTRY BARRIER

The entry barrier to the market is also high as only a handful of countries, including the US, Germany, Japan and Switzerland, own nuclear power plant dismantlement technology.

Hyundai expects its partnership with Holtec to enhance its chance of obtaining decommissioning projects in Korea.

The latest deal comes amid growing industry expectations that Korea’s new president will foster the nuclear power business, a turnaround from the outgoing Moon Jae-in administration.

President-elect Yoon Suk-yeol, who takes office in May, has indicated an intention to rescind the current government policy of phasing out nuclear energy and intends to promote the development of small modular reactors.

Hyundai entered the nuclear power plant construction business in 1971 when it and Westinghouse Electric Co. jointly built the Gori 1 plant, Korea’s first nuclear power plant.

Hyundai has since constructed 18 nuclear plants, or over 60% of 30 such plants, across South Korea.

Write to Jeong-Jin Eun at silver@hankyung.com
In-Soo Nam edited this article.