Korea’s KHNP likely to sign nuclear power plant deal with Poland

Korea Hydro and Nuclear Power Co. (KHNP) is expected to sign an initial agreement to build a nuclear power plant in Poland, separate from a three-way auction underway in the European country, according to media reports.

The South Korean company is close to signing a letter of intent (LOI) with Poland’s state-run power company PGE (Polska Grupa Energetyczna) and private firm ZE PAK to build a nuclear power plant, Polish newspaper Rzeczpospolita reported on Wednesday.

The three parties will likely reach a tentative deal within two weeks, it said.

The project will be located in Patnow, where ZE PAK is running a coal power plant, according to the report.

The reported deal is separate from another Polish project to build six pressurized water reactors in other parts of the country. In April, state-run KHNP submitted a business proposal to participate in the bidding, which also drew companies such as US contractor Westinghouse and French firm Électricité de France (EDF).

If the Korean company wins both deals, the value of the contracts would reach at least 10 trillion won ($7 billion), industry officials said.

The deals would also mark Korea’s first significant contracts in 13 years to build overseas nuclear power plants.

In 2009, KHNP, Korea Electric Power Corp. (KEPCO) and other Korean equipment makers clinched a deal with the United Arab Emirates (UAE) to build four Korean-made APR-1400 nuclear reactors in Barakah near Abu Dhabi.

More recently, a Korean consortium led by KHNP and Doosan Enerbility Co. in August won a 3 trillion won deal to construct some 80 buildings and structures for a nuclear power plant in Egypt.

KOREA AIMS TO EXPORT 10 REACTORS BY 2030

Korea’s Yoon Suk-yeol administration, in a turnaround from the previous government’s relinquishment of nuclear power, is striving to export at least 10 nuclear power plants by 2030.

Korean contractors’ relatively low construction costs and strong supply chain give them a competitive edge over global rivals, industry officials said.

Other than Poland, Korea is also competing with Westinghouse and EDF in a project to build one or two nuclear power plants in Dukovany, the Czech Republic.

Korea is also looking to export its nuclear reactors to Saudi Arabia, which requires approval from the US government as the US owns the original technology for Korea’s APR1400 reactors.

Polish newspaper Rzeczpospolita said a possible deal among KHNP, PGE and ZE PAK is part of Seoul and Warsaw's defense industry cooperation.

The two sides earlier signed agreements for Korea to export Chunmoo multiple launch rocket systems (MLRS), K2 Black Panther tanks, K9 self-propelled howitzers and FA-50 fighter jets to Poland.

Write to Ji-Hoon Lee at lizi@hankyung.com
In-Soo Nam edited this article.