KHNP closes in on final deal to build nuclear plant in Poland: PGE CEO

Korea Hydro and Nuclear Power Co. (KHNP) and its counterparts are now in a situation where most conditions have been met to allow them to sign a binding deal to build a nuclear plant in Poland, said the head of PGE Polska Grupa Energetyczna SA, which is one of three parties taking part in the talks.

They are currently left with only a few issues to iron out, like each party’s stake ownership, Wojciech Dabrowski, chief executive of Poland’s state-run power company, told reporters on Monday during his visit to South Korea to attend the 2023 International Congress on Advances in Nuclear Power Plants, which will be held until April 27.

“We can sign a (binding contract) any time,” added the PGE CEO.

KHNP, Korea Electric Power Corp.’s (KEPCO) wholly owned nuclear and hydropower plant operator, signed a letter of intent in October last year with PGE and Polish private power company Zespol Elektrowni Patnow-Adamow-Konin SA (ZEPAK) to build a nuclear power plant that consists of two or four power units with a 1.4-gigawatts (GW) capacity, each.

ZEPAK and PGE earlier this month set up their 50%-50% special purpose joint venture company PPEJ for the project to build a nuclear power plant in Patnow, where ZEPAK is running a coal power plant.

They hope to set up a second SPC for the project soon with KHNP to sign a final contract after agreeing on each party’s stakeholding.

Dabrowski said he hopes KHNP can take a 49% stake in the second SPC, but the Korean company said nothing has yet been decided regarding the stake ownership, saying that the 49% stake is what Poland hopes.

Once they agree on the details of the second SPC, they will discuss the construction and field inspection schedules for the project.

KHNP’s Polish counterparts hope to start the test operation of their first nuclear plant in Patnow in 2035, while PGE CEO encouraged more Korean companies to participate in the project, which is a private nuclear project but fully supported by the Polish government.

Dabrowski touted KHNP as the best partner for the Patnow nuclear project, citing the Korean company’s track record of completing previous major energy projects without delay.

If the Korean company signs the binding contract, it would be Korea’s first massive overseas nuclear power plant contract since 2009 when it signed a $20 billion deal with the United Arab Emirates to build and operate four Korea-made APR-1400 nuclear reactors.  

It is also expected to pave the way for more Korean nuclear power exports to Europe after a Korean consortium led by KHNP and Doosan Enerbility Co. in August last year bagged a 3 trillion won ($2.2 billion) order to construct some 80 buildings and structures for a nuclear power plant in Egypt.  

The Korean government under President Yoon Suk Yeol has vowed to export 10 nuclear power plants by 2030.  

But even after KHNP signs the final deal with its Polish counterparts, it has hurdles to overcome.  

US Westinghouse Electric last year filed complaints against KHNP and its parent KEPCO, saying the APR-1400 used its technology and demanding the Korean companies get approval from the US government to export the reactor model.

They are still in negotiations to settle the issue.

US Westinghouse in October last year won a $40 billion deal to construct Poland’s first nuclear power facility, separate from the project that KHNP has been discussing with ZEPAK and PGE.

Write to Sul-Gi Lee at surugi@hankyung.com

Sookyung Seo edited this article.