KHNP And Westinghouse ‘Holding Talks’ Over Nuclear JV For US And Europe

Korea Hydro & Nuclear Power (KHNP) and Westinghouse are holding talks to set up a joint venture for US and European projects as they try to move on from a legal settlement that has been criticised by politicians in Seoul, multiple press reports have said.

The UK daily Financial Times (subscription required) reported that KHNP’s chief executive will travel to Washington on Saturday to meet executives from Pennsylvania-based Westinghouse.

The proposed joint venture could pave the way for South Korean groups to expand in the US, where president Donald Trump has pledged to quadruple nuclear energy capacity by 2050.

“The two countries are expected to discuss ways to cooperate on nuclear power, including building nuclear power plants in the US,” a South Korean Democratic Party lawmaker told The Korea Economic Daily.

The move comes after KHNP was awarded a 26 trillion won (€16bn, $18.6bn) contract in June to build two nuclear power plants at Dukovany in the Czech Republic, following the resolution in January of a long-running dispute over nuclear technology rights with Westinghouse.

Unconfirmed reports have said KHNP ceded leadership of nuclear projects in Europe to Westinghouse when it settled the dispute in order to secure the Dukovany contract.

As a result, KHNP is said to be barred from entering the nuclear markets of European Union member states – except the Czech Republic – the US, the UK, Japan and Ukraine.

Thi means it is restricted to pursuing projects in Southeast Asia, Central Asia, the United Arab Emirates, Saudi Arabia, South America and Turkey, reports said.

According to press reports, KHNP and its parent company Korea Electric Power Corporation also agreed to pay Westinghouse $825m in goods, services and royalties per exported reactor over the next 50 years.

Westinghouse had accused the South Korean company of infringing on its intellectual property, claiming KHNP’s APR1000 and APR1400 plant designs use its licensed technology.

The January settlement removed a major hurdle for a KHNP-led consortium to sign the final Dukovany contract in June.

KHNP has withdrawn from bidding for nuclear deals in the Netherlands, Slovenia and Sweden in the past year. The company also said this week it had pulled out of a potential Polish project.