South Korea Bags Czech Nuclear Power Project with KHNP

The Czech government selected Korea Hydro & Nuclear Power (KHNP) to build two nuclear reactors, South Korea's first large-scale nuclear power project abroad since 2009. KHNP's bid was more cost-effective than its competitor, France's EDF. The project, estimated to cost $8.65 billion, aims for a final contract by March.

The Czech government has selected Korea Hydro & Nuclear Power (KHNP) as its preferred bidder to construct two new nuclear reactors. This marks South Korea's first major international nuclear power order since 2009. The final contract's value will be negotiated, with completion targeted for March, according to South Korea's industry ministry.

Estimated by the Czech government to cost 200 billion crowns ($8.65 billion), the KHNP bid outperformed a rival proposal from France's EDF. This project aligns with South Korea's effort to leverage a global resurgence in nuclear power for enhancing energy security and reducing carbon emissions.

KHNP highlighted its proven ability to meet project deadlines and control costs, citing its 2009 project with the UAE as an example. South Korean sources confirmed the bid's lower cost compared to EDF's, although they declined to be named due to media restrictions.

KHNP, a subsidiary of KEPCO, has a strong track record, including its involvement in the $18.6 billion Barakah nuclear energy project in the UAE. Its 26 operational reactors in South Korea generate about a third of the country's electricity.

President Yoon Suk Yeol, elected in 2022, has focused on expanding South Korea's nuclear power exports, aiming to export 10 more plants by 2030. KHNP recently secured contracts and agreements in Egypt, Poland, Romania, and the Netherlands.

Market optimism about the Czech project has led to a 48% surge in Doosan Enerbility shares over the past three months. Shares in KEPCO Plant S&E and KEPCO E&C have also increased by 14% and 41%, respectively.

(With inputs from agencies.)