South Korea and Westinghouse Plan Cooperation on Building 8 Nuclear Power Plants in the U.S.

en.Wedoany.com Reported - According to South Korean media reports on September 9, South Korea and the United States are coordinating an investment cooperation plan to build up to 8 large-scale nuclear power plants in the U.S., with a total project scale of approximately $120 billion, equivalent to about 161 trillion Korean won. Korea Hydro & Nuclear Power (KHNP) and U.S.-based Westinghouse Electric Company (WEC) are expected to collaborate on the project.

The report stated that the preliminary plans under discussion include: at least 2 of the 8 nuclear power plants will adopt the South Korean-designed APR1400 reactor, while the remaining units will most likely use Westinghouse's AP1000 technology. Specific site selection, construction entities, operational arrangements, final reactor types, investment structure, and actual capital injection scale remain subject to further negotiation and have not been finalized.

South Korea and Westinghouse were previously involved in legal disputes over technology and intellectual property issues related to South Korea's nuclear power exports. Westinghouse had earlier claimed that South Korea's APR1400 reactor used its related core technologies and filed lawsuits over export activities by Korea Electric Power Corporation (KEPCO) and Korea Hydro & Nuclear Power. The two sides subsequently reached a settlement and agreed to strengthen cooperation in the global nuclear power market.

In terms of the division of work, Westinghouse holds AP1000-related technologies, basic design capabilities, and experience in the U.S. nuclear regulatory and licensing system; South Korea, on the other hand, has accumulated extensive experience in the design, procurement, construction, project management, and operation and maintenance of large-scale nuclear power plants. The report suggests that if the two sides form a joint venture or equity cooperation model, Westinghouse may be responsible for basic design and U.S. domestic licensing, while KEPCO and KHNP would handle detailed design, construction, operation, and equipment supply.

South Korea is also discussing whether to participate in acquiring a partial stake in Westinghouse. Related reports indicate that the U.S. has previously raised the possibility of South Korean government and KEPCO participation in Westinghouse's equity arrangements. Currently, Westinghouse is jointly owned by funds affiliated with Canada's Brookfield Asset Management and uranium company Cameco. The South Korean government has not yet disclosed details such as whether it will take a stake, the stake ratio, or whether it will obtain voting rights.

South Korean industry insiders believe that if South Korea can secure clearer project interests through equity or commercial cooperation, it will help increase opportunities for South Korea's nuclear supply chain to enter the U.S. market and strengthen its leverage in intellectual property negotiations for future nuclear exports. However, the project still faces multiple uncertainties, including construction schedules, cost control, profit distribution, risk allocation, and the manner of U.S. federal and state government participation.

South Korean media also noted that after Toshiba acquired Westinghouse in 2006, delays and cost overruns in U.S. nuclear projects triggered a financial crisis, and Westinghouse filed for bankruptcy protection in 2017. South Korea's nuclear industry therefore believes that if large-scale nuclear investment in the U.S. and equity cooperation with Westinghouse proceed, adequate safeguards must be established in terms of government participation, risk isolation, cost sharing, and project governance mechanisms.

According to reports, South Korea and the U.S. may announce agreements related to U.S. investment as early as around September 18. In addition to the framework for building 8 nuclear power plants, other candidate projects for South Korean investment in the U.S. include the Encinal Gas Combined-Cycle Power Plant project in Texas and the Alaska liquefied natural gas project. The South Korean government is expected to transfer the first tranche of investment funds to the U.S. by the end of this month, exceeding $2.2 billion.