South Korea’s long-held ambition of exporting its nuclear energy expertise received a serious enhance this week, probably setting it as much as be the reactor supplier of option to a number of international locations.
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Revealed Jul 20, 2024 • 3 minute learn
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(Bloomberg) — South Korea’s long-held ambition of exporting its nuclear energy expertise received a serious enhance this week, probably setting it as much as be the reactor supplier of option to a number of international locations.
State-owned Korea Hydro & Nuclear Energy Co. was chosen to construct two multibillion-dollar reactors within the Czech Republic, beating out rivals and paving the best way for Korean corporations to probably rating a string of offers throughout the continent.
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“Now a bridgehead has been established for us to export nuclear vegetation to Europe,” Korea’s Commerce, Trade and Power Minister Ahn Duk-geun declared after the win.
The venture, as soon as finalized, might put the Asian nation in pole place to construct reactors in Europe, which is as soon as once more warming to nuclear power to wean itself off costly fossil fuels and hit bold air pollution discount targets. Due to their cost-competitiveness and an export technique honed over a long time, the Koreans are edging out rivals mired in funds overruns and delays or geopolitical and commerce tensions.
Korea Hydro & Nuclear is conducting a feasibility examine for a nuclear plant within the Netherlands, whereas Sweden’s Vattenfall AB is contemplating utilizing Korean expertise. The nation can also be in talks to produce reactors to the UK, Poland and Slovenia, placing it on observe to attain the federal government’s pledge to export 10 models by 2030.
Its rise gained’t be with out contest. President Joe Biden this week signed a invoice that guarantees to revive the US’s nuclear business, and even facilitate the export of expertise. Westinghouse Electrical Co. has filed a lawsuit claiming South Korea is utilizing its mental property and ought to be barred from sharing it. The US firm warned it could file authorized challenges over the Czech deal.
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All-in-One Bundle
A lot of South Korea’s ascent is because of its means to ship reactors as all-inclusive packages — from gear, development, and gasoline provide to commissioning, upkeep, and even financing — whereas largely assembly deadlines and containing prices.
“A nuclear plant is a lot greater than a reactor,” stated Mark Nelson, managing director at Radiant Power Group, a consultancy. “It’s civil engineering, it’s blueprints, crane operators. And Korea has that,” he stated. “They’ll supply essentially the most aggressive package deal,” he added.
South Korea was picked to construct the reactors within the Czech Republic for 400 billion koruna ($17.3 billion).
In contrast, Electricite de France SA stated earlier this yr that two reactors at Hinkley Level within the UK would value as a lot as £35 billion in 2015 phrases, which might equate to $45 billion at present alternate charges, and take a number of years longer than deliberate. Within the US, Southern Co.’s Vogtle nuclear facility got here in additional than $16 billion over funds and 7 years not on time.
Seoul’s nuclear export technique has been a long time within the making. Again in 1987, its state-run utility agreed to a expertise switch with US-based Combustion Engineering, then developed the design to create its personal homegrown reactor. Since then, it’s constructed 28 reactors domestically, with 4 extra scheduled to function earlier than 2040.
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Its first reactor export, to the United Arab Emirates, was introduced in 2009. The Arab world’s first industrial nuclear facility grappled with delays and got here in 25% over funds, however that didn’t cease South Korea’s export push.
“Korea has a full home, skilled, provide chain,” stated Jeremy Gordon, an unbiased nuclear power advisor. “And their business has the reassurance of a authorities that’s dedicated to nuclear, strategically, for power safety, financial and local weather causes, which supplies the entire Korean nuclear ecosystem the boldness to take a position.”
This implies the Asian nation is well-placed to scoop up alternatives because the world returns to atomic power after it was shunned for many years as a result of worst nuclear accident in historical past at Chernobyl. Russia’s invasion of Ukraine has served as a wake-up name for European leaders to cut back dependence on imported fuel, and 25 international locations, together with greater than a dozen in Europe, have set a objective to triple international capability by 2050.
But it surely’s a small pool of reactor builders on the market. Western corporations wrestle to ship on time and on funds. And European governments are reluctant to log off on tasks with state-owned giants from Russia and China — presently dominant in international reactor development — on account of safety considerations, since nuclear vegetation are significantly delicate items of infrastructure.
“If South Korea manages the development of those reactors within the Czech Republic a minimum of fairly nicely, it wouldn’t shock me in the event that they go on to promote extra to different international locations,” stated Matt Bowen, a senior researcher on the Heart on International Power Coverage at Columbia College. “After which, sure, South Korea would turn into extra essential to world nuclear power provide.”
—With help from Shoko Oda.
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