Relying on a $18B nuclear undertaking in the Czech Republic provides a financial boon for Korea's ailing economy amid economic challenges
Title: Ready for takeoff: Korus sets sail to Europe's nuclear frontier
Sailing towards a partnership
The Dukovany Nuclear Power Plant in the Czech Republic, home to some major renovations, has reached a significant milestone in its journey. Korea Hydro & Nuclear Power (KHNP) has emerged as the chosen partner for this exciting project, marking a historical moment for South Korea's nuclear sector.
Paving the way for cooperation
- Nuclear growth in the Czech Republic: The Czech Republic aims to boost its domestic energy production and secure energy independence, making the Dukovany expansion a strategic priority.
- South Korea's aggressive expansion: South Korea is staking its claim in the European nuclear market with this ambitious project, its largest overseas nuclear endeavor since the 2009 Barakah deal in the UAE.
The nitty-gritty details
A consortium led by KHNP will build two brand-new 1,000-megawatt reactors at the Dukovany site, with the contract estimated to be worth an impressive $18.2–18.3 billion (26–26.2 trillion won). This project symbolizes a significant achievement for Korea's nuclear industry, providing a much-needed economic boost during challenging domestic periods.
The Czech government has taken decisive action in easing the project's path, acquiring an 80% stake in Elektrarna Dukovany II (EDU II), the project's operator, via state loans. This maneuver simplifies EU Commission procedures and bolsters financial security.
Countdown to the future
- Selection of preferred bidder: KHNP's stellar performance during the competitive international tender in July 2024 secured its place as the chosen partner.
- Contract signing: On May 7, 2025, the official agreement will be formalized in Prague, marking the beginning of this transformative partnership.
- Implementation: Following the signing of the contract, KHNP and its consortium collaborators, under the "Team Korea" banner, are prepared for a rapid mobilization phase.
Steering towards success
This partnership with the Czech Republic sets South Korea on a course to solidify its standing in the European nuclear energy market, offering relief amidst domestic economic uncertainties. The Czech Republic, for its part, expects to bolster its energy security and pursue carbon reduction goals while leveraging government-backed financing.
- The Czech Republic is partnering with Korea Hydro & Nuclear Power (KHNP) for the expansion of the Dukovany Nuclear Power Plant, creating a historical moment for South Korea's nuclear sector.
- South Korea's selection as the partner for the Dukovany expansion is a strategic move to bolster its exports in the European nuclear market, following its large-scale overseas nuclear project in the UAE in 2009.
- A consortium led by KHNP will construct two new 1,000-megawatt reactors at the Dukovany site, with a contract worth approximately $18.2–18.3 billion (26–26.2 trillion won).
- The Czech government has facilitated the project by acquiring an 80% stake in Elektrarna Dukovany II (EDU II), the project's operator, through state loans, streamlining EU Commission procedures and ensuring financial security.
- KHNP and its consortium collaborators, under the "Team Korea" banner, are ready for a quick mobilization phase following the signing of the contract, which is scheduled to occur on May 7, 2025, in Prague.
- This partnership not only offers South Korea the opportunity to strengthen its position in the European nuclear energy market but also enables the Czech Republic to secure energy independence, pursue carbon reduction goals, and leverage government-backed financing.
