KHNP, Westinghouse may create joint venture to target global nuclear power market: sources
SEOUL, Aug. 21 (Yonhap) -- The state-run Korea Hydro & Nuclear Power Co. (KHNP) and U.S. energy firm Westinghouse Co. have held talks on creating a joint venture (JV) to jointly target the recovering nuclear power plant market in the United States and Europe, sources said Thursday.
The possibility was discussed as part of efforts to boost cooperation between South Korea and the United States in the nuclear power plant sector, according to the sources familiar with the matter, who noted energy officials from the two countries have held a number of meetings to that end since U.S. President Donald Trump took office.
Trump has vowed to expand his country's nuclear energy capacity from the current 100 gigawatts (GW) to 400 GW by 2050, which will be equivalent to building some 300 new nuclear reactors.
To this end, the U.S. president has signed executive orders that shortened to 18 months the time needed to evaluate and approve new construction and operation licenses.
In the recent meetings with South Korea, U.S. officials are said to have asked Korean companies to play an active role in Washington's plan to reinvigorate its nuclear energy industry.
U.S. energy officials have also told their Korean counterparts that with the settlement of an intellectual property (IP) dispute between the KHNP and Westinghouse, conditions for bilateral nuclear energy cooperation have been established, the sources said.
The KHNP and Westinghouse signed the settlement deal in January after the latter accused the Korean firm of infringing on its IP, claiming the KHNP's APR 1000 and APR 1400 plant designs utilize its licensed technology.
The deal removed a major hurdle for a KHNP-led Korean consortium to sign a final contract with the Czech Republic in June to build two nuclear reactors in the European country for an estimated 26 trillion won (US$18.7 billion).
The details of the settlement deal remain undisclosed, but according to industry sources, the bilateral agreement prohibits the KHNP from bidding for new power plant projects in North America and the European Union, except for the Czech Republic.
But if the KHNP forms a JV with Westinghouse, the Korean company will be able to take part in projects in the regions as the U.S. company's partner.
Market watchers say Westinghouse needs a business partner that has capabilities in construction, equipment procurement and operation, noting the U.S. firm currently remains what they called a "fabless" company that only has original design technology with no construction capabilities.
Across the world, South Korea and France are the only countries that have comprehensive nuclear power plant construction capabilities other than Russia and China, they said.
The U.S. is still a powerhouse in original technologies for building nuclear power plants but has fallen behind in terms of actual construction capabilities as the country has rarely built a new reactor since 1979, when it experienced a nuclear meltdown accident at a facility on Three Mile Island in Pennsylvania.
Earlier this week, KHNP CEO Whang Joo-ho said during a parliamentary committee meeting that his company reached a conclusion that it should focus on targeting the U.S. market rather than the European market, remarks that appeared to be referring to the KHNP's push to enter the American market as Westinghouse's partner.
Whang plans to visit the U.S. from Saturday to Wednesday to meet with officials from Westinghouse and two other American energy firms, according to industry officials.
"It is true that the KHNP and Westinghouse have been discussing forming a JV for some time," an official said on the condition of anonymity. "But it is uncertain if the two companies will reach an agreement during Whang's upcoming visit to the U.S."
In an apparently related move, Korea Electric Power Corp. (KEPCO) CEO Kim Dong-cheol was set to head for the U.S. later Thursday to meet with officials from Westinghouse and American electric power companies, according to company officials.
nyway@yna.co.kr
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