South Korea's state-run Korea Hydro & Nuclear Power Co. (KHNP) said on Friday it has reached an agreement with US-based Westinghouse Electric Co. to end their protracted intellectual property rights dispute over nuclear power plant technology.
Analysts said the agreement will remove a major hurdle for KHNP and its parent Korea Electric Power Corp. (KEPCO) to finalize a $17.1 billion deal to build two nuclear power reactors in the Czech Republic.
“Through this agreement, we have officially resolved the intellectual property dispute with Westinghouse and agreed to strengthen cooperation in the global nuclear power market,” the two Korean companies said in a joint statement.
“By restoring our collaborative relationship, we aim to enhance our competitiveness in the international nuclear sector,” said KHNP Chief Executive Whang Joo-ho.
Korea Hydro & Nuclear Power headquarters in Gyeongju, South Korea KEPCO CEO Kim Dong-cheol said: “The agreement restores our traditional partnership of nearly 50 years and clears the uncertainties caused by legal disputes, allowing us to actively pursue overseas nuclear power plant projects.”
In its statement, Westinghouse said the agreement sets the stage for future cooperation between the parties to advance new nuclear projects globally.
“As the world demands more firm baseload power, we look forward to opportunities for cooperation to deploy nuclear power at even greater scale,” said Westinghouse CEO Patrick Fragman.
Comeco, a Canadian nuclear fuel company with a large stake in Westinghouse, also welcomed the agreement.
“With more than 30 countries and over 100 companies pledging to triple nuclear capacity by 2050, the demand for nuclear power is undeniable. This agreement strengthens the industry’s ability to provide carbon-free, reliable, dispatchable baseload electricity to help achieve climate, energy and national security objectives,” said Cameco CEO Tim Gitzel.
Westinghouse's logo is seen at its headquarters in the US (Courtesy of Reuters via Yonhap) All parties involved declined to reveal the terms of the settlement, citing a confidentiality agreement.
CLOSER TO CZECH DEAL
The agreement effectively removes a major hurdle to KHNP's signing of a project to build two reactors at the Czech Republic's Dukovany power plant. The deadline for the deal was set for March.
A Korean consortium led by KHNP was selected in July 2024 as the preferred bidder to build nuclear reactors in the Czech Republic, beating Électricité de France S.A. (EDF) and Westinghouse, for the 400 billion-crown ($17.1 billion) project.
But the deal's signing has been put off after Westinghouse and EDF filed complaints against the decision.
AP1000, a nuclear power reactor designed by Westinghouse (Courtesy of Westinghouse Electric) KHNP has been enmeshed in legal disputes with Westinghouse over its technology license, a key hurdle to Korea’s nuclear reactor exports.
Westinghouse argued that the Korean nuclear reactor model, APR1400, was based on the original design and technology of its APR1000 model. Therefore, KHNP and KEPCO should pay Westinghouse royalties for exports of the APR1400 reactors, it said.
But KHNP said it was licensed to use the technology, so it can export it without permission from the US nuclear plant developer and is not liable for royalty payments.
BEHIND-THE-SCENE DEALS?
The settlement agreement came about a week after Seoul and Washington signed a memorandum of understanding on nuclear exports and cooperation.
Barakah nuclear power plant in the United Arab Emirates, built by Samsung C&T and Hyundai Engineering & Construction While no details of the agreement were revealed, industry watchers said KHNP may have made considerable concessions, such as agreeing to pay royalties in the billions of dollars or sharing future contracts with Westinghouse, as well as committing to joint nuclear export initiatives in third countries.
KHNP and KEPCO have been dividing roles in nuclear export initiatives, with KEPCO handling projects like the Barakah nuclear power plant in the United Arab Emirates and KHNP spearheading the Czech project.
For the Czech project, KHNP has teamed up with Korea Electric Power Corporation Engineering & Construction Co. (KEPCO E&C), KEPCO Plant Service & Engineering Co. (KEPCO KPS), KEPCO Nuclear Fuel, Doosan Enerbility Co. and Daewoo Engineering & Construction Co.
Write to In-Soo Nam at isnam@hankyung.com Joel Levin edited this article.
