A massive project is in the works to construct up to eight large nuclear power plants in the United States as a follow-up to the U.S.-Korea investment negotiations. The total project cost is estimated at approximately 120 billion USD. Reports indicate that the negotiation table includes plans to apply both Westinghouse’s AP1000 and Korea’s APR1400 reactor designs. Initially, the U.S. demanded all eight reactors use the AP1000 design, but the two countries have reportedly reached a preliminary agreement to build two of the reactors using the APR1400 design.
This negotiation may extend beyond nuclear plant construction to explore equity and business cooperation with Westinghouse. If Korea provides substantial funding and construction expertise to the U.S. nuclear market while redefining its technology and intellectual property (IP) relationships with Westinghouse, analysts suggest this could alleviate the ‘IP constraints’ that have previously limited Korea’s nuclear exports, potentially boosting its global competitiveness.
Eight Reactors at 120 billion USD… Preliminary Agreement on Two APR1400 Reactors Alongside AP1000
According to political sources and relevant departments on Wednesday, the U.S. and Korea are coordinating plans to build up to eight new large nuclear power plants in the U.S. This project follows the Texas-based gas combined cycle power plant, which was selected as the first U.S. investment project. The overall project scale is estimated at around 120 billion USD.
Initially, the U.S. sought to apply the AP1000 design to all eight reactors. However, during negotiations, discussions arose about incorporating the Korean APR1400 design. Reports now indicate a tentative agreement to build two of the eight reactors using this Korean technology.
This development holds significant implications for Korea’s entry into the U.S. nuclear market. The APR1400 is a large reactor design that Korea has independently developed and operated. If construction moves forward in the U.S., it could positively influence the expansion of Korea’s global nuclear export market.
The remaining reactors are likely to utilize the AP1000 design, suggesting a combination of U.S. nuclear technology and Korea’s construction expertise.
However, at this stage, the final scale of the eight-reactor project and the investment amount have not been confirmed. Specific details regarding the site, operators, construction start date, final design composition, investment methods, and actual funding amounts will require further negotiations.
Negotiations Also Include Potential Westinghouse Share Acquisition… Will Nuclear Export IP Constraints’ Be Eased?
Alongside the construction of the eight reactors, attention is focused on the cooperation structure with Westinghouse.
Reports suggest that during the U.S. investment negotiations, the U.S. proposed that Korea acquire shares in Westinghouse. While the Ministry of Trade, Industry and Energy denied plans for joint investment in Westinghouse shares, industry interest remains high regarding the potential for U.S.-Korea cooperation to redefine their relationship with Westinghouse.
Currently, Brookfield, a Canadian private equity firm, holds 51% of Westinghouse, while uranium company Cameco owns 49%. Westinghouse occupies a critical position in the U.S. nuclear industry due to its ownership of the core technology for the AP1000 and its initial design capabilities.
Korean companies, on the other hand, excel in the design, procurement, construction, and project management of large nuclear plants. From the U.S. perspective, combining Westinghouse’s technical capabilities with Korea’s funding and construction expertise could accelerate the revitalization of its nuclear industry.
For Korea, collaborating with Westinghouse could mean more than just participating in U.S. nuclear projects. Throughout Korea’s nuclear export efforts, issues surrounding Westinghouse’s core technology and intellectual property have consistently posed challenges.
Following the export of nuclear technology to the Czech Republic last January, Korea Hydro & Nuclear Power and Korea Electric Power Corporation reached a long-term agreement with Westinghouse regarding nuclear exports, seemingly resolving previous conflicts. However, details of that agreement remain undisclosed. Some reports suggest that the terms favored Westinghouse, sparking debates about a potentially unfavorable contract.
As the U.S. nuclear industry expands significantly and Korea becomes involved, addressing existing technology usage and intellectual property issues will again become crucial negotiation topics.
If Korea secures substantial rights related to nuclear technology and business through investments in Westinghouse or collaborative projects, it could potentially expand its operational scope in future third-country nuclear exports.
The crux of this nuclear negotiation hinges on whether Korea will participate merely as an investor providing funding and construction capabilities or solidify its role as a key partner in the U.S. nuclear industry through the supply of APR1400 reactors and collaboration with Westinghouse.
An industry insider noted that the U.S. needs to secure both large-scale projects and technical capabilities to rebuild its nuclear industry, while Korea requires access to the U.S. nuclear market and an expansion of its technology and business rights. If the construction of the eight reactors is confirmed as a follow-up project, discussions about shareholding, business rights, and intellectual property issues with Westinghouse may take place.
Reports suggest that the U.S. and Korea are coordinating plans to announce a memorandum of agreement regarding U.S. investments around September 18. The extent to which the construction of the eight reactors, the application of two APR1400 reactors, and the cooperation with Westinghouse will be included in the final agreement remains a key point of interest.
The Alaska liquefied natural gas (LNG) project, which the U.S. has requested participation in, is also being considered as a follow-up investment candidate. However, the eight-reactor project, requiring significant funding, is increasingly likely to become the central focus of subsequent U.S. investments.
