KHNP is likely to pay technical advisory fees to Westinghouse to settle dispute over reactor exports to Poland
Poland started an approval process to build a nuclear power plant consisting of South Korean reactors, foreign media reported, despite the ongoing dispute over the Asian country’s export of atomic furnaces between US Westinghouse Electric Corp. and Korea Hydro & Nuclear Power Co. (KHNP).
PGE PAK Energia Jądrowa SA (PPEJ) on Aug. 17 submitted an application to Poland’s Ministry of Climate and Environment for a decision-in-principle on the construction of a nuclear power plant consisting of at least two APR-1400 reactors supplied by South Korean companies in central Poland, according to media such as World Nuclear News.
PPEJ is a 50-50 joint special purpose vehicle between Poland’s state-run power company Polska Grupa Energetyczna (PGE) and private firm Zespol Elektrowni Patnow-Adamov-Konin (ZE PAK), which signed an initial agreement for the nuclear plant with KHNP in October 2022.
The decision-in-principle is the first step of the government’s permission to build a nuclear power plant. Only authorized companies can apply for further approval for other processes such as site selection and construction.
PPEJ aims to secure the environment ministry’s approval in 90 days and proceed with follow-up measures for commercial operations of the nuclear plant from 2035.
KNHP TO SETTLE DISPUTE WITH WESTINGHOUSE
KNHP has yet to start basic works for the nuclear plant such as a feasibility study since the wholly-owned subsidiary of Korea Electric Power Corp. (KEPCO) inked a letter of intent with PGE and ZE PAK.
That came due to the dispute between KHNP and Westinghouse, which filed complaints against the South Korean nuclear and hydroelectric plant operator, as well as its parent in a US court last year to block exports of reactors to Poland.
Poland was seen as so determined to import South Korean reactors that the government began an administrative process despite the issue, nuclear experts in the Asian country said.
“Poland’s start of the process is a pressure on Westinghouse to quickly conclude arbitration with KHNP and cooperate on the construction of the nuclear plant,” said Jeong Yong Hoon, a nuclear engineering professor at Korea Advanced Institute of Science and Technology. Westinghouse was selected for the country’s first nuclear power plant project.
They are likely to end the battle with a potential payment of technical advisory fees by KHNP to Westinghouse, industry sources in Seoul said.
Source: Korean Economic Daily
