South Korean nuclear energy stocks surged after Korea Hydro & Nuclear Power Co. was chosen to build two reactors in the Czech Republic, beating out French and US rivals for the multibillion dollar project.
Shares in KEPCO Engineering & Construction Co., which is owned by KHNP’s parent Korea Electric Power Corp (KEPCO), rose as much as 28% during morning trade on Thursday, while Korea Electronic Power Industrial Development Co. jumped by the daily limit of 30%.
The Czech Republic picked KHNP over Electricite de France SA on Wednesday, paving the way for the Korean company to negotiate contract terms with Czech officials and majority state-owned utility CEZ AS. The project will start with two reactors, at a construction cost of $8.6 billion each, at the European nation’s Dukovany complex, with a potential option for another two at the Temelin facility.
The Czech Republic is betting on nuclear energy as a key part of its plan to wean itself off coal, as well as Russian oil and gas. The government has pledged financial support to help CEZ build at least one large reactor that would start replacing its aging Soviet-era nuclear units.
Source: BNN Bloomberg