This undated file photo provided by Daewoo Engineering & Construction (Daewoo E&C) shows the Dukovany Nuclear Power Plant in the Czech Republic. The Korean company is part of a consortium led by Korea Hydro & Nuclear Power to build two nuclear reactors at the Dukovany plant. Courtesy of Daewoo E&C
Korea Hydro & Nuclear Power (KHNP) reached an agreement with the U.S. nuclear technology firm Westinghouse to resolve all ongoing intellectual property (IP) disputes related to nuclear power plant technologies that KHNP has been attempting to export to the Czech Republic, the Korean state-run nuclear power technology and plant operator KNHP said Friday.
Korea Electric Power Corp. (KEPCO), a state-run utility that exclusively distributes electricity nationwide,was also a stakeholder in the deal, making it a tripartite agreement.
The agreement has effectively cleared the final obstacle to KHNP's bid to build two nuclear reactors at the Dukovany Nuclear Power Plant in the Czech Republic.
KHNP said the tripartite agreement, signed on Thursday, has "officially resolved the legal conflict over Westinghouse's intellectual property rights."
Westinghouse had previously claimed ownership of the technological intellectual property for the APR1000, a nuclear reactor model planned for the Dukovany plant, asserting that KHNP did not have the right to export it.
“The agreement will serve as an opportunity to set up a closer relationship between KHNP and Westinghouse," KHNP President & CEO Whang Joo-ho said Friday.
KHNP added that the agreement will further strengthen Seoul-Washington ties and enhance its competitiveness in the global nuclear power plant market.
Westinghouse, based in Pennsylvania, said on Thursday (local time) that the agreement will allow the three companies to "move forward with certainty in the pursuit and deployment of new nuclear reactors." It also noted that the agreement "sets the stage for future cooperation between the parties to advance new nuclear projects globally."
Westinghouse President & CEO Patrick Fragman said the company is “pleased to reach an agreement with KEPCO and KHNP on this important issue. As the world demands more firm baseload power, we look forward to opportunities for cooperation to deploy nuclear power at an even greater scale."
Fragman has been leading Westinghouse's legal actions against KHNP. Westinghouse announced earlier this month that he will step down in March from the role he has held for more than five years.
Korea Hydro & Nuclear Power President & CEO Whang Joo-ho gives a welcome speech during a commemorative event for Korea's 14th Nuclear Safety and Promotion Day at JW Marriott Hotel Seoul, Dec. 26, 2024. Yonhap
KEPCO CEO Kim Dong-cheol said the agreement has restored the “traditional partnership between the two countries that has lasted for the past 50 years.” He added that the agreement has “finally opened doors for KEPCO to start pursuing future global project bids for nuclear power plant more aggressively.”
Korea's Minister of Trade, Industry and Energy Ahn Duk-geun joined the celebration on Friday, saying the government welcomes the settlement and hopes it will lead to active exchanges between the countries' businesses in the global nuclear reactor market.
"The agreement has laid the groundwork for the governments and private sectors of both countries to pursue mutually beneficial cooperation in the global nuclear reactor market while adhering to nonproliferation standards," Ahn said.
Cameco, a Canadian uranium mining company in Saskatchewan that owns 49 percent of Westinghouse, also said on Thursday (local time) that the agreement was "positive for both parties, facilitating the introduction of world-leading reactor technology and related expertise in engineering, construction services, maintenance, fuel supply, and training to the global market."
Tim Gitzel, Cameco's president and CEO, stated that while "more than 30 countries and over 100 companies are pledging to triple nuclear capacity by 2050, this agreement strengthens the industry's ability to provide carbon-free, reliable, dispatchable baseload electricity to help achieve climate, energy, and national security objectives."
Details of the agreement will remain confidential and off public disclosure, according to Westinghouse.
The agreement came after the Korean and U.S. governments signed a memorandum of understanding (MOU) in Washington on Jan. 8 (local time) to further cooperate on nuclear energy policies and exports of nuclear technologies.
The industry ministry said the MOU was based on “confidence in each other as comprehensive strategic partners, so it is expected to contribute to promoting reciprocal cooperation between the two countries in the global market.”
The Czech government, following the MOU, welcomed the stronger ties between Korea and the U.S. in the nuclear energy industry.
Czech Industry Minister Lukas Vlcek said on X, “We view this step positively, especially with regard to the Czech project for new nuclear sources in Dukovany.”
The legal dispute, which has lasted for more than two years, began even before the Czech Republic selected KHNP as the preferred bidder for the Dukovany nuclear reactor project in July 2024. Elektrarna Dukovany II, a subsidiary of the Czech Republic's major state-run utility company CEZ Group, issued the project bid in 2022 and shortlisted KHNP and France's EDF as the final bidders.
KHNP and Czech authorities are expected to sign the official contract in March.