According to a comprehensive report by Edaily on the 25th, the U.S. side prefers a plan to apply Westinghouse’s 1.1 GW AP1000 to a large-scale nuclear power project—part of a $350 billion investment project in the U.S.—that will supply power to facilities such as artificial intelligence (AI) data centers. As the U.S. government is pushing forward with a plan to break ground on 10 AP1000 reactors by 2030 and is rebuilding its nuclear power industry centered on its own reactor models and supply chains, it is interpreted that they are attempting to fit South Korea’s investment in the U.S. into the same framework.
The Blue House and the Ministry of Trade, Industry and Energy believe that an AP1000-centered business structure would make it difficult to fully leverage KHNP’s competitiveness. The flagship reactor model that Korea has been able to manage construction costs and schedules through repeated construction projects is the 1,400 MW-class APR1400. It has been applied to Units 3 and 4 of the Shin Kori plant, Units 1 and 2 of the Shin Hanul plant, and the Barakah Nuclear Power Plant in the United Arab Emirates (UAE), among others, and has a proven track record in construction and operation. In 2019, it also received Standard Design Certification from the U.S. Nuclear Regulatory Commission (NRC).
On the other hand, if the AP1000 is adopted, South Korea would struggle to take the lead in nuclear power plant design, supply, and operation, even while providing funding and construction capabilities. While Doosan Enerbility and domestic construction firms could secure contracts for equipment and construction work, Korea Hydro & Nuclear Power (KHNP) risks being relegated to a supporting role in the U.S. nuclear power project.
In terms of capacity alone, the Korean-designed APR1000—which was adopted for the new Dukovany nuclear power plant in the Czech Republic—could also be an alternative. However, the APR1000 lacks a track record of completion and operation, as well as certification from the U.S. NRC. It remains unclear whether the U.S., which seeks an early start to construction, would be willing to accept the risks associated with obtaining new certification and building the first unit. Conversely, while the APR1400 has received NRC certification, its capacity exceeds that of the 1,000 MW-class projects envisioned by the U.S., and it lacks an established local supply chain.
To resolve the conflict of interests between the two sides, compromise solutions such as Westinghouse taking an equity stake or establishing a joint venture have been discussed. However, securing an equity stake does not guarantee that KHNP will be involved in management or win the contract. Large-scale nuclear power plants take around 10 years to reach commercial operation, and there are significant risks of cost overruns and construction delays. There are concerns that unless the share of responsibility and liability for losses by Korean companies are clearly defined in advance, Korea could end up providing the capital and assuming the risks while merely bolstering the U.S. nuclear power ecosystem.
An industry official familiar with the matter stated, “While the APR1400 is the reactor model in which Korea is most competitive, there are aspects that do not align with the requirements of the project being considered by the U.S. side,” adding, “If the project proceeds as a 1,000 MW-class facility, there may be limitations to KHNP playing a leading role.”
▷Glossary
AP1000 and APR1400 are pressurized water reactors developed by Westinghouse of the U.S. and Korea Electric Power Corporation (KEPCO) and Korea Hydro & Nuclear Power (KHNP), respectively. The AP1000, a 1,100 MW-class reactor, has been deployed at the Vogtle Nuclear Power Plant in the U.S., among others, while the APR1400, a 1,400 MW-class reactor, has been deployed at nuclear power plants in South Korea and the Barakah Nuclear Power Plant in the UAE. While the U.S. prefers the use of the AP1000 for investment projects in the U.S., South Korea is calling for the use of the APR1400 and KHNP’s leading role in the project.