Korea Hydro & Nuclear Power Approaches Final Stage to Secure El Dabaa Nuclear Power Plant Project in Egypt

Sole Negotiation Candidate Likely to Win Order
First Trillion-Won Scale Project Participation Since 2008 UAE Barakah Nuclear Plant
If Contract Secured, Hyundai and Doosan to Construct...New Breakthrough Expected for Domestic Nuclear Industry Previously in Decline

[Sejong=Asia Economy Reporter Kwon Haeyoung] Korea Hydro & Nuclear Power (KHNP) is expected to participate in the construction project of four units of the El Dabaa Nuclear Power Plant in Egypt, being built by the Russian nuclear company JSC ASE. This marks the first time since the 2008 UAE Barakah Nuclear Power Plant project that a company is involved in a nuclear export project worth trillions of won.

According to KHNP on the 7th, it is negotiating exclusively with JSC ASE on the contract to construct turbine buildings and other facilities for the El Dabaa plant. Both parties plan to finalize negotiations on key contract terms such as price by next month and sign the contract by the end of April this year. Although additional negotiations remain, the project award is highly likely if no special issues arise.

The El Dabaa nuclear project was awarded in 2017 by Egypt's Nuclear Power Plants Authority (NPPA) to JSC ASE, a subsidiary of the Russian state-owned nuclear company Rosatom. The project involves an investment of $30 billion (approximately 35 trillion won) to build four 1200-megawatt (MW) 'VVER-1200' reactors. Construction is set to begin in earnest this year, with the first unit targeted for commercial operation in 2028.

KHNP is negotiating exclusively with JSC ASE regarding participation in secondary system projects such as turbine buildings. This accounts for 5-10% of the total project, with the scale estimated to be at least several trillion won. Notably, Russia highly evaluated KHNP’s capabilities, having constructed the Barakah nuclear plant in the UAE, which has a desert terrain similar to El Dabaa, and proposed its participation. The Barakah plant was the first nuclear power plant exported by Korea, with its first unit successfully commencing commercial operation in April last year. KHNP has proven domestic nuclear technology through Barakah and has been striving to participate in new nuclear projects such as El Dabaa based on that experience. KHNP President Jung Jae-hoon visited Egypt in March last year and signed a cooperation agreement with Petrojet, a local construction public enterprise, to secure a foundation for project participation.

A KHNP official stated, "If we win the contract for the El Dabaa nuclear power plant construction project, not only domestic nuclear construction companies but also nuclear equipment suppliers will participate, bringing new vitality to the nuclear industry." He added, "Based on the experience and project execution capabilities proven in the domestic and UAE Barakah nuclear projects, we plan to promote cooperation with Egyptian local companies, which are introducing nuclear power for the first time."

The nuclear industry expects this to breathe new life into the domestic nuclear ecosystem, which has been on the brink of collapse due to the current government's nuclear phase-out policy. If the El Dabaa construction contract is signed, Hyundai Engineering & Construction and Doosan Heavy Industries & Construction will be responsible for construction, with domestic companies supplying equipment.

Some voices argue that, given the halt of new domestic nuclear construction projects such as Shin Hanul Units 3 and 4, Korea should consider including nuclear power in the Korean Green Taxonomy (K-Taxonomy) to expand export markets. The financial sector uses the green taxonomy as a guideline for financial support and investment, but the Ministry of Environment recently excluded nuclear power. Previously, KHNP requested the Ministry of Environment to include nuclear power in the green taxonomy to ensure fair competition conditions with major competing countries in nuclear exports, but the request was rejected. Since financing is one of the most critical factors in nuclear exports, there are concerns that the domestic nuclear industry may face difficulties in securing financial resources in the future.

This content was produced with the assistance of AI translation services.