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As Crown Prince Mohammed bin Salman (photo), the de facto ruler of Saudi Arabia, prepares to visit South Korea on the 17th, expectations for orders in the nuclear power industry are gradually emerging. This comes amid prospects that discussions could expand from the development of ‘Neom City,’ Saudi Arabia’s eco-friendly future city project, to nuclear power plant construction projects. Saudi Arabia highly values South Korea’s nuclear technology, and with the Yoon Suk-yeol administration’s pledge to export 10 nuclear reactors overseas by 2030, government support has been strengthened, raising the possibility that negotiations for Saudi nuclear power plant orders could accelerate rapidly.

According to the energy industry on the 16th, the 12 trillion won-scale Saudi nuclear power plant construction project has been narrowed down to a two-way competition between Korea Electric Power Corporation (KEPCO) and Russia’s state-owned nuclear company Rosatom. Earlier in May, the Saudi government sent requests for bids to South Korea, Russia, France, and China for the construction of two nuclear reactors with a capacity of 1.4GW each, gauging their willingness to participate in the project.

Saudi Arabia particularly cited South Korea’s construction of the Arab world’s first commercial nuclear power plant, the Barakah Nuclear Power Plant, built in the UAE desert in 2009, as a model technology optimized for the Middle East. At that time, South Korea signed a nuclear power export contract with the UAE and completed four Korean-designed reactors (APR1400) worth $18.6 billion (approximately 22 trillion won). Ahead of Crown Prince bin Salman’s visit, earlier this month, Minister of Trade, Industry and Energy Lee Chang-yang and Saudi Energy Minister Abdulaziz, the Crown Prince’s elder brother, held a video conference to discuss cooperation in the energy sector between the two countries, which was a positive sign. This meeting was arranged at Saudi Arabia’s request and was the first in four months since June. If KEPCO wins the Saudi nuclear power plant order, South Korean companies are also expected to benefit. Companies such as Doosan Enerbility, specializing in nuclear power and power generation equipment, KEPCO Engineering & Construction, a power plant design company, and KEPCO KPS, which handles power transmission and distribution facility maintenance, are among those anticipated to gain.

The variable is the relationship between the United States and Saudi Arabia. Last year, the biggest obstacle was the agreement between South Korea and the U.S. to export nuclear power plants only to countries that have joined the International Atomic Energy Agency (IAEA) Additional Protocol. The IAEA Additional Protocol enforces IAEA inspection rights over undeclared nuclear facilities, and Saudi Arabia is reluctant to join it to counter Iran’s nuclear development. This means South Korea must consider the U.S. stance during the nuclear power plant contract process with Saudi Arabia. The U.S. may insist on applying Section 123 of the U.S. Atomic Energy Act, claiming that the Korean-designed APR1400 nuclear reactor uses U.S. proprietary technology. Section 123 requires countries receiving U.S. nuclear technology to obtain prior approval from the U.S. government and Congress for uranium enrichment and related activities. Without U.S. consent, exporting Korean nuclear reactors to Saudi Arabia could become difficult.

However, there is also a possibility of cooperation with the U.S. to secure the Saudi nuclear power plant order, leveraging the Korea-U.S. nuclear alliance. This is particularly seen as a potential U.S. alternative to prevent the nuclear power plant construction from going to Russia, a competing bidder. Meanwhile, Crown Prince bin Salman’s visit is also expected to open cooperation opportunities with South Korean companies in renewable energy sectors such as ESS (Energy Storage Systems). An energy industry official said, "The U.S. needs to improve relations with Saudi Arabia to counter China’s expansion in the Middle East," adding, "South Korea’s success in securing the Saudi nuclear power plant order could be a tangible outcome of the Korea-U.S. alliance."

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