A 8 Trillion Won Market Hangs on a 30 Billion Won Nuclear Project... A Do-or-Die Battle for Korean and French Companies

Used Nuclear Fuel Cask Project
KHNP Dry Storage Container Phase 1 Comprehensive Design Bid
Korean Doosan and French Orano Final Competition
Domestic Manufacturers "Concerned About Technology Dependence on Foreign Companies"
KHNP Emphasizes "100% Domestic Materials Reflected in Design"
Orano States "Will Provide Related Technology to KHNP"

Doosan Enerbility is manufacturing casks to be supplied to TMI in the United States. Photo by Doosan Enerbility

Doosan Enerbility of South Korea and France's Orano are in a final competition ahead of selecting the design contractor for the dry storage container project for spent nuclear fuel, which could reach a scale of up to 8 trillion KRW. Some point out that if a foreign company is selected as the design contractor, a huge amount of royalties and material costs could flow overseas in the future. On the other hand, Orano insists that the bidding conditions require the use of domestic materials and technology transfer, and has expressed opposition.

On the 7th, Korea Hydro & Nuclear Power (KHNP) selected Doosan Enerbility and France's Orano as pre-qualified candidates for the comprehensive design service project of the dry storage system for spent nuclear fuel at nuclear power plants, which was announced in July. KHNP plans to receive the lowest price bids by the 20th, conduct technical evaluations, and then select the final contractor.

Currently, spent nuclear fuel (high-level radioactive waste) used in nuclear power plants is stored using a wet storage method, where large pools inside containment buildings are filled with water to shield radiation and forced circulation cooling is maintained through power supply. However, starting with Hanbit Nuclear Power Plant in Yeonggwang, Jeollanam-do in 2030, followed by Kori Nuclear Power Plant (2031), Hanul and Shin-Hanul Nuclear Power Plants (2032), the wet storage systems will sequentially become full, making it impossible to store more waste.

Accordingly, the government and KHNP are promoting a transition to dry storage systems, and related legislation is currently pending in the National Assembly. The dry storage system safely stores high-temperature waste in dry storage containers (casks) on the nuclear power plant site for 33 years, then transfers them to a permanent disposal site 500 meters underground, where they are sealed in permanent disposal casks. During this time, the waste naturally cools. KHNP is promoting an on-site dry storage project within nuclear power plants by establishing a temporary dry storage system until the permanent disposal site is selected.

This bid is for the comprehensive design service of casks for the first phase of the on-site dry storage project. Although the total project cost is only 30 billion KRW, it is attracting attention from nuclear power operators worldwide because it forms the backbone of the upcoming first phase (about 1 trillion KRW) and second phase (2 trillion KRW) projects. Winning the design service contract means playing a key role in the subsequent manufacturing process. The design contractor can effectively control the entire spent nuclear fuel storage project. Industry insiders estimate that including the upcoming interim storage and permanent disposal projects, the domestic dry storage project scale could grow to as much as 8 trillion KRW.

Due to the large market size, many foreign companies showed interest during the bidding process, but only Doosan Enerbility and Orano submitted documents in the pre-qualification evaluation that closed on the 18th of last month. Orano is a state-owned company wholly owned by the French government and has supplied fresh nuclear fuel and uranium ore to KHNP.

Concerns have been raised in the domestic nuclear industry ahead of the final selection of the comprehensive design contractor.

There is a possibility that if a foreign company wins the contract, South Korea may have to rely on foreign technology for dry storage of spent nuclear fuel. There is also concern that new cask manufacturing technologies developed by domestic companies could be sidelined. The Doosan Enerbility Cask New Technology Manufacturers Association issued a statement emphasizing that the bidding should consider national security and national interests.

Yang Jin-su, chairman of the Manufacturers Association, said, "Orano's design model uses its patented materials and manufacturing technology," adding, "In the future, at the time of cask manufacturing, it could monopolize profits through exclusive supply of its patented core materials." Orano is known to manufacture casks using neutron shielding materials for which it holds patents. The association demands that the bidding requirements clearly prevent the design company from demanding additional patent compensation from KHNP or domestic manufacturers in the future.

In response, KHNP stated that the bidding is conducted under the condition that the design contractor transfers patent licenses to KHNP, and that conditions requiring domestic industry protection are specified, so there is no concern about dependency. A KHNP official emphasized, "Bidding companies must design using 100% domestic materials," and "For foreign materials, they must also propose domestic alternatives." KHNP explained that from the second phase onward, they plan to incorporate designs developed independently by their central research institute.

Lee Jae-min, head of Orano TN Korea, said, "The bidding specifications include maximizing the use of domestic materials and providing related technology to KHNP to share with domestic manufacturers," adding, "It is difficult to comment further."

Meanwhile, Doosan Enerbility officially entered the cask business in 2015 by signing a joint development agreement with the US company NAC for spent nuclear fuel storage containers. In 2020, they exported five sets of casks to the Three Mile Island (TMI) Nuclear Power Plant in Pennsylvania, USA, and plan to deliver an additional 14 sets.

▶ What is a Cask?

A cask is a special container used to transport and store spent nuclear fuel discharged from a nuclear power plant reactor after combustion. Depending on its use, it is classified as transport-only, storage-only, or transport-storage combined. The main materials are metal or concrete. It consists of a basket supporting dozens of fuel assemblies, a canister preventing external leakage of radioactive materials, special shielding materials to block radiation, and an outer structural shell.

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