US Westinghouse Protests to Czech Government Over KHNP Nuclear Power Plant Contract Award

U.S. nuclear power company Westinghouse has directly raised concerns with the Czech antitrust authorities in protest against Korea Hydro & Nuclear Power's (KHNP) winning of the Czech nuclear power plant construction project. Westinghouse is obstructing the related procedures, claiming that the Korean-type nuclear power plant infringes on its proprietary technology.

On the 26th (local time), Westinghouse stated in a press release, "We have filed a complaint with the Czech Antitrust Office to protest the decision by Czech Electricity Company (CEZ) to select KHNP as the preferred negotiator for the construction of two new Dukovany nuclear reactors."

Westinghouse said, "Participants in the nuclear power plant bidding must prove to the Czech side that they hold the rights to transfer the nuclear technology intended to be provided to CEZ and local suppliers, as well as the rights to grant secondary licenses (patent permissions)." Furthermore, "KHNP's APR1000 and APR1400 reactor designs utilize Westinghouse's patented Generation II System 80 technology," and "KHNP does not own the proprietary technology and does not have the right to allow third parties to use that technology without Westinghouse's permission," it asserted.

Westinghouse has been involved in Korea's domestic nuclear power projects since the construction of Korea's first nuclear power plant, Kori Unit 1, which is now decommissioned, transferring various technologies to Korea. In a sense, it laid the foundation for the Korean-type nuclear power plants exported overseas. However, Korean nuclear power plants have since been localized over several decades. Westinghouse competed against KHNP and ?lectricit? de France (EDF) by promoting its AP1000 reactor to win the Czech nuclear power plant construction project but was eliminated earlier.

In particular, Westinghouse raised the issue with the Czech government while mentioning "jobs in Pennsylvania," a key battleground state in the upcoming November U.S. presidential election. Analysts suggest this may be a strategy to gain political advantage through support from U.S. presidential candidates. Westinghouse claimed, "Introducing the APR1000 reactor instead of the AP1000 reactor not only illegally uses U.S. technology but also exports thousands of clean energy jobs that could be created in the Czech Republic and the U.S. to Korea," adding, "Those jobs include 15,000 jobs in Pennsylvania, where Westinghouse's headquarters are located."

Additionally, Westinghouse stated, "We will continue to vigorously protect our intellectual property rights through ongoing international arbitration and lawsuits within the U.S., while complying with U.S. export control regulations," and it is expected that the arbitration decision will not be made before the second half of 2025. Previously, Westinghouse filed a lawsuit in the U.S. in October 2022 against KHNP, arguing that the nuclear technology Korea intends to export to the Czech Republic and others is Westinghouse's technology and thus subject to U.S. export control regulations. After the case was dismissed by the U.S. Federal District Court in Washington D.C. in September last year, Westinghouse appealed, and the appeal court litigation is currently ongoing.

Westinghouse's direct challenge to the Czech government is interpreted as an attempt to pressure KHNP as much as possible to steer the related dispute favorably while extracting as many concessions as possible from KHNP. For KHNP to finalize the Czech nuclear power plant contract by March next year, it is advisable to notify the U.S. government of the Czech nuclear power plant export, which requires amicably resolving the intellectual property dispute with Westinghouse. Previously, the U.S. Department of Energy rejected KHNP's export notification, stating that the export notification for nuclear power plants should be led by the U.S. company Westinghouse.

Meanwhile, Westinghouse's headquarters were sold after filing for bankruptcy due to management difficulties in 2017, and currently, Canadian private equity firm Brookfield Renewable Partners and Canadian uranium company Cameco hold 51% and 49% stakes, respectively.