Westinghouse in the United States, which fought an intellectual property (IP) dispute with Korea Hydro & Nuclear Power (KHNP) for years before reaching a dramatic settlement in January, is bidding for Poland's new nuclear power plant project. KHNP, which promised Westinghouse during the Czech nuclear bid that it would not pursue future contracts in the European market, cannot take part in this tender.
When the IP settlement became known, some in the nuclear industry painted a rosy outlook that Westinghouse, which lacks the capability to build a large nuclear plant on its own, would team up with Team Korea led by KHNP. But in practice, Westinghouse has been carrying out most nuclear construction with U.S. engineering corporations.
According to the nuclear industry on the 5th, Westinghouse signed an engineering development agreement (EDA) with Polish Nuclear Power Plants (PEJ) earlier this month to build the first nuclear plant in Pomerania Province, Poland. It is a preliminary step to examine detailed plans ahead of signing the main engineering, procurement and construction (EPC) contract to build the plant.
Westinghouse formed a consortium with U.S. engineering corporation Bechtel to compete for Poland's first new nuclear construction and was selected as the contractor in 2022. In September, it received a preliminary construction permit for the nuclear project from the Pomerania provincial government and is carrying out preliminary work such as land surveying, temporary technical facilities and site preparation, and grading. The first plant is slated to begin operation in 2033, and no related orders have been awarded to domestic nuclear equipment corporations such as Doosan Enerbility.
The nuclear industry assesses that Westinghouse lacks the capability to build a large nuclear plant on its own. While it has reactor design and IP, it has not built a new plant in the United States for decades and lacks the capacity and personnel to execute large-scale construction.
Earlier in 2017, Westinghouse halted construction of the VC Summer plant in South Carolina after facing difficulties such as expense overruns and schedule delays. It laid bare Westinghouse's lack of construction capabilities in areas such as construction management, securing the supply chain and cost control.
Thus, if Westinghouse is to build new plants, solid EPC capabilities are needed, raising expectations it would collaborate with Team Korea centered on KHNP. KHNP was chosen as the contractor for the Czech new nuclear project, recognized for its on-time delivery capabilities and price competitiveness. As the IP lawsuits with Westinghouse wrapped up, expectations for "win-win" cooperation grew.
Reality, however, is different from expectations. U.S.-based Westinghouse, the contractor for the first plant, is also aiming for the second plant contract, and experts largely believe it is highly likely to participate by joining hands with U.S. corporations.
Given Poland's geopolitical position bordering Ukraine, building nuclear plants is directly tied to national security. With Russia continuing to threaten European security, the rationale is that having the U.S. government and corporations build nuclear plants in Poland benefits the national interest.
The Polish government is in contact with several foreign corporations to build the second plant, and KHNP is said to have been excluded altogether. Early last month, foreign media reported that KHNP had received an invitation to join competitive talks from the Polish government, but a KHNP official denied it, saying, "That is not true."
KHNP has given up on all new nuclear bids in Europe except for the Czech Republic. Without a request from Westinghouse, reentry will be difficult. Under the IP settlement, KHNP and KEPCO face restrictions on bidding activities for nuclear projects in certain regions, including North America, Europe and Ukraine. In practice, KHNP has withdrawn not only from Poland but also from the European nuclear markets it had been courting, including Sweden, Slovenia and the Netherlands.
Chung Yong-hoon, a professor of nuclear engineering at KAIST, said, "The Polish government is building nuclear plants in consultation with the U.S. government for national security. Considering security, Westinghouse is more likely to continue partnering with domestic corporations rather than foreign corporations."
A nuclear industry official said, "KHNP and Westinghouse have somewhat overlapping roles as prime contractors in nuclear construction projects. If KHNP wins a plant contract, it must work with Westinghouse, but Westinghouse's position is different. That said, opportunities are open for domestic equipment corporations other than KHNP."