After Korea Hydro & Nuclear Power (KHNP) signed the final contract in June on the $26 trillion won Czech Dukovany nuclear power project, a trickle-down effect for corporations under the "Team Korea" banner has begun in earnest. Following KEPCO E&C, the first mover, signing a service contract worth over 1 trillion won with KHNP, Doosan Enerbility signed a contract to supply major equipment worth over 5 trillion won. Next year, Daewoo E&C and Czech corporations are expected to report a string of contract wins.
KEPCO E&C disclosed on the 12th that it signed a comprehensive design service contract with KHNP for Units 5 and 6 of the Czech Dukovany nuclear plant worth 1.25 trillion won. This is the first time a domestic corporation has disclosed contract details related to the Czech Dukovany nuclear project. On the 16th, Doosan Enerbility signed a contract with KHNP to supply major nuclear equipment worth 5.6 trillion won.
Under the Czech nuclear project, the ordering party, Dukovany II Nuclear Power Plant (EDU II), signs a master contract with KHNP that includes engineering, procurement and construction (EPC), and KHNP will manage the entire project. The KHNP contracts will proceed in the following order: nuclear comprehensive design (KEPCO E&C) → major equipment supply (Doosan Enerbility) → construction (Daewoo E&C, Doosan Enerbility) → auxiliary equipment supply (expected to be Czech local corporations) → nuclear fuel supply (KEPCO NF) → maintenance during commissioning (KEPCO KPS).
KEPCO E&C, the first contractor, is the only company in Korea with comprehensive nuclear plant design technology. It took on comprehensive design, including the reactor system at the core of the Czech plant and all systems. The Korean standard reactor model designed by KEPCO E&C (APR1400) has already proven its technical prowess and safety at the Barakah plant in the UAE. The Dukovany plant in the Czech Republic will build the APR1000 model.
Doosan Enerbility will manufacture and supply to the Czech plant the reactor, steam generator, turbine generator and other core power equipment of a nuclear plant. It plans to raise the localization rate by producing turbine generators at its Czech subsidiary Doosan Škoda Power.
The nuclear construction contract is expected to be signed in the first quarter of next year. Daewoo E&C will serve as the lead contractor for construction, and Doosan Enerbility will handle installation construction for major equipment. The total project cost is estimated to be in the 10 trillion won range. With the construction contract added to the major equipment supply, Doosan Enerbility will accumulate close to 10 trillion won in orders from the Czech plant alone.
For auxiliary nuclear equipment, bid notices are expected to be issued sequentially from the second half of next year. Auxiliary equipment refers to various materials such as pumps, piping and valves, excluding major equipment. Czech corporations are highly likely to supply auxiliary equipment. While technical barriers make it difficult for local corporations to manufacture and deliver major equipment, auxiliary equipment is feasible.
The Czech government has consistently asked for a 60% localization rate during the nuclear construction process to develop its domestic industry. KHNP has also held multiple briefings for local corporations seeking to supply parts in order to raise the localization rate.
The Dukovany plant aims to start commercial operation of Unit 5 in 2036 and Unit 6 in 2038 after construction begins in 2029. A KHNP official said, "We are also preparing to sign contracts for construction, fuel and commissioning maintenance. However, the schedule order is not fixed for each contract."
Director General Lee Sang-heon of iM Securities said, "A strength of domestic nuclear construction is completing projects within the set schedule and budget, 'on time, on budget.' The Czech nuclear contracts are also proceeding in sequence. If the U.S. nuclear market opens, domestic corporations are highly likely to win additional orders based on Korea-U.S. cooperation."