As the domestic nuclear power plant decommissioning market is expected to open up significantly, selection of the "Gori nuclear plant large waste disposal service contractor," seen as a "preliminary skirmish," is being delayed. Korea Hydro & Nuclear Power Co. (KHNP), the ordering party, selected the KEPCO KPS consortium as the preferred negotiation partner, but it is said to have found problems during the review and begun additional examination. The company that clinches this contract is expected to gain experience in handling large equipment and secure a favorable position in future bids for decommissioning work.
According to the power generation industry on the 10th, Korea Hydro & Nuclear Power Co. (KHNP) in Mar. selected the KEPCO KPS consortium as the preferred negotiation partner for the "Gori headquarters large waste disposal service." As a result of the bid opening, the KEPCO KPS consortium submitted about 21.8 billion won, 1.4 billion won lower than competitor Doosan Enerbility (about 23.2 billion won).
Usually it takes about a month from selection of the preferred negotiation partner to the final contract. However, the review period has been far exceeded, drawing attention to the reasons. According to the nuclear industry, parts that differed from the facts were found in materials submitted by the KEPCO KPS consortium, which is said to be delaying the contract decision.
Some suggest the current paperwork issue could constitute grounds for disqualification. If wrongdoing is proven, disadvantages could follow in the next bid participation and consortium formation.
The KEPCO KPS consortium consists of KEPCO KPS, Hyundai Engineering & Construction, and Orbitech. Some of them are reportedly engaged in a dispute over responsibility regarding the erroneous portions.
This project is worth about 20 billion won, on the smaller side among KHNP-ordered projects. corporations in the consortium are said to have joined the bid despite poor profitability. The judgment is that securing performance records now would be advantageous in next year's competition for decommissioning contracts.
At KHNP, high-risk processes such as dismantling facilities in radiation-controlled areas related to the Gori Unit 1 decommissioning are scheduled to be ordered sequentially, and these are worth hundreds of billions of won.
This large waste disposal project at the Gori nuclear plant involves cutting, volume reduction, and packaging of large waste, including two reactor heads and two steam generators replaced in the past at Gori Units 1 and 2.
A reactor head is equipment that seals the reactor to block the release of radioactive materials. A steam generator is primary equipment that produces steam using the reactor's heat. Because these are facilities with potential contamination, expertise is required during dismantling. Handling experience effectively serves as proof of corporations' technological capabilities.
Gori Unit 1, Korea's first nuclear power plant, received its first decommissioning approval in Jun. last year. Since then, the project has proceeded with KEPCO KPS and Doosan Enerbility as the two main pillars. System decontamination, a preliminary step to decommissioning, is being carried out by KEPCO KPS, and the next step, dismantling in non-radiation-controlled areas, is being performed by the Doosan Enerbility consortium.
Dismantling in non-radiation-controlled areas will be completed by 2028, and once spent nuclear fuel is removed by 2031, the sequence will proceed to reactor and radiation-controlled area dismantling (2031–2036), followed by site restoration and regulatory release (2037). The total project cost is estimated at 1.0713 trillion won (808.8 billion won for decommissioning work and 262.5 billion won for waste disposal).
A KHNP official said, "Negotiations are underway before signing the contract, and since the contractor has not been finalized, it is difficult to disclose specific negotiation details."