As Korea Hydro & Nuclear Power (KHNP) struck a contract to build a new nuclear power plant in the Czech Republic, its Team Korea nuclear power partners have begun preparations to supply major equipment to the project.
KHNP is to sign supply agreements with Korean companies in each sector.
Doosan Enerbility, responsible for supplying the main equipment, will supply steam turbines from the European country.
The remaining equipment and components will be supplied from Korea. About 300 Korean nuclear power parts companies are expected to simultaneously enter the market.
Doosan Enerbility’s annual operating profit could surge as much as 200 billion won from the 8,548 billion won project.
Business sources said on June 5 that KHNP plans to strike subcontract deals with Team Korean partners in each sector following a kick-off meeting with Dukovany II Nuclear Power Plant (EDU II), the project owner.
KHNP will supply two Korean nuclear reactor APR1000 units in the Dukovany area.
The power company plans to carry out the construction process for Dukovany Nuclear Power Unit 5, whose construction is scheduled to be launched in 2029.
KHNP will implement the entire EPC, commissioning, and nuclear fuel supply scope of the project by teaming up with Team Korea partners: KEPCO E&C (design), Doosan Enerbility (major equipment and construction), Daewoo E&C (construction), KEPCO NF (nuclear fuel), and KEPCO KPS (commissioning and maintenance).
Under the deal, Doosan Enerbility will supply to the new Dukovany nuclear power units steam turbines, to be produced by Doosan Škoda Power in the Czech Republic.
The company will produce and supply the remaining equipment, such as reactors and steam generators from Korea.
A steam turbine is a device that converts the thermal energy of steam into mechanical work.
It has a concept of using nuclear fuel to boil water for nuclear power units and utilizing coal for coal-fired plants.
Doosan Škoda Power, with an over 150 year history, has already supplied 26 steam turbines for nuclear power plants in the Czech Republic, Slovakia and Finland.
The company has so far supplied more than 540 steam turbines to the global power generation market.
Czech President Petr Pavel (2nd from right) looks at the steam turbine, to be supplied to a Czech nuclear power plant, with Sohn Seung-woo, CEO of Doosan Enerbility’s Power Services BG, during his visit to Doosan Skoda Power on March 25. (Photo: Doosan Enerbility)
The Czech government has stressed its own supply chain’s participation in the new nuclear power construction project.
KHNP held two sessions to explain the registration procedure for qualified suppliers, subsidiary device list, quality and technology standards this year.
The Korean government said not only Doosan Enerbility but also 300 Korean nuclear power equipment and materials makers are expected to simultaneously enter the Czech market.
Eugene Investment & Securities Co. said the large-sized Korean nuclear power equipment and materials makers include Hyosung for high-pressure circuit breakers, HD Korea Shipbuilding & Offshore Engineering Co. for HVAC control panels, Hyundai Steel for reinforcing steel and Hanwha Aerospace for mobile generators, and Taihan Cable & Solutions for cables.
The total project cost stands at CZK407 billion (approximately 26 trillion won). Daishin Securities predicted last year that the net construction cost of the Czech project would amount to 19,438 billion won, and Doosan Enerbility would receive 8,548 billion won, accounting for some 44 percent of the total.
The Cech government will initially proceed the construction of the new Dukovany Nuclear Power Units 5 and later determine whether to go ahead with the construction of the new Temelín Nuclear Power Units 3 and 4.
If the Czech Republic gives the go-ahead to the Temelín project within next five years, KHNP will likely strike a contract on the Temelín Nuclear Power Units 3 and 4 through negotiations with the project owner.
Hwang Sung-won, a researcher with Eugene Investment & Securities, said, “The two nuclear power units of the Czech project is forecast to see average annual operating profit rise 50 billion, and Doosan Enerbility is predicted to earn 20 billion per nuclear power plants. If the additional two nuclear power units are counted, the total construction cost is expected to surpass 40 trillion won.”
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