Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
Korea wins $2.25 bil. nuclear power plant deal in Egypt
Whang Joo-ho, fifth from left, CEO of Korea Hydro & Nuclear Power (KHNP), poses with Alexander Korchagin, senior vice president of ASE JSC, sixth from left, after signing a contract to join an Egyptian nuclear power plant construction project, in Cairo, Egypt, Thursday. Courtesy of KHNP
By Baek Byung-yeul
Nation secures 2nd nuclear plant export order after Barakah reactors in UAE
By Baek Byung-yeul
Korea won a 3 trillion won ($2.25 billion) project to construct nuclear power plants in El Dabaa, Egypt, a much-awaited contract for the government, which has been trying to restore nuclear plants as a major export item, the industry ministry said Thursday.
The El Dabaa project will see four 1,200-megawatt nuclear reactors being built. For the project, ASE, a subsidiary of Russian energy company Rosatom, won the construction order from the Egyptian Nuclear & Radiological Regulatory Authority.
The Ministry of Trade, Industry and Energy said state-run energy company, Korea Hydro & Nuclear Power (KHNP), signed a contract with ASE to construct turbine islands and procure and supply equipment and materials for the key components, which extract thermal energy from pressurized steam and convert it into electrical energy.
The El Dabaa project marks Korea's second nuclear power plant export. In 2009, the nation won the Barakah nuclear power plant construction project in the United Arab Emirates.
Due to the previous administration's nuclear phase-out policy, Korea's nuclear industry was on the verge of extinction. But the government said it expects the El Dabaa project to revitalize the nuclear plant industrial ecosystem.
In May, President Yoon Suk-yeol said the country aims to export 10 nuclear power plants by 2030, scrapping the previous administration's nuclear phase-out policy.
A senior official from the presidential office said the Egyptian contract is expected to become a welcome opportunity for Korea's struggling nuclear power plant industry.
“The contract created a valuable precedent of entering the African nuclear power market that has great growth potential. The experience we will earn in Egypt will serve as a bridgehead to the African market,” the official said on condition of anonymity.
Lee Chang-yang, minister of trade, industry and energy, said winning the contract in Egypt was possible thanks to the government's drive to bring the nuclear power generation sector back as one of the country's core industries.
“Winning the El Dabaa nuclear power plants project is the first tangible achievement of the Yoon Suk-yeol administration's strong nuclear power export policy,” Lee said. “Under the new government's energy policy direction, introduced on July 5, the change in nuclear power policy and the strong will to promote exports contributed to the successful signing of the contract.”
The minister added that the government will keep working to win additional contracts in other countries such as the Czech Republic and Poland.
“As many countries like the Czech Republic and Poland are closely evaluating the excellence of our nuclear power plants, the government will gather all of its capabilities to support nuclear power exports,” the minister said.
A rendered image shows four nuclear power plants that Korea Hydro & Nuclear Power (KHNP) will construct in El Dabaa, Egypt. Courtesy of KHNP
KHNP said it plans to hold a briefing for local nuclear power-related companies in September to facilitate the participation of domestic nuclear equipment manufacturers in the construction of El Dabaa. The company added it will push ahead with contracts for all equipment as soon as possible.
“Winning the order for the construction project in El Dabaa is an important achievement that has proven Korea's excellent construction capabilities and business management capabilities from the UAE project,” said Whang Joo-ho, CEO of KHNP.
Construction of the nuclear reactor building of the first unit of the El Dabaa project began in July. The first unit is expected to begin commercial operations in 2028.