Hyundai E&C wins $2.4 bil. contract to build 2 nuclear reactors

Hyundai E&C CEO Yoon Young-joon, second from right, poses with Korea Hydro & Nuclear Power (KHNP) CEO Whang Joo-ho, second from left, after signing a contract to construct the Shin-Hanul reactors 3 and 4 at the latter’s office in Seoul, Friday. Courtesy of KHNP

A Hyundai E&C-led consortium won a 3.1 trillion won ($2.4 billion) contract with Korea Hydro & Nuclear Power (KHNP) to build Shin-Hanul reactors 3 and 4 in Uljin, North Gyeongsang Province, according to the construction company, Monday.

The project will build the two reactors, each with a power generation capacity of 1,400 megawatts. The construction period will be approximately 115 months from the start date.

Hyundai E&C formed a consortium with Doosan Enerbility and POSCO E&C to participate in the project. As the main contractor, Hyundai E&C will receive 1.7157 trillion won, which is 55 percent of the total.

The Hyundai E&C-led consortium competed in a bidding competition against consortiums formed by Samsung C&T and Daewoo E&C. Earlier this month, KHNP announced that the Hyundai E&C consortium received the highest score in a comprehensive review and therefore it was selected as the successful bidder.

The resumption of new nuclear power plant construction has drawn keen attention in related industries. The last construction order was made eight years ago in 2015, when the country placed orders for Shin-Kori reactors 5 and 6. Since then, no new construction orders have been made due to the previous Moon Jae-in administration's nuclear phase-out policy.

Since constructing the country’s first nuclear reactor, the Kori 1, in 1970, Hyundai E&C has set milestones for the most nuclear reactors constructed in Korea and the first export of a nuclear reactor.

"This contract is in recognition of Hyundai E&C’s leading technologies and know-how that have led the nuclear energy sector in Korea for half a century," a spokesperson of Hyundai E&C said.

Nuclear power has emerged as a core player in the clean energy transition at a time when countries, especially European ones, clamp down on achieving carbon neutrality goals. Riding on this trend, Hyundai E&C, which has proven its capabilities on the global stage through overseas projects such as the Barakah nuclear power plant in the United Arab Emirates (UAE), plans to accelerate its penetration into Europe.

"We will focus on strengthening the status of the Korean nuclear power industry, which is gaining attention in the era of carbon neutrality, and expanding the global market,” the official said.