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Nuclear energy

South Korea's KHNP Withdraws from Polish NPP Project Amid Intellectual Property Dispute

Strategic Insights

— 2 min read

The Korea Hydro & Nuclear Power (KHNP) company has withdrawn from a Polish nuclear power plant (NPP) project following its settlement with US-based Westinghouse Electric Company in January. The company's president, Whang Joo-ho, stated that KHNP effectively withdrew from the project due to Poland's decision to proceed with a government-led project instead of a state-owned enterprise-led project. This marks the fourth time KHNP has withdrawn from a European market since the settlement, following bids in Sweden, Slovenia, and the Netherlands.

Key Takeaways:

  • KHNP withdrew from the Polish NPP project due to Poland's decision to proceed with a government-led project.
  • The company's withdrawal follows its settlement with Westinghouse Electric Company in January, which reportedly involved significant concessions, including paying royalties and sharing future contracts.
  • KHNP ceded leadership of nuclear projects in Europe as part of the settlement, limiting its ability to bid on European NPP projects.
  • The company is now restricted from entering the nuclear markets of European Union member states (except the Czech Republic), North America, the United Kingdom, Japan, and Ukraine.
  • KHNP agreed to sign contracts for goods and services worth $650m with Westinghouse for each export of a single nuclear reactor and pay an additional $175m per reactor in technology licensing fees.
  • The 50-year deal contains provisions requiring Westinghouse to verify the technical independence of Korean companies before they can bid on overseas nuclear reactor projects.

Statistics:

  • KHNP has withdrawn from four European NPP projects since its settlement with Westinghouse Electric Company.
  • The company is restricted from entering the nuclear markets of 11 countries, including European Union member states, North America, the United Kingdom, Japan, and Ukraine.
  • KHNP agreed to pay Westinghouse $175m for each nuclear reactor exported and sign contracts for goods and services worth $650m.
  • The 50-year deal restricts KHNP's ability to bid on European NPP projects.

Sources:

  • Global Data Point, "South Korea's KHNP Withdraws from Polish NPP Project Amid Intellectual Property Dispute".
  • The Korea Economic Daily, "KHNP settles intellectual property dispute with Westinghouse, pays royalties and shares future contracts".
  • The Seoul Economic Daily, "KHNP agrees to sign contracts worth $650m with Westinghouse per export of a single nuclear reactor".
  • The Korea Herald, "Industry insider claims Westinghouse lacks independent nuclear construction capacity, relies on Korean companies".
  • Korea JoongAng Daily, "Cooperating with Westinghouse can benefit Korea's nuclear ecosystem".
  • Presidential spokesperson Kang Yoo-jung, "Presidential office orders Ministry of Trade, Industry & Energy to investigate controversy surrounding contract between KHNP and Westinghouse".

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