South Korea wins €1.9 billion nuclear renovation deal in Romania

* South Korea steps into nuclear renovation market with Cernavoda project   South Korea has clinched a €1.9 billion ($2 billion) contract to renovate a nuclear power plant in Romania, marking a pivotal achievement in its growing presence in the global nuclear energy market.   This project, the first overseas nuclear reactor refurbishment awarded to South Korean companies, follows major nuclear power construction orders from Egypt in 2022 and Bulgaria earlier this year. Additionally, a South Korean consortium led by Korea Hydro & Nuclear Power (KHNP) was selected in July as the preferred bidder to build new nuclear reactors in the Czech Republic in a $17.1 billion deal.   On Dec. 19, KHNP announced it had signed a final agreement with Romania’s state-run Societatea Nationala Nuclearelectrica (SNN) in Bucharest to upgrade Unit 1 of the Cernavoda Nuclear Power Plant. The €1.9 billion project will allocate 40% of the work—amounting to €840 million ($910 million)—to KHNP. The consortium also includes Canada’s Candu Energy and Italy’s Ansaldo Nucleare, which joined forces in October 2023.   Construction is scheduled to begin in February 2025 and is expected to take approximately five years and five months. Leading South Korean companies, including KEPCO KPS, Doosan Enerbility, Hyundai Engineering & Construction, and Samsung C&T, will participate in the project, providing expertise in construction and equipment manufacturing.   “This contract is expected to create a ripple effect, benefiting small and medium-sized nuclear companies and helping to revitalize South Korea’s nuclear energy ecosystem,” said Moon Joo-hyun, a professor at Dankook University. The renovation aims to extend the operational life of the 706 MW heavy water reactor, which began commercial operation in 1996, by an additional 30 years. Romania’s regulatory authorities approved the plant’s extended operating license in May 2023, with a goal to restart operations by 2030.   KHNP’s extensive experience with heavy water reactor construction and maintenance, gained over four decades at the Wolseong Nuclear Power Plant in South Korea, was instrumental in securing the contract. According to Moon Joo-hyun, a professor at Dankook University, “Heavy water reactor renovation projects are more challenging than building new reactors, as they require replacing outdated equipment with new systems. South Korea proved its expertise during the Wolseong Unit 1 renovation.”   Under the consortium agreement, Candu Energy will oversee pressure tube design, while Ansaldo Nucleare will manage turbine designs and equipment supply. KHNP will handle critical tasks, including the replacement of pressure tubes and the construction of facilities for radioactive waste storage.   KHNP emphasized the rigorous negotiations leading up to the deal, noting that the consortium held monthly in-person meetings with SNN for over a year to finalize project costs, conditions, and schedules.   South Korea’s efficiency in heavy water reactor projects has been widely recognized. During the Wolseong Unit 1 renovation in 2009, KHNP completed the project in just 27 months, significantly faster than Canada’s 46 months and Argentina’s 37 months for similar undertakings.   “This experience will also support ongoing domestic efforts, such as extending the operational life of Wolseong Units 2-4,” said Roh Dong-seok, executive director at the Korea Energy Information Culture Agency.   With global demand for power generation rising due to the expansion of electric vehicles and artificial intelligence, the need for nuclear maintenance is growing. The Cernavoda deal marks South Korea’s first foray into overseas nuclear refurbishment projects, opening doors to diversified nuclear exports.   Chung-Ang University professor Jeong Dong-wook noted the potential for further contracts from countries operating heavy water reactors, including Romania and Argentina. “South Korea has already proven its capabilities with light-water reactors in markets like the UAE and the Czech Republic. Now, even Canada, the originator of CANDU technology, acknowledges our excellence in heavy water reactor projects,” Jeong said.