EDF remains hopeful to build Czech reactors – CEO

Source : Montel: EDF remains hopeful to build Czech reactors – CEO https://montelnews.com/news/7b04fa96-1e95-4ada-8f85-cbc71ff9ea07/edf-remains-hopeful-to-build-czech-reactors-ceo

by Caroline Pailliez • 29 July 2024

with Muriel Boselli

EDF’s offer to build two reactors was “still valid, and we remain at the disposal of the Czech authorities,” said CEO Luc Remont.

KHNP’s offer to build the reactors at the 2 GW Dukovany nuclear power plant for about EUR 16bn was the most attractive and reliable in terms of price, cost control and schedule, Czech industry minister Jozef Sikela said earlier this month.

"Negotiations with the preferred contractor will now follow, among other things, on the option for more units, but also on the involvement of Czech industry,” the Czech government said in a statement, adding it was aiming to sign the contract in the first quarter of next year.

Yet some nuclear experts believe the Korean firm’s offer raises questions.

"It’s like an all-inclusive package, with payment on delivery. All the risk is borne by KHNP,” said Maxence Cordiez, an associate expert in energy and climate at Institut Montaigne, a French think tank.

He said risks included presenting a design – the APR 1000 – that had not yet been certified by nuclear safety authorities.

“When you certify a reactor, it’s not just yes or no. The nuclear safety authority can ask for modifications, and that has a cost,” he said.

There are also questions regarding KHPN’s financial health. According to the World Nuclear Industry Status Report (WNISR), an annual study, Kepco, KHPN’s parent company, had accumulated a net debt of USD 149bn (EUR 137.3bn) by 2022, more than double EDF’s debt.

“In any case, this company is not doing well. Are these good conditions to start investing elsewhere?” said Mycle Schneider, independent analyst, WNISR coordinator and nuclear industry critic.

Legal uncertainties

There are also legal uncertainties.

The US firm Westinghouse, which was eliminated from the project in January, has said KHNP is not authorised to sell what it considers to be one of its technologies outside the Republic of Korea, arguing the company needs US government approval.

In a statement sent to Montel, it said it reserved the right to take the company to court.

“What could really make things happen is an American veto. If the American veto is confirmed and Westinghouse takes the Korean company to court, yes, the project is really in doubt,” said Ludovic Dupin of French nuclear lobby SFEN.

In a previous case between the two companies over the construction of a new reactor in Poland US courts ruled in favour of KHPN.