South Korea and U.S. Announce Major Nuclear Energy Cooperation
The governments of South Korea and the United States have jointly announced a significant agreement to build new megawatt-class nuclear reactors within the United States. This collaboration is intended to strengthen supply chains and foster cooperation in strategic industrial sectors, including energy, between the two countries. The agreement deepens the strategic partnership and reflects a shared commitment to implementing a trade deal.
The comprehensive cooperation framework outlines the construction of eight large-scale nuclear power plants: two APR1400s and six AP1000s. These reactors are intended to expand baseload power capacity and enhance U.S. energy security. Both the AP1000 and the APR1400 designs have received licensing from the Nuclear Regulatory Commission for construction in the U.S. The objective is to have all eight reactors under construction by 2030. The plan leverages U.S. technological expertise with South Korea's supply chain capabilities.
Project Participants and Funding
The parties involved in this agreement include the governments of both countries, Westinghouse Electric Company, Korea Electric Power Corporation, and Korea Hydro & Nuclear Power Co., Ltd. The agreement aims to utilize South Korea's construction capabilities to meet U.S. electricity demands.
The total planned funding allocation is $120 billion out of a $200 billion overall plan. Of this, $100 billion is designated for construction costs, with an additional $20 billion allocated for contingency reserves. To facilitate prompt construction, the Republic of Korea and the United States have agreed to cooperate on a $10 billion advance payment by the end of the year. This payment is primarily for the immediate purchase of long-lead items, in compliance with domestic legal requirements.
Additionally, potential investment by Korean companies in a significant minority interest in Westinghouse will be pursued. This arrangement is designed to facilitate the sharing of commercial gains from large-scale nuclear power plant projects, with detailed terms and conditions to be finalized through commercial negotiations at a later date.
