President Yoon Suk Yeol gives a speech at the construction site of nuclear power plants on which work was shelved over the past few years
South Korea has approved the construction of two nuclear power plants, officially ending its anti-nuclear policy aggressively pursued by the previous Moon Jae-in administration.
The Nuclear Safety and Security Commission on Thursday approved the construction of Shin Hanul nuclear reactors No. 3 and No. 4 and related facilities in Uljin, 330 km southeast of Seoul, which was halted under the Moon administration.
The approval came eight years and three months after Korea Hydro & Nuclear Power Co. (KHNP) applied for construction approval in 2016.
While approving the construction plan at a plenary session, the commission concluded that the technical capability, suitability and safety of the two nuclear reactors met legal standards and regulations.
A nuclear power plant operated by Korea Hydro & Nuclear Power in South Korea (Courtesy of KHNP)
The project, estimated at 11.7 trillion won ($8.8 billion), involves building two 1,400 megawatt (MW) advanced pressurized water nuclear reactors (APR1400) in Uljin by 2033.
The construction of Shin Hanul Units 3 and 4 was originally scheduled for completion by 2023.
However, the project was scrapped due to the previous government’s nuclear phase-out policy.
The incumbent President Yoon Suk Yeol revived the construction plan, making Shin Hanul Units 3 and 4 the symbol of the revival of Korea’s pursuit of nuclear energy, analysts said.
The Presidential Office said concerns about earthquakes around the new nuclear power plant sites are minimal, given that no active seismic faults have been found near the sites and no active faults capable of surface faulting have been detected within 8 kilometers of the area.
Government officials at the start of the production of the main equipment for Shin Hanul units 3 and 4 Doosan Enerbility on May 15, 2023
SHARES OF RELATED FIRMS SOAR
Doosan Enerbility Co., a leading Korean power plant engineering company and the main contractor of the project will build reactors, generators and other related equipment worth 2.9 trillion won.
Auxiliary equipment contracts worth 2 trillion won, including pumps, pipes and cables, will be gradually awarded over the next decade.
The government aims to complete Shin Hanul Unit 3 by 2032 and the Unit 4 by 2033.
Shares of related companies soared on the government approval of the project on Thursday.
Doosan Enerbility’s stock closed 8.19% higher at 17,710 won. Bosung Powertec Co., which supplies steel frames for the project, rose by the daily limit high of 30% at 3,580 won. Woori Technology Inc., the project’s exclusive supplier of nuclear control systems, finished 13.6% at 2,335 won.
Global SMR market forecast
ADDITIONAL NUCLEAR PLANTS, SMRs
The government plans to build additional nuclear power plants.
According to the country’s latest energy scheme, the 11th Basic Plan for Long-Term Electricity Supply and Demand, up to three new nuclear plants will be constructed by 2038 and Korea’s first small modular reactors (SMRs) will be introduced in 2035.
According to the plan, Korea will need to generate 10.6 gigawatts (GW) of energy by 2038, of which 4.4 GW is expected to come from nuclear power plants.
The government plans to increase the share of carbon-free electricity, including solar and wind power, along with nuclear power, to over 70% of the total electricity generation by 2038.
According to the basic plan, nuclear and renewable energy – the main source of carbon-free power – will account for 31.8% and 21.6%, respectively, by 2030.
A rendering image of NuScale Power’s SMR plant
Their proportion is expected to rise further to 35.6% and 32.9%, respectively, by 2038.
The share of hydrogen-ammonia power generation will rise from 2.4% in 2030 to 5.5% by 2038, according to the plan.
President Yoon, who took office in May 2022, pledged to rescind his predecessor’s policy of a gradual nuclear phase-out and increase dependence on nuclear energy.
Yoon said his government will also promote the development of small modular reactors, citing Korea’s increased reliance on fossil fuels.
The president said his government is striving to export 10 nuclear power plants by 2030.
By Kyoung-Ju Kang and Byung-Uk Do
qurasoha@hankyung.com
In-Soo Nam edited this article.
