Korea Hydro & Nuclear Power (KHNP) – subsidiary of South Korea’s state-owned utility, the Korea Electric Power Corporation – has won a contract to the tune of $2.25 billion whereby the company will provide buildings and components for Egypt’s first-ever nuclear power plant.
The contract was signed between KHNP and Atomstroyexport – a member of Russia’s state-owned nuclear group, Rosatom – and represents the first overseas nuclear commission for a South Korean company in 13 years.
As per the terms of the agreement, KHNP will construct the turbine islands for the project, comprising the construction of approximately 80 buildings and structures as well as the procurement and supply of equipment and materials. For KHNP, the project enables the company to expand its international footprint, while for Egypt, the assurance of an expert nuclear supplier for its flagship nuclear project.
“Building upon our experience acquired in the United Arab Emirates, KHNP will do its best for the successful implementation of the El Dabaa nuclear power plant project,” states Jooho Whang, CEO, KHNP.
Rosatom is the reactor supplier for the project, and will also be responsible for the nuclear power plant’s construction and nuclear fuel supplies for its entire lifecycle.
“Nuclear energy does not only play an important role in meeting the increasing demand for electricity and achieving carbon neutrality but it also brings nations together,” stated Boris Arseev, Director for International Business at Rosatom, adding that, “We at Rosatom strongly believe that nuclear cooperation must not stop in these turbulent times. On the contrary, it is of paramount importance to develop and expand it further benefiting our countries.”
Located on Egypt’s Mediterranean coast, the nuclear project – dubbed El Dabaa – targets a nameplate capacity of 4,800 MW, comprising four units that will generate 1,200 MW each. The total cost of the project is estimated at $28.75 billion, with Russia financing 85% via a state loan and Egypt financing 15%. The permit for the first unit was issued by the Egyptian Nuclear and Radiological Regulatory Authority in June 2022 with first safety-related concrete poured in July 2022. Commissioning of the project is expected in 2026.
