South Korean KHNP offers co-financing of Polish nuclear project

South Korea’s state-owned energy company Korea Hydro and Nuclear Power (KHNP) is willing to make a direct financial contribution to the Polish nuclear project, deputy CEO Seung Yeol Lim has told PAP.

In late April, KHNP filed a formal offer to build six APR1400 reactors with a total installed capacity of 8.4 GW for Poland. According to KHNP, the APR1400 reactors meet the basic requirements set out in the Polish programme.

Under the Polish government's energy strategy, Poland plans to construct six nuclear power units. The first reactor should start working in 2033, generating some 1-1.6 GW of power. Subsequent reactors would be constructed every two to three years.

While the official would not comment on its content, he said the Korean offer was "most competitive" and assumes meeting Polish deadlines.

Seung Yeol Lim said that KHNP is willing to take 20-30 percent of a 49-percent stake in the Polish nuclear project and meet other requirements set by the Polish government for a potential strategic partner for the project.

"This would be the KHPN's direct contribution to the investment. The rest would be covered by financial institutions. On the Korean side, it would be export credit agencies," he said.

KHNP will also investigate the possibility of obtaining financing from commercial banks, the official added.

Additionally, according to the KHNP, it is also possible to obtain financial support from other countries through export credit agencies.

The Korean side also estimates that financial guarantees from the Polish government will be necessary in the whole nuclear project, Seung Yeol Lim said.

Poland has already signed an inter-governmental agreement with the US under which American companies were to submit their offers this year.

On October 28, 2021 French state-controlled power group EDF offered to build four to six nuclear reactors in Poland, with a total installed capacity of 6.6-9.9 GW.