Westinghouse Electric has reached a global settlement with South Korean state-owned utility Korea Electric Power Corporation (KEPCO) and its subsidiary Korea Hydro & Nuclear Power Company (KHNP).
The agreement resolves a long-standing intellectual property (IP) dispute over nuclear power plant technology.
The terms of the settlement remain confidential, as agreed by all parties.
This settlement gives the parties certainty in pursuing new nuclear reactors. It also paves the way for future global cooperation on nuclear projects.
It is also expected to clear a major hurdle for KHNP and KEPCO. This will help finalise a $17.1bn deal to build two nuclear reactors at the Czech Republic’s Dukovany power plant. The deal is set to be finalised by March.
All ongoing legal actions between Westinghouse and the Korean companies will be dismissed.
Westinghouse president and CEO Patrick Fragman said: “Westinghouse is pleased to reach an agreement with KEPCO and KHNP on this important issue.
“As the world demands more firm baseload power, we look forward to opportunities for cooperation to deploy nuclear power at even greater scale.”
In July 2024, a Korean consortium led by KHNP was selected to build nuclear reactors in the Czech Republic, beating Électricité de France (EDF) and Westinghouse.
However, the deal’s signing was delayed due to a legal dispute over technology licensing and royalty payments with Westinghouse.
Westinghouse claimed that the APR1400 model, developed by KHNP, was based on its own APR1000 design. Therefore, KHNP and KEPCO should pay royalties for its export, said the American nuclear technology firm.
In response, KHNP maintained that it had been licensed to employ the technology without requiring Westinghouse’s permission and doesn’t have to make any royalty payments.
According to a report in The Korea Economic Daily, industry experts suggest that KHNP could have offered significant concessions. These could include paying royalties and sharing future contracts, among others.
US Secretary of Energy Jennifer Granholm said: “US and Republic of Korea cooperation on civil nuclear energy can offer a highly competitive alternative on the global marketplace while upholding the highest non-proliferation standards.”
The settlement was reached a week after the US and South Korean governments signed a memorandum of understanding on nuclear cooperation and exports.
Cameco, a Canadian nuclear fuel company with a major stake in Westinghouse, has announced its support to the settlement agreement.
Cameco president and CEO Tim Gitzel said: “This agreement strengthens the industry’s ability to provide carbon-free, reliable, dispatchable baseload electricity to help achieve climate, energy and national security objectives.”
