Czech Antitrust Authority Pauses €16 Billion Nuclear Reactor Contract Amid Patent Disputes

In a significant move, the Czech Republic’s antitrust authority (ÚOHS) has temporarily halted a substantial €16 billion contract to construct two nuclear reactors, a project previously awarded to a South Korean-led consortium earlier this year. The decision comes after formal objections were raised by global nuclear players, including Westinghouse and France’s Electricité de France (EDF), claiming potential infringement on their reactor design patents.

According to a statement by ÚOHS spokesperson Martin Švanda, the regulator recently issued a precautionary order, effectively blocking any finalization of contracts related to the reactor construction bid. “In the past days, based on filings of companies EDF and Westinghouse, ÚOHS issued precautionary measures which forbade sponsor to close down contracts in the tender on the construction of new nuclear source,” Švanda informed Czech Television on October 30. The temporary halt aims to preserve the status quo until a full review of the dispute is conducted, though officials emphasized that it does not suggest any determination regarding the outcome.

The French and American nuclear power companies contend that the planned Czech project, managed by Korea Hydro & Nuclear Power (KHNP), violates existing patents on reactor technology, a claim they hope will prompt a reconsideration of the tender process. However, per officials, the issuance of the preliminary halt is procedural, rather than a forecast of any final decision. “Issuing of precautionary measure does not indicate anything about what decision will be made in [said] matter,” Švanda reiterated, as reported by Yonhap.

Despite this legal complication, ČEZ Group, the state-owned Czech utility overseeing the Dukovany nuclear project, maintains that all procurement guidelines were followed in selecting KHNP as the preferred contractor. ČEZ spokesperson Ladislav Kříž emphasized that precautionary measures are a standard procedural response to competitive grievances, with the agency enacting over 120 similar measures in the past year alone. Kříž also expressed confidence that the contract would be signed by the intended deadline of March 31, with negotiations with the South Korean consortium ongoing.

South Korea’s Ministry of Industry described the regulator’s action as a “routine measure” and downplayed its potential impact on the project’s progression. Speaking to the Czech press, a ministry official projected that the current hold on contract closure would have a limited effect on the finalization timeline, adding that the consortium expects to work through the legal objections raised by EDF and Westinghouse.

Czech Industry and Trade Minister Lukáš Vlček acknowledged the delay but played down the likelihood of it derailing the project. “It is a complication,” Vlček told reporters on October 30, “but not one that would be insurmountable.”

The project holds substantial geopolitical and economic significance. South Korean President Yoon Suk Yeol has publicly supported KHNP’s bid, seeing the Czech project as pivotal to the nation’s nuclear export ambitions. Recently, at a ceremony commemorating nuclear infrastructure developments in South Korea, President Yoon underscored the Czech venture as a stepping stone for further nuclear deals abroad. Securing the €16 billion deal would mark South Korea’s second successful nuclear export, following its landmark project in the United Arab Emirates in 2009. President Yoon also made a diplomatic visit to the Czech Republic last month, underscoring his government’s commitment to expanding South Korean influence in global nuclear energy.

Further cementing ties, KHNP recently signed a memorandum of understanding with a Czech hydrogen association, signaling a mutual interest in clean energy collaborations, including potential advancements in hydrogen technology.

Source: Intelli News