Doosan Enerbility Wins $4.1 Billion Czech Nuclear Plant Supply Deal

Doosan Enerbility (034020.KS) has signed a 5.6 trillion won ($4.1 billion) contract to supply nuclear reactors and turbines for the Czech Republic's new nuclear power plant, marking a major milestone in Korea's expansion into the European nuclear market.

The company announced Wednesday that it signed an agreement with Korea Hydro & Nuclear Power (KHNP) to supply core components including nuclear reactors and steam generators, as well as turbines and generators, for the Dukovany Nuclear Power Plant Units 5 and 6, each with 1,000 MW capacity.

Of the total contract value, approximately 4.9 trillion won is for core components including reactors and steam generators, while about 700 billion won covers turbines and generators. The contract value represents 35% of Doosan Enerbility's revenue last year.

The deal follows the main contract that "Team Korea"—comprising KHNP, Doosan Enerbility, KEPCO Engineering & Construction, Daewoo Engineering & Construction, KEPCO Nuclear Fuel, and KEPCO KPS—secured for the Czech new nuclear plant project. The main contract was signed in June between KHNP and EDU II, a subsidiary of Czech utility CEZ, with KHNP serving as the engineering, procurement, and construction (EPC) lead contractor.

Doosan Enerbility plans to manufacture and supply the components from November 2027 through August 2032, during the construction period for Dukovany Units 5 and 6. A company official noted that the contract timeline and amount may change as the project progresses.

The contract secures a firm foothold in the European market for Doosan Enerbility while establishing a reliable revenue stream. Once core component manufacturing begins in earnest, the company expects to secure stable sales and operating profit for several years.

This deal is expected to push the company's annual orders well beyond its 10 trillion won target for this year, with total orders now likely to reach approximately 14 trillion won.

Industry experts anticipate that Doosan Enerbility will become a major beneficiary of the "global nuclear renaissance" following this Czech contract. The Czech plant, once completed, will serve as a reference that meets European regulatory standards, providing a competitive advantage in ongoing discussions for new nuclear projects across Europe. The deal is also expected to create synergies with the company's small modular reactor (SMR) business, a key growth driver.

Team Korea's overseas nuclear export, achieved after approximately 16 years, faced significant hurdles before contract signing. KHNP had initially planned to sign the main contract with EDU II in May, but French utility EDF filed for an injunction that was granted just one day before the scheduled signing, temporarily derailing the deal. The Czech Supreme Administrative Court later ruled that the lower court's injunction was "illegal and partially not subject to review," lifting the injunction and clearing the path for the contract.

The total estimated project cost for constructing the two new Dukovany units is approximately 26 trillion won.

The Czech contract is expected to energize Korea's entire nuclear industry. Korea's last overseas nuclear plant export was the approximately 27 trillion won Barakah Nuclear Power Plant in the United Arab Emirates in 2009. In the Czech project, Doosan Enerbility handles core component supply and construction, while KEPCO E&C provides design services, KEPCO Nuclear Fuel supplies nuclear fuel, and KEPCO KPS manages commissioning and maintenance. Multiple subcontractors will also participate in the Dukovany construction.

Expectations are rising for K-nuclear's next steps. In September, Doosan Skoda Power, Doosan Enerbility's Czech subsidiary, signed an additional 300 billion won contract with CEZ to supply two generators for the Temelin Nuclear Power Plant Units 1 and 2, the largest in the country. The contract covers generator replacement needs and includes 15 years of maintenance services.

With Doosan Skoda Power securing generator contracts for both Dukovany and Temelin plants, analysts expect Korea to become a key partner in future nuclear expansion projects in the Czech Republic. According to the Czech government's official new nuclear development plan, construction of Temelin Units 3 and 4 will follow Dukovany Units 5 and 6. Under bilateral agreements reached last year, if the Czech government decides to proceed with additional Temelin expansion within five years, Team Korea holds preferential negotiation rights and is likely to secure the contract.

The global nuclear market is projected to grow to astronomical levels. According to the World Nuclear Association, the global nuclear market is expected to reach approximately 1,635 trillion won by 2035. The United States plans to quadruple its nuclear power capacity by 2050.