30, 50, 60… What percentage of Dukovany will go to Czech companies

Korea Hydro & Nuclear Power (KHNP), the ČEZ Group and, above all, the Czech companies themselves will decide on the participation of Czech companies in the CZK 200 billion project (price per unit without financing costs). Some of them already have the contract almost secured, while others will compete in tenders in the coming years, which will be based on the project schedule. The construction of the first block itself should not begin until 2029, with trial operation of the first new block scheduled for 2036. An analysis by the Ministry of Industry and Trade on the possibilities of Czech industry's involvement in the construction of new nuclear power plants estimates that a 50 per cent involvement rate for domestic companies is realistic. The maximum possible participation of Czechs then corresponds to 70 to 75 per cent. However, according to the analysis, these figures should be taken "as significantly indicative".  Most companies have experience supplying both foreign and Czech nuclear power plants, including Mochovce in Slovakia, Dukovany, and Temelín, which was built in the late 1980s and has been in operation since 2002.

Since South Korea's KHNP was selected as the preferred supplier for both units, the state and representatives of Czech industry have been demanding a 60 per cent stake for Czech companies. And the Koreans repeatedly assure that they will comply with this requirement. The future operator of the power plant, ČEZ, is also counting on this share. "From the very beginning, we have been counting on 60% participation by Czech companies, and I can confirm that this declaration is achievable," said Petr Závodský, CEO of Elektrárna Dukovany II. The Czech side wants to secure the participation of domestic industry in this huge project as much as possible. Although European law does not directly allow specific deliveries to be anchored in the main contract between ČEZ and KHNP, there are other ways to secure part of the contract for Czech companies even before the contract is signed. At the end of February, Minister of Industry and Trade Lukáš Vlček (STAN) requested that KHNP secure at least 30 per cent of supplies before signing, for example by concluding preliminary agreements.

The Koreans have already secured part of the promised one-third of orders by awarding the contract for the secondary circuit of the power plant to Doosan Škoda Power in Plzeň. "I am glad that the idea of transferring the turbine island was raised by KHNP management at the February forum on Czechia-Korea nuclear cooperation. In my opinion, it will contribute significantly to achieving the required 30 per cent volume,," said Vlček. The machine hall may be approaching a 20 percent share. "Provided that its scope includes the entire construction part, all related control and management systems, field instrumentation and electrical parts, including all machinery supplies. So far, we are nowhere near achieving this share in the negotiations," notes Josef Perlík, Executive Director of the Czech Energy Alliance. 

Supplies to the secondary circuit could also be provided by two Czech companies, MICo and Chemcomex. "Since Doosan Škoda Power in Plzeň is one of our existing customers, we believe that we will have the opportunity to supply heat exchangers, such as condensers, which we have historically supplied for its turbines, for the new Dukovany units as well. We would also be able to install piping systems in the machine hall, as we have recent experience with this from the completion of the Mochovce nuclear power plant in Slovakia,," says Marián Lipovský, CEO of MICo and Chemcomex. Before signing the contract, KHNP must also come up with a clear plan for how it will fulfil the remaining 60 per cent of the promised Czech supplies. Which representatives of domestic industry are awarded billions of crowns from Dukovany will be decided over the next few years. "We will know for certain whether we will participate in the EDU II delivery once we have signed at least a preliminary agreement, but no specific negotiations have yet begun with any of the Korean companies," says Lipovský.

The prices of the deliveries are also unknown. For the time being, at least the potential suppliers themselves can make a rough estimate. "Deliveries for our two companies could potentially amount to hundreds of millions of crowns," adds Lipovský. According to Lukáš Zedník, member of the Energy Alliance Committee and Deputy Director of Plant 8 at Metrostav DIZ, it can be assumed at this stage that the construction stage will need to be divided into several categories that are individually costed. "In most cases, the supplier tries to reach a situation by the end of the tender where key supplies are secured by preliminary agreements or other binding forms," explains Zedník.

For example, the Association of Construction Entrepreneurs is convinced that domestic construction companies are capable of carrying out all construction work in Dukovany. "If the result is to be of high quality, it requires, above all, time for preparation. That is why we are striving to at least conclude preliminary agreements – so that Czech companies know what to expect and within what timeframe," says Jiří Nouza, president of the association ( ). The participation of Czech industry in the entire project is of strategic importance for Czechia, not only from an economic point of view, but also for the future. ČEZ has to decide how it will service its nuclear power plants, and companies could then provide maintenance and spare parts. 

KHNP previously stated that it would be willing to cooperate with Czech subcontractors on its other projects abroad. However, the Czechs should not rely on this too much, as it appears that KHNP is withdrawing from Europe and leaving the market to the American company Westinghouse, even though it denies this. Despite this, however, the Korean company has withdrawn from three tenders for the construction of nuclear power plants since the beginning of the year – in Sweden, Slovenia and the Netherlands. This could prevent Czech companies from participating in future KHNP projects, which is now planning further projects in Asia, where requirements are not as strict as in the EU. "Our products would certainly be able to compete in terms of quality and environmental responsibility, occupational health and safety, but unfortunately, the price of our products, which also includes all the costs associated with certification, management and audits to ensure compliance with these standards, cannot compete with Asian prices, in my opinion," explains Tomáš Novák, head of the special applications department at Mandík, a company that manufactures fire protection and ventilation components, units and industrial heating systems.

Therefore, even according to Perlík, it cannot be assumed that Czech companies would become involved in KHNP's supply chain in Asia. Negotiations between the Korean and Czech sides are coming to an end, with some issues still under discussion, including the involvement of Czech industry. "This is one of the elements that is currently being finalised in the final stages," said Pavel Cyrani, Vice-Chairman of the Board of Directors of ČEZ.