Which Stocks Will Benefit from Nuclear Power Investments in the U.S.? [Weekend Money]

Doosan Enerbility and Construction Companies Poised to Benefit

With the announcement of Korea's investment projects in the United States, some analysts anticipate that Korean companies will benefit from nuclear power plant construction.

Minjae Lee, a researcher at NH Investment & Securities, said, "It is expected that Korean companies will have a greater share in participating in the AP1000 units, which are managed by Westinghouse, among the eight large-scale nuclear power plants to be constructed in the United States."

The first confirmed Korea-U.S. investment project is the Encinal combined cycle power plant in Texas. The funding will be injected over approximately seven years, while up to $45.4 billion (about KRW 61.6577 trillion) is expected to be recovered over a 20-year period. With a target internal rate of return (IRR) in the mid-15% range, the government plans to maximize the participation of domestic companies not only in supplying equipment but also in engineering, procurement, and construction (EPC). According to the researcher, Doosan Enerbility is expected to participate as a supplier of major equipment, and domestic construction firms can take part in EPC contracts.

According to the Ministry of Trade, Industry and Energy, in the case of nuclear power plants, the government has agreed to the 'Korea-U.S. Nuclear Power Plant Framework' to construct eight large nuclear power units in the U.S. Phase 1 includes two Westinghouse AP1000 units; Phase 2 covers two Korean-designed APR1400 units and two AP1000 units; and Phase 3 consists of an additional two AP1000 units, all to be built sequentially.

The revision of the compromise agreement, which has served as a barrier to exporting APR1400 units, is also anticipated. This presents an opportunity, the researcher explained, to export the APR1400 not only to the United States but also to third countries. Korea Engineering & Power is expected to take part in design, Doosan Enerbility in supplying key equipment including reactors, and Korean construction companies in the construction phase.

This content was produced with the assistance of AI translation services.