Where Will the Eight U.S. Nuclear Reactors Costing $120 Billion Be Built? Four States Mentioned as Candidates

[Financial News] As South Korea and the United States officially formalize the 'Korea-U.S. Nuclear Framework' to build eight large nuclear power plants in the United States with an investment of up to $120 billion, attention is now focused on the actual construction sites. The U.S. side has mentioned four states—Ohio, Tennessee, South Carolina, and Kentucky—as candidate sites, but the South Korean government maintains that it will select the site with the highest commercial viability within those states by considering factors such as ground conditions and cooling water availability.
According to the government, U.S. Commerce Secretary Howard Lutnick announced on September 30 (local time) at a South Korea-U.S. strategic investment project presentation attended by President Donald Trump that eight nuclear power plants would be built in four states. However, he did not disclose the construction volume by state or the locations where the Korean-type APR-1400 nuclear power plants would be installed.
Minister of Trade and Industry Kim Jung-kwan explained that the mentioned locations are states hoping to build nuclear power plants. The structure is such that once the project materializes, the U.S. will propose individual projects, and Korea will accept them to review potential sites. As there are multiple candidate sites within the same state, key criteria are expected to be whether the bedrock is solid enough to reduce construction costs and whether cooling water can be reliably drawn from nearby sources.
Named 'Project Power,' this project consists of two APR-1400s and six AP1000s. The governments of both countries, Westinghouse Electric Company, Korea Electric Power Corporation (KEPCO), and Korea Hydro & Nuclear Power (KHNP) are participating. Korea is also pursuing the acquisition of a 5–10% stake in Westinghouse Electric Company to share in the project's profits.
Funding will be secured from the Korea-U.S. Strategic Investment Fund, consisting of $100 billion for construction costs and $20 billion in reserves to cover any cost overruns. The target start date is 2030; considering that construction will take nearly 10 years, the investment funds will be disbursed over a long period. The government plans to disburse up to $10 billion by the end of the year to secure long-cycle manufacturing items in advance, but this is contingent on the nuclear power project brought in by the U.S. being a "project worth pursuing."
Construction will proceed in the order of two AP1000 units in Phase 1, two APR-1400 units and two AP1000 units in Phase 2, and two AP1000 units in Phase 3. Both countries also plan to shorten the interval between the first and second Engineering, Procurement, and Construction (EPC) contracts to within six months if possible. In particular, Phase 2 has been finalized to build both reactor types in parallel, with the APR-1400 taking the lead.
Construction of the APR-1400 in the United States has been blocked due to the Agreement on Settlement (SA) signed between KEPCO and KHNP and Westinghouse Electric Company. There is a strong perception that the APR-1400 is "better than the AP1000" because its construction costs have been verified. Westinghouse Electric Company is expressing concern that the SA could be effectively neutralized if U.S. power companies or developers begin to prefer the APR-1400.
The Korean government announced that it is pushing for a revision of the SA and that royalties could also change. The Korean government believes that this cooperation will serve as an opportunity for Korea and Westinghouse Electric Company to expand their presence together in the global nuclear power market, where Russia and China are rapidly rising, rather than competing over a small market.
There are still many hurdles to overcome. Participation by domestic companies in the six AP1000 projects was specified only as "priority participation," and a minimum order volume was not guaranteed. Although there were attempts to include clauses mandating the participation of Korean companies in areas such as the selection of project management (PM) firms, these were limited to expressions of "goodwill."
Although the APR-1400 received design certification from the United States Nuclear Regulatory Commission (NRC) in 2019, it lacks construction track records within the United States or construction and operation permits for specific sites, requiring site-specific licensing schedules and costs to be assessed separately. The government plans to make a final decision on investment after reviewing the project costs, grid connectivity, and regional power demand for individual projects to be presented by the United States during the fourth quarter. As the eight reactors will be built in phases, the profitability of the initial plant is expected to influence the construction of subsequent plants.

[email protected] Lee Yu-beom Reporter