KHNP, France’s Orano Sign Long-Term Uranium Enrichment Cooperation Deal

Korea Hydro & Nuclear Power (KHNP) has entered into a letter of intent (LOI) with French nuclear company Orano to explore long-term cooperation in uranium enrichment, aiming to diversify its nuclear fuel supply chain and enhance access to Western suppliers. The LOI was signed on September 8 in Paris at the Élysée Palace by the presidents of South Korea and France.

This agreement builds upon a memorandum of understanding signed between KHNP and Orano in April during Macron's visit to South Korea. Uranium enrichment, a crucial step in the nuclear fuel cycle, is integral to nuclear power generation as natural uranium must be processed and enriched before being used in commercial reactors. Growing geopolitical uncertainties in nuclear fuel supply chains have prompted KHNP to diversify its supplier network, with Orano offering an additional channel for securing enrichment services and reducing exposure to geopolitical risks.

Orano operates the Georges Besse II enrichment facility at the Tricastin nuclear site in France, with an annual capacity of around 7.5 million separative work units (SWU). The French company is expanding its capacity to meet increasing demand for Western enrichment services. The growing emphasis on the resilience of the entire nuclear supply chain, including uranium procurement, conversion, enrichment, fuel fabrication, and spent fuel management, underscores the importance of stable nuclear fuel supplies for South Korea's nuclear projects.

The agreement also signals the expanding scope of nuclear cooperation between South Korea and France, as industrial ties in the nuclear sector extend beyond power plant construction and operation to the upstream nuclear fuel cycle. KHNP and Orano plan to use the LOI as a foundation for developing specific long-term cooperation measures in uranium enrichment and gradually expanding their partnership.