Korea Hydro & Nuclear Power, KHNP, and French nuclear fuel company Orano have signed a letter of intent covering long-term cooperation in uranium enrichment. The agreement could give KHNP greater access to Western enrichment capacity and reduce vulnerabilities in South Korea’s nuclear fuel supply.
The letter of intent was signed at the Élysée Palace in Paris during South Korean President Lee Jae-myung’s state visit to France. The signing took place in the presence of Lee and French President Emmanuel Macron.
It builds on a memorandum of understanding concluded during Macron’s visit to South Korea in April 2026. The earlier agreement covered broader cooperation in the nuclear fuel cycle and international markets.
A letter of intent sets out a common direction for further negotiations but does not constitute a final supply contract. No volumes, financial terms or timetable for a binding agreement have been disclosed.
Supply security gains strategic importance
Uranium enrichment is a central stage in the production of nuclear fuel. Natural uranium contains only a small proportion of uranium-235, the isotope needed to sustain nuclear fission. Enrichment increases its concentration to the level required for use in a nuclear reactor.
The process forms part of the front end of the nuclear fuel cycle, which also includes uranium mining, conversion and fuel fabrication. The back end covers the management of spent nuclear fuel and radioactive waste.
The international enrichment market is dominated by a limited number of suppliers. Russia’s war against Ukraine and Western efforts to reduce dependence on Russian nuclear fuel services have increased demand for capacity in France, the Netherlands, the United Kingdom and the United States.
– Amid growing uncertainty in the global nuclear fuel market, it is essential to secure reliable supply sources in advance, says KHNP chief executive Kim Hoe-chun.
According to Kim, the letter of intent provides an opportunity to expand cooperation between the companies and improve the stability of South Korea’s nuclear fuel supply.
KHNP already owns a stake in a French plant
The relationship between KHNP and Orano dates back almost 20 years. In 2007, KHNP signed a long-term contract worth approximately €1 billion with Areva NC, now Orano, for enrichment services at the Georges Besse II plant.
Since mid-2009, KHNP has owned 2.5 per cent of the enrichment facility. Located at the Tricastin nuclear site in southern France, the plant uses centrifuge technology to enrich uranium.
The new agreement could provide KHNP with access to additional Western capacity. For Orano, the partnership may strengthen the commercial basis for new investment and expansion projects in the enrichment sector.
– Cooperation with KHNP represents an important opportunity to further strengthen the relationship between the 2 companies. We look forward to continuing our work together in the front end of the nuclear fuel cycle, says Orano chairman Claude Imauven.
South Korea depends on imported fuel services
KHNP operates 26 nuclear reactors that generate around one-third of South Korea’s electricity. The scale of the country’s nuclear programme creates continuous demand for uranium, conversion, enrichment and fuel fabrication services.
South Korea has no commercial domestic capacity for uranium enrichment or spent-fuel reprocessing. These restrictions have historically been linked to its 1973 nuclear cooperation agreement with the United States, which was renewed in 2015.
The country imports approximately 4,700 tonnes of uranium annually from suppliers including Kazakhstan, Canada and Australia. Niger and other producing countries have also formed part of the supply chain.
Enrichment services have been purchased from Russia’s Tenex, European supplier Urenco, US-based Centrus and Orano. Using several suppliers reduces the risk that disruption affecting one company or country could interfere with reactor operations.
The agreement also illustrates how nuclear fuel has become a strategic issue for countries operating nuclear power plants. Access to natural uranium is only one part of the supply chain. Conversion, enrichment and fabrication capacity are equally important for ensuring that reactors receive usable fuel.
Orano and KHNP will now discuss specific projects, capacity requirements and delivery terms. No timetable for a final agreement has been announced.
Sources: Orano, Korea Hydro & Nuclear Power, World Nuclear News and World Nuclear Association.
Image caption: Representatives of Orano and KHNP signed the letter of intent at the Élysée Palace during South Korean President Lee Jae-myung’s state visit to France. Photo: Office of the President of South Korea.
