South Korea's investment projects in the United States have been revealed, with significant agreements reached on a power plant in Texas and the construction of nuclear reactors. However, the Alaska liquefied natural gas (LNG) project is still in the preliminary review stage.
According to a joint fact sheet released by the U.S. and South Korean governments on October 1, the two countries have agreed to pursue 'Project Star,' 'Project Power,' and 'Project North' under a strategic investment memorandum of understanding (MOU). These initiatives aim to expand power supply for artificial intelligence (AI) and strategic industries while strengthening key supply chains.
Project Star involves a $22.3 billion investment to construct and operate a 6,472 MW gas-fired combined cycle power plant in Encinal, La Salle County, Texas. The project will be managed by a joint venture between Related Companies and NextEra, with Luis Energy Group as a business partner.
The first phase of commercial operation is set to begin in 2029, with full facility operation targeted for 2032. The generated electricity will be supplied directly to nearby data centers. The two countries have agreed to increase the participation of South Korean companies in the supply of power generation equipment, design, construction, and long-term operation and maintenance. Notably, the U.S. will provide opportunities for South Korean companies to supply Korean-made equipment, including turbines, for similar projects within the country.
Through Project Power, the construction of eight large nuclear reactors in the U.S. will be pursued. This includes two Korean APR1400 reactors and six Westinghouse AP1000 reactors, with a total investment of $120 billion. Of this, $100 billion is allocated for construction costs, while $20 billion is set aside for contingencies. The signatories include the governments of both countries, Westinghouse, Korea Electric Power Corporation, and Korea Hydro & Nuclear Power.
The two nations have also agreed to collaborate on an advance payment of $10 billion to secure long-lead items by the end of the year, contingent on meeting domestic legal requirements. Additionally, South Korean companies are looking to invest in a minority stake in Westinghouse, with specific terms to be finalized later.
The Alaska LNG project will be reviewed based on commercial viability and compliance with domestic legal requirements under the strategic investment MOU. The U.S. plans to support the participation of South Korean equipment manufacturers and suppliers, as well as provide options for LNG purchase contracts at economically viable prices, along with priority access for South Korea.
* This article has been translated by AI.
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