With investments in a gas combined cycle power plant and the construction of two Korean-style nuclear reactors, Doosan Enerbility and South Korean construction companies are expected to benefit significantly.
On October 1, the governments of South Korea and the United States released a joint fact sheet on the 'Korea-U.S. Strategic Investment Project,' outlining various energy initiatives in the U.S.
Project Star involves a $22.3 billion investment to build and operate a 6,472 MW gas combined cycle power plant in Encinal, La Salle County, Texas. The first phase of commercial operation is set to begin in 2029, with full operational capacity targeted for 2032. The electricity generated will supply a nearby artificial intelligence data center, contributing directly and indirectly to the development of the AI industry in both countries.
A key feature of Project Star is the expanded participation of Korean companies in the supply of power generation equipment, including gas turbines, as well as in engineering, procurement, and construction (EPC). The U.S. government has not mandated that equipment suppliers include American companies like GE Vernova, as major gas turbine manufacturers are currently overwhelmed with private sector orders driven by a supercycle triggered by AI data centers.
As a result, Doosan Enerbility is expected to benefit as a major supplier of gas turbines, alongside other experienced construction firms such as Hyundai Engineering & Construction, Samsung C&T, and Daewoo Engineering & Construction.
Project Power aims to construct eight large nuclear reactors in the U.S., including two APR1400 reactors and six AP1000 reactors from Westinghouse, with a total investment of $120 billion. Of this, $100 billion is allocated for construction costs, while $20 billion is set aside as a contingency for potential cost increases.
Doosan Enerbility and South Korean construction companies are also expected to gain from this project. Industry experts believe that, given the current disruption in the U.S. nuclear supply chain, reliance on South Korean companies will increase significantly to complete the eight large reactors in a timely manner.
The APR1400 is a new model of pressurized water reactor developed by a consortium of South Korean companies, including Doosan Enerbility, Korea Hydro & Nuclear Power, Korea Electric Power Technology, and Korea Nuclear Fuel. As Doosan Enerbility is responsible for manufacturing key components such as reactor pressure vessels and steam generators, it has been identified as a crucial player in the U.S. nuclear market, alongside small modular reactors (SMRs).
Furthermore, Doosan Enerbility has been confirmed as a supplier of key components for the Westinghouse AP1000, including pressure vessels and steam generators, and is now entering the contract execution phase, which is expected to further enhance its profits.
* This article has been translated by AI.
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