The South Korean government is expanding domestic nuclear companies' participation in the small modular reactor (SMR) project of the U.S. company TerraPower. SK Innovation and TerraPower have agreed on key conditions for a global joint venture, aiming to solidify their collaboration in the overseas SMR market, including the United States.
The Ministry of Trade, Industry and Energy announced that Minister Kim Jong-kwan met with Bill Gates, chairman of the board of TerraPower, in Seoul on August 14 to discuss ways to enhance Korean companies' involvement in TerraPower's SMR project.
TerraPower received construction approval from the U.S. Nuclear Regulatory Commission (NRC) in March and is working towards a target of commercial operation by 2031. The company is developing its fourth-generation SMR, known as 'Natrium,' in the Kemmerer area of Wyoming, which uses sodium as a coolant instead of conventional water to transfer heat from the reactor to the steam generator.
Korean companies, including SK and HD Hyundai, have been financially investing in and building partnerships with TerraPower. Domestic nuclear firms are also pursuing opportunities to participate in various aspects of TerraPower's projects in the U.S. and abroad, including equipment supply, operations, and construction.
During the meeting, Minister Kim emphasized the importance of manufacturing and construction capabilities to complete projects within planned budgets and timelines to expand the overseas SMR market. He noted that Korean companies could play a pivotal role in realizing TerraPower's projects based on their accumulated experience in nuclear construction and operations.
Kim also suggested that to ensure the economic viability of SMRs, it is essential to combine TerraPower's standardized designs with South Korea's reliable mass production supply chain. He highlighted that over the past 50 years, South Korea has built and operated nuclear power plants, establishing a sophisticated manufacturing ecosystem that includes both large corporations and small to medium-sized enterprises, making it a potential key supply chain for TerraPower.
Following the meeting, Minister Kim, Bill Gates, and Chey Tae-won, chairman of SK Group, attended the signing of a memorandum of understanding on key conditions for a global joint venture between TerraPower and SK Innovation. This agreement allows SK Innovation to participate in the development of TerraPower's SMR projects in the U.S. and abroad.
The Ministry stated, "With the expansion of AI-based infrastructure and the increase in data centers, the demand for SMRs from global big tech companies is rapidly growing. As over 100 SMRs are being developed worldwide, companies will likely expand cooperation beyond national borders to secure early market and supply chain positions."
Additionally, the Ministry noted, "In light of changes in the global nuclear power market, the investment and business development of Korean companies in overseas SMR models and supply chain entry is significant for diversifying nuclear exports. The current phase, being the early stage of SMR supply chain formation, presents an opportune moment for Korean companies to actively engage in the overseas SMR supply chain through this meeting."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.