South Korea and U.S. Strengthen Energy Security Cooperation

South Korea and the United States are enhancing their energy security cooperation, focusing on power grids and small modular reactors (SMRs). The two countries have agreed to hold the 'Korea-U.S. Energy Cooperation Dialogue' promptly and to formalize it through a memorandum of understanding (MOU). The South Korean government also proposed a 'Resilient Power Grid Partnership' at the G20 to establish a stable supply chain for key power equipment.

The Ministry of Climate Energy and Environment announced that Deputy Minister Lee Ho-hyun attended the G20 Energy Ministers' Meeting in Houston, Texas, from September 14 to 16, where he discussed energy cooperation with major countries, including the U.S.

During the meeting, Deputy Minister Lee proposed expanding cooperation in areas such as power and SMRs with U.S. Secretary of the Interior Doug Burgum and Deputy Secretary of Energy Kyle Housebait. He emphasized that South Korean companies in the power equipment and energy storage system (ESS) sectors are increasing investments in the U.S., positioning South Korea as a key partner in the modernization of the U.S. power grid.

The two nations agreed to quickly hold and regularize the 'Korea-U.S. Energy Cooperation Dialogue' between the U.S. Department of Energy and the Ministry of Climate Energy and Environment, and to pursue an energy cooperation MOU to support this initiative.

Beyond bilateral cooperation, the South Korean government proposed a G20-level collaboration on power grid and equipment supply chains. During the 'Energy Security' session on September 15, Deputy Minister Lee presented the challenges posed by the increasing global demand for electricity, focusing on capacity, connection, and supply chain—referred to as the '3Cs.'

He noted that even with the expansion of renewable energy and nuclear power facilities, delays in connecting power grids and issues with the supply of key power equipment hinder the construction of power networks. He stressed the need for a joint response among countries to establish a stable supply chain for materials and equipment required for transformers, batteries, and wires.

Deputy Minister Lee proposed sharing investment plans for power grids among G20 member countries and establishing a 'Resilient Power Grid Partnership' involving governments, power companies, grid operators, and equipment manufacturers. The government plans to detail related cooperation measures with the U.S., U.K., and others as it prepares to assume the G20 presidency in 2028.

The G20 meeting also addressed issues related to the supply chain of critical minerals and industrial water. Member countries acknowledged the need for a stable and diversified supply chain for critical minerals and discussed cooperation measures such as information sharing, technological innovation, promoting a circular economy, and increasing mineral investments.

Deputy Minister Lee introduced domestic policy examples of reusing treated wastewater from sewage treatment plants or factories as industrial water to address the rising demand for industrial water due to the growth of advanced industries like AI data centers and semiconductors.

During his visit to the U.S., he also sought collaboration with American energy companies and research institutions. He visited ExxonMobil to discuss cooperation on low-carbon lithium development, carbon capture and storage (CCS), and low-carbon projects involving hydrogen and ammonia. At Rice University’s Baker Institute for Public Policy, he discussed the situation in the Middle East and the outlook for the global energy market, proposing to expand exchanges with the Korea Energy Engineering University.

At AMOGY, an energy startup, he reviewed the commercialization status of ammonia cracking technology, which converts ammonia into hydrogen for fuel cells. AMOGY is participating in a specialized area for distributed energy in Pohang and is establishing production facilities in Busan, with plans to export its initial production to Singapore by the end of this year.

On September 14, Deputy Minister Lee held a meeting with South Korean energy companies operating in Houston to listen to their insights on trends in the U.S. energy market and the challenges they face.

He stated, "The government will play an active role in building a system to collaborate with various stakeholders, including the U.S. government and power companies, to reduce uncertainties in the U.S. market and minimize risks for our companies."