TerraPower, a small modular reactor company at the forefront of next-generation technology, in which SK Group has the second-largest investment, has received authorization from the US Nuclear Regulatory Commission to construct an advanced commercial nuclear facility.
This milestone represents the inaugural approval by US regulatory entities for the development of an advanced reactor, specifically a Small Modular Reactor (SMR).
This marks the pioneering development of a new commercial nuclear power plant in the US after a decade. TerraPower's objective is to expedite the construction of SMRs and have the plant operational by 2030.
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SK Group has bolstered its collaboration with TerraPower in order to ensure the stability of future power grids. In August 2022, SK Inc. and SK Innovation collectively injected $250 million (equivalent to around 370 billion won) into TerraPower, thereby becoming its second-largest stakeholder. These two entities remain committed to working together on the advancement of small modular reactor (SMR) technology and the worldwide scaling of their business operations.
The anticipated approval from the NRC is poised to expedite SK Group's endeavors in attaining a prominent position within the power grid industry. Collaboration between SK Group and TerraPower has been intensified to develop reliable energy solutions for industrial facilities both domestically and internationally, such as the construction of South Korea's largest AI-focused data center in Ulsan.
The approval is also projected to enhance the domestic nuclear power sector in South Korea and bolster the ecosystem for nuclear power and equipment through partnerships with TerraPower.
As per reports from sources within the industry, it is anticipated that the approval from the NRC will hasten the entrance of SK Innovation and Korea Hydro & Nuclear Power into the international market for Small Modular Reactors (SMRs).
In March 2023, SK Innovation and KHNP entered into a business agreement with TerraPower for the commercialization of SMR technology and the expansion of their global operations, collaborating on the development of demonstration and commercial reactors for fourth-generation SMRs utilizing sodium-cooled fast reactor technology.
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With this approval in place, TerraPower intends to expedite the construction of a 345MW SMR plant in Wyoming, with the objective of having a demonstration reactor operational by 2030. SK Innovation stated that the approval from the NRC would hasten TerraPower's schedule for commercializing SMRs and expanding its global business.
SK Innovation is striving to establish an SMR ecosystem at different industrial locations by leveraging its expertise in energy and materials, along with KHNP's exceptional capabilities in nuclear plant construction and operation, to offer tailored integrated energy solutions for addressing power supply challenges.
Additionally, SK Group requires substantial power resources for South Korea's initial and largest data center dedicated to artificial intelligence (AI), which is presently under construction in Ulsan in collaboration with Amazon Web Services. The approval for construction is anticipated to create new avenues for growth, benefiting both SK Group and domestic nuclear equipment manufacturers in collaboration with TerraPower.
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Doosan Enerbility has been tasked with providing sodium reactors and essential equipment to TerraPower, and will be involved in the Wyoming SMR plant initiative. Additionally, HD Hyundai plays a crucial role as a partner, responsible for the production of reactor vessels for TerraPower's inaugural SMR facility.