SK Invests 300 Billion KRW in US Terawatt, a 'Next-Generation SMR Company'

SK Corp.·SK Innovation
Invests 300 Billion KRW in SMR Design Company TerraPower

[Asia Economy Reporter Donghoon Jeong] SK Inc. and SK Innovation are accelerating their efforts to reduce global carbon emissions by investing in a next-generation small modular reactor (SMR) company founded by Bill Gates, the founder of Microsoft. This move is expected to further boost the group's ongoing initiatives for building a 'green energy portfolio' and achieving 'Net-Zero' early, as proposed by Chairman Chey Tae-won.

On the 15th, SK announced that it participated as a co-lead investor alongside Bill Gates in raising $750 million (approximately 979.5 billion KRW) for TerraPower, a U.S.-based SMR design company.

Recently, SK's two affiliates completed an equity investment worth $250 million (approximately 300 billion KRW) after receiving approval from the U.S. Committee on Foreign Investment in the United States (CFIUS). Going forward, they plan to participate in TerraPower's reactor commercialization projects in South Korea and Southeast Asia, leading the realization of carbon neutrality through zero-carbon power supply.

Founded in 2008 by Bill Gates, TerraPower is an innovative company in the nuclear power industry that holds design technology for sodium-cooled fast reactors (SFR), a type of next-generation reactor.

SFR technology generates heat through nuclear fission using fast neutrons, transfers the heat via liquid sodium coolant, and produces electricity by generating steam in the process. Compared to the currently operating third-generation reactors, this is a step forward in safety and economic efficiency as a fourth-generation nuclear technology. It is recognized as a leading next-generation SMR technology due to its ability to drastically reduce nuclear waste while ensuring high safety. Currently, with funding from the U.S. Department of Energy, TerraPower is conducting a demonstration project aiming for commercialization by 2028.

This investment round is one of the largest single-company investments in the next-generation nuclear power industry to date. It is expected to accelerate the development and commercialization of innovative SMR-related technologies by TerraPower.

SK's investment in TerraPower came after more than a year of continuous review of related investment plans following the resolution for early achievement of 'Net Zero' to overcome the climate crisis at the expanded management meeting in June last year. In October last year, led by Chairman Chey Tae-won, SK announced its goal to contribute to a 1% reduction in global carbon emissions by 2030, focusing on the competitiveness of SMRs as a 'carbon-free safe power source.' This long-standing commitment and review toward carbon reduction have led to investment in a global leading company, bringing SK one step closer to completing its 'green energy portfolio.'

In particular, TerraPower also possesses technology for producing the therapeutic radioactive isotope Actinium-225 (Ac-225). Ac-225 is considered the most effective raw material for targeted alpha therapy drugs that destroy cancer cells without damaging normal cells. SK expects to discover various business opportunities in the bio sector, including drug development and contract manufacturing, through collaboration between TerraPower and bio companies it has previously invested in.

Kim Muhwan, Head of SK Inc.'s Green Investment Center, said, "We believe that linking TerraPower's innovative next-generation small nuclear reactor technology and therapeutic radioactive isotope production capabilities with SK's diverse energy and bio portfolios will create powerful synergy."

Chris Levesque, CEO of TerraPower, stated, "TerraPower is striving to solve the most challenging issues facing our generation, such as the climate crisis and cancer, through technological innovation."

This content was produced with the assistance of AI translation services.