SK Signs 'SMR Development and Commercialization Cooperation' Agreement with US TerraPower

US-Led Next-Generation Nuclear Power Supply Chain
Global Market Expansion as a Key Partner

SK Corporation and SK Innovation, along with Korea Hydro & Nuclear Power (KHNP), are establishing a strategic partnership with the U.S. small modular reactor (SMR) design company TerraPower to pioneer the SMR market, recognized as a next-generation energy sector.

On the 4th (local time), at the Madison Hotel in Washington D.C., USA, Kim Jun, Vice Chairman of SK Innovation, Chris Levesque, CEO of TerraPower, and Hwang Ju-ho, President of Korea Hydro & Nuclear Power (from right), are holding up the signed contract at the signing ceremony for the "Mutual Cooperation Agreement for the Development and Commercialization of Next-Generation Nuclear Power Technology." Photo by SK Innovation

On the 24th (local time), Kim Jun, Vice Chairman of SK Innovation, signed a "Mutual Cooperation Agreement for the Development and Commercialization of Next-Generation Nuclear Power Technology" with Hwang Ju-ho, President of KHNP, and Chris Levesque, CEO of TerraPower, at the Madison Hotel in Washington D.C., USA. The agreement includes collaboration on the demonstration and development of commercial reactors based on TerraPower’s sodium-cooled fast reactor (Sodium-cooled Fast Reactor·SFR) 4th generation SMR called "Natrium."

The cooperation agreement was announced the following day at the "Korea-U.S. Advanced Industry and Clean Energy Partnership" event held in Washington D.C., drawing attention as a case of Korea-U.S. industrial cooperation in future energy sectors. Hosted by the Ministry of Trade, Industry and Energy, the event was organized to explore future strategic industry cooperation opportunities between Korean and U.S. business communities during President Yoon Suk-yeol’s state visit to the U.S. starting on the 24th. Attendees included the CEOs of KHNP and TerraPower, as well as Kim Moo-hwan, Head of SK Corporation’s Green Investment Center.

SK Corporation and SK Innovation share the recognition that SMRs are carbon-free eco-friendly energy sources and jointly invested $250 million (approximately 300 billion KRW) in TerraPower last August. Through this agreement, SK will participate in TerraPower’s ongoing SMR projects and jointly develop business opportunities aimed at global carbon reduction.

KHNP possesses world-class capabilities across the entire nuclear power industry ecosystem, including over 40 years of domestic nuclear power operation and the construction of the Barakah nuclear power plant in the United Arab Emirates (UAE). This agreement provides KHNP with a foothold to expand its presence in the next-generation SMR sector beyond Asia into North America. Notably, this is KHNP’s first partnership with a 4th generation SMR company, marking a significant step for the domestic nuclear industry to engage in the future global SMR supply chain.

TerraPower plans to accelerate the commercialization of Natrium through this agreement. The company is constructing a 345 MW demonstration plant in Wyoming, western USA, targeting completion by 2030. This project, which will generate enough electricity for 250,000 households, is supported by the U.S. Department of Energy (DOE) with nearly $2 billion (approximately 2.6 trillion KRW) covering about half of the technology development and construction costs as part of the Advanced Reactor Demonstration Program (ARDP). TerraPower is conducting feasibility studies with PacifiCorp, the power subsidiary of Berkshire Hathaway, to build up to five Natrium reactors by 2033. In this study, PacifiCorp confirmed the need to build two Natrium reactors to replace long-operating coal-fired power plants in Utah, USA.

The World Economic Forum (WEF) forecasts the SMR market to grow at an average annual rate of 22% until 2040, while the UK’s National Nuclear Laboratory (NNL) projects the SMR market size to reach up to approximately 630 trillion KRW by 2035.

Kim Jun, Vice Chairman of SK Innovation, stated, "The cooperation among SK, KHNP, and TerraPower is significant in strengthening the Korea-U.S. nuclear alliance at a time when energy security is increasingly important. This collaboration in the 4th generation SMR market will be a driving force leading the nuclear industry ecosystem."

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