Doosan Enerbility’s small modular reactor (SMR) parts making plant in Korea
Doosan Enerbility Co., a leading South Korean power plant engineering company, is slated to supply nuclear reactor equipment worth 2 trillion won ($1.46 billion) to Nuscale Power Corp., a US-based small modular reactor (SMR) design firm.
NuScale, the world’s largest SMR design company and nuclear fission technology provider, is in the final stages of a $37 billion deal to supply 24 SMRs to Standard Power, a US information technology infrastructure firm.
NuScale and its financial investor ENTRA1 Energy LLC are working on details of the deal with Standard Power and an announcement is expected over the next few weeks, industry sources said on Sunday.
As part of the deal, Doosan Enerbility will supply key parts, including reactors and steam generators, to NuScale, people familiar with the matter said.
John L. Hopkins, chief executive of NuScale, visited Doosan’s headquarters in Korea and toured its SMR manufacturing plant last month.
Aerial view of NuScale Power’s small modular reactor (SMR) model
During his stay in Korea, Hopkins met with Kim Jong-du, vice president and head of the nuclear power plant business at Doosan, to discuss future projects, including equipment supply schedules, sources said.
With its track record of building 34 large nuclear power plants worldwide, Doosan is a major stakeholder in NuScale.
In 2019, Doosan invested $44 million in the US company. In 2021, the Korean company poured an additional $60 million into NuScale and secured an exclusive right to build core SMR equipment for the US firm.
For a stable supply of SMR equipment, Doosan Enerbility has also constructed a dedicated factory in Changwon, Korea.
Based in Oregon, NuScale Power is the world’s leading SMR technology company with its SMR receiving design approval from the US Nuclear Regulatory Commission (NRC) in 2020.
NuScale employees check an SMR test facility
NuScale Power’s SMR module is built based on pressurized water-cooled reactor technology, enabling its nuclear reactor to stay stable even without power during an accident, according to the US company.
NUCLEAR INDUSTRY’S GAME CHANGER
Small modular reactors, designed to produce less than 300 megawatts-electric, are regarded as next-generation energy sources due to their lower investment costs and fewer carbon emissions than existing large nuclear power plants.
SMRs are also safer as they can be cooled without complicated safety devices, thus making them ideal as a source of power for data centers amid the artificial intelligence boom.
With major countries increasingly adopting safe and sustainable energy sources, small modular reactors are expected to be commercialized within the next five to 10 years.
South Korean President Yoon Suk-yeol (left at front) looks at a model of a domestically developed nuclear reactor at Doosan Enerbility’s plant on June 22, 2022
According to British research firm IDTechEx, the global SMR market is forecast to grow to $72.4 billion in 2033 and $29.5 billion by 2043.
The number of SMR developers has also grown rapidly to 98 as of April from 42 in March 2023, according to the Nuclear Energy Agency under the Organization for Economic Cooperation and Development.
DOOSAN’S RIVALS
Doosan, which entered the SMR market seven years ago, plans to spend 300 billion won by the end of next year to expand and upgrade its production facilities.
“Once the SMR market takes off, Doosan will become the world’s largest foundry player to make smaller reactors under contract,” said an industry executive.
Competition to take the lead in the SMR market is intensifying, with NuScale Power at the forefront, followed by TerraPower LLC., X-Energy, GE Hitachi Nuclear Energy and Holtec International.
TerraPower, a US venture founded by billionaire Bill Gates designs and develops small modular reactors
NuScale, in partnership with its Korean partners, is scheduled to build Korea’s first SMR in Uljin, North Gyeongsang Province.
NuScale’s Korean partners include GS Energy Corp., an energy unit of GS Group; Samsung C&T Corp., a construction and engineering subsidiary of Samsung Group.
GS Energy and Samsung C&T have invested $40 million and $70 million in NuScale.
SK Group’s holding firm SK Inc., its energy and battery affiliate SK Innovation Co. and Korea Hydro Nuclear Power Co. (KHNP) last year joined hands with TerraPower LLC., a US SMR developer founded by Bill Gates, to cooperate on the development of next-generation nuclear power technologies.
SK Group has invested $250 million in TerraPower to venture into the SMR business.
HD Korea Shipbuilding & Offshore Engineering Co. (KSOE) has invested $30 million in TerraPower as part of its push to develop nuclear power plant ships.
KHNP, Korea’s state-run nuclear power operator, is working to develop a Korean-type SMR by 2030.
Hyundai Engineering & Construction Co. (Hyundai E&C) and its US nuclear reactor partner Holtec International are also working on an SMR design.
By Hyeon-woo Oh and Woo-Sub Kim
ohw@hankyung.com
In-Soo Nam edited this article.
