KB Securities noted on the 2nd that attention should be paid to the results announcement of the U.S. Department of Energy's "3.5-generation small modular reactor (SMR) program" in the second half of this year and to the two sites selected for the first 3.5-generation SMR construction in the U.S.
If selected for construction, it will not only receive a support budget of $400 million (about 540 billion won) but also holds significant symbolic meaning in declaring the "return" of the U.S. nuclear industry.
Jang Moon-jun, a researcher at KB Securities, assessed that Michigan's Palisades and Tennessee's Clinch River are strong candidates for the 3.5-generation SMR construction site. Michigan's Palisades is led by Holtec and its core partner Hyundai E&C. Tennessee's Clinch River is being pursued by TVA and others.
Researcher Jang explained that the two sites can convey a "strategic message." Michigan's Palisades is pushing for the reactivation of a large nuclear power plant that was the first to be shut down in U.S. history, while preparing for the construction of two SMR-300 reactors in collaboration with Hyundai E&C. Jang stated, "This is the first case where the legacy of nuclear power reactivation meets the technology of SMR construction at one site."
Tennessee's Clinch River is also a 20-minute drive from the Oak Ridge National Laboratory, which was the core base for the nuclear weapons development program known as the "Manhattan Project." Clinch River is also the area where the first fast reactor initiative in the U.S. was abandoned in the 1980s.
Researcher Jang said, "If the SMR construction begins in Clinch River with government support, it could signify the restoration of the past glory of the U.S. nuclear industry that withdrew."
The reason researcher Jang believes the significance of the 3.5-generation SMR construction is important is that it is not easy to take the first step in large nuclear power plant construction in a short period. He noted, "With large nuclear power plant construction unlikely to materialize immediately, the selection of construction sites that can carry strategic messages is becoming more important," indicating the need for greater attention to Holtec and its core partner Hyundai E&C.
The review results of the 3.5-generation SMR project are expected to be announced as early as this month or around October. Following the selection, contract negotiations and project commencement will follow.