SK Innovation said on the 21st that it sold part of its equity in TerraPower, a U.S. next-generation Small Modular Reactor (SMR) developer, to Korea Hydro & Nuclear Power Co. (KHNP). The investment marks the first time a domestic energy state-owned company has directly invested in a global SMR developer.

SK Innovation and SK Inc. invested in TerraPower in Aug. 2022 and became the second-largest shareholder. Even after the partial equity sale, they will maintain their position as the second-largest shareholder. KHNP completed a review by the Committee on Foreign Investment in the United States (CFIUS) in Dec. last year regarding the acquisition of TerraPower equity, laying the institutional groundwork to participate in the global SMR market.

From left, Kim Muhwan, head of SK Innovation Energy Solution Business, Park Insik, head of export business at KHNP, and Chris Levesque, CEO of TerraPower, reaffirm their commitment to the SMR alliance. /Courtesy of SK Innovation

SK Innovation, TerraPower, and KHNP plan to sequentially sign definitive commercialization agreements for additional SMR construction in the United States and overseas and for the introduction of SMRs in Korea following this investment, and to strengthen cooperation to expand the global SMR supply chain. The three companies signed an "SMR development and demonstration memorandum of understanding" in Apr. 2023.

Founded by Bill Gates in 2008, TerraPower is building the world's first commercial SMR plant in Wyoming, scheduled for completion in 2030. SMRs, through modular designs, are expected to sharply reduce construction periods and expense and enable rapid capacity additions, allowing flexible responses to surging electricity demand.

TerraPower's Natrium® SMR technology is considered a game changer that can complement highly variable renewable energy by using an energy storage system to flexibly adjust output based on electricity demand.

SK Innovation plans to combine its accumulated competitiveness in energy and materials with KHNP's world-class nuclear power plant construction and operation experience to build an SMR ecosystem for various industrial sites, including domestic and overseas data centers, and to provide tailored integrated energy solutions to address power supply-demand challenges.

※ This article has been translated by AI. Share your feedback here.