SK Innovation(096770) proposed a phased energy cooperation plan linking liquefied natural gas (LNG) and small modular reactors (SMRs) for Vietnam, where power demand is rising as artificial intelligence (AI) and advanced industries grow.
SK Innovation said on the 29th that CEO Choo Hyeong-wook visited Vietnam on the 16th–17th and met with officials from the Ministry of Industry and Trade, state energy company PVN (PetroVietnam), and its power subsidiary PV Power to discuss cooperation in energy and advanced technology.
SK Innovation expects Vietnam's power demand to increase with the growth of AI data centers and semiconductors, and proposed in the short term to expand power generation using LNG. It then put forward a plan to broaden cooperation in the long term to the next-generation SMR sector.
In particular, the plan is to supply fuel to Vietnam's gas-fired power projects by leveraging gas field asset secured in the United States and Australia and a portfolio of long-term LNG contracts. The approach is to diversify the supply chain to reduce geopolitical risks and build a stable fuel procurement system.
In the long term, it will also pursue cooperation in the SMR sector based on "Natrium," a fourth-generation reactor technology being developed with TerraPower in the United States. Natrium is a next-generation nuclear power technology designed to flexibly respond to changes in power demand by combining a reactor with an energy storage system. SK Innovation is targeting commercialization in 2030.
Choo said, "With power demand surging due to AI development, LNG can be an appropriate solution for energy security for the time being," adding, "Once SMR technology verification and commercialization are completed, we look forward to establishing a long-term partnership with PVN in the nuclear power sector."
Along with this, SK Innovation also plans to apply a specialized energy-industrial cluster (SEIC) model, based on the Quynh Lap LNG combined-cycle power generation project underway in Vietnam, to attract AI data centers and advanced manufacturing facilities near the power plant.