Bill Gates, co-founder of Microsoft (MS) and founder of U.S. Small Modular Reactor (SMR) developer TerraPower, visited Korea and, in back-to-back moves, laid out concrete cooperation plans with major financial investors SK and HD Hyundai as well as with domestic nuclear power corporations including Doosan Enerbility and Hyundai Engineering & Construction.
SK Innovation secured opportunities to develop TerraPower's SMR business in the United States and overseas markets and to take part in projects in the U.S. SK is TerraPower's No. 2 shareholder and has been in partnership since the SMR business development stage.
HD Hyundai took on primary equipment manufacturing. Hyundai Engineering & Construction will handle engineering, procurement, and construction, while Doosan Enerbility will be responsible for manufacturing key reactor-related equipment.
According to the business community on the 14th, Gates arrived late on the 13th and met that day with SK Group Chairman Chey Tae-won and HD Hyundai Chairman Chung Ki-sun, among others. Gates also met with Prime Minister Han Seong-sook as well as Minister Kim Jung-kwan of the Ministry of Trade, Industry and Resources.
What makes Gates' visit particularly significant is that TerraPower's business stage has shifted from before. TerraPower, an SMR development corporations founded by Gates, has moved beyond technology development and investment into the commercialization stage. TerraPower is developing and has begun building a fourth-generation SMR that uses sodium (natrium), not light water, as the coolant to transfer heat generated in the reactor to the steam generator.
In March, the U.S. Nuclear Regulatory Commission (NRC) approved the construction permit for "Natrium," TerraPower's SMR power plant project, Unit 1 in Kemmerer, Wyoming. TerraPower is pushing ahead with construction of the Natrium project, aiming to begin commercial operation in 2031. This is a time when cooperation with domestic corporations that have experience from manufacturing primary equipment for large nuclear plants to construction is needed.
◇ SK secures opportunities to develop TerraPower's SMR business and participate in U.S. projects
After the meeting among Chairman Chey, Gates, and the Minister Kim concluded that day, SK Innovation and TerraPower signed a "term sheet for key conditions to promote a global joint business." Through this, SK Innovation secured an opportunity to embark on TerraPower's SMR business development in the United States and elsewhere. In the United States, TerraPower is expected to take the lead, while outside the United States, SK Innovation is expected to play to its strengths.
Gates has strengthened ties with SK, meeting Chairman Chey on each visit to Korea. That stems from SK being TerraPower's No. 2 shareholder. When TerraPower raised $750 million in 2022, SK Inc. and SK Innovation participated and invested a total of $250 million. Although SK Innovation sold part of its TerraPower equity to Korea Hydro & Nuclear Power Co. (KHNP) in January this year, it has maintained its status as the No. 2 shareholder.
From Aug. 20 to 22 last year, during a visit to Korea, Gates met three times with Chairman Chey Tae-won and other SK officials. On Aug. 21 last year, Gates had a dinner meeting with Chey at SK Seorin Building in Seoul and discussed ways to expand cooperation in SMRs and vaccines.
◇ HD Hyundai to handle primary equipment; Doosan to handle key components
HD Hyundai is set to handle manufacturing of TerraPower's primary equipment. The decision follows on from the "three-party business agreement for cooperation on the next-generation Natrium reactor project" signed in May by HD Hyundai, TerraPower, and Hyundai Engineering & Construction. HD Hyundai plans to ramp up investment in production facilities ahead of commercialization, aiming to supply two to three reactor vessels per year.
For discussions on cooperation plans, HD Hyundai Chairman Chung Ki-sun and Gates met with TerraPower CEO Chris Levesque and Hyundai Engineering & Construction CEO Lee Han-woo at an undisclosed location in Seoul that day. Chairman Chung of HD Hyundai has been meeting Bill Gates intensively of late. The two signed an agreement in the United States in March last year to expand the manufacturing supply chain for commercialization of the Natrium reactor. In August last year, they reviewed the progress of cooperation in Seoul, and in January this year, they discussed SMR cooperation plans at the World Economic Forum in Davos, Switzerland.
HD Hyundai is not only collaborating on manufacturing primary equipment, a core SMR component, but is also an investor in TerraPower. HD Korea Shipbuilding & Offshore Engineering invested $30 million in TerraPower in November 2022. In December 2024, HD Hyundai Heavy Industries won the order to manufacture the reactor vessel for the Natrium project.
Doosan Enerbility won the contract to manufacture key components for the Natrium project. Doosan Enerbility will manufacture the reactor guard vessel, the reactor support structure, and the reactor internal structures for the Natrium project.
Minister Kim Jung-kwan said, "For SMRs to do business, the capability to complete projects within planned budgets and timelines is important," adding, "Korean corporations with such capabilities can play a pivotal role in turning TerraPower's vision into reality."