By Kim Hyun-bin
SK Group is seeking to enter the market for next-generation small modular reactors (SMR) to expand its portfolio in the clean energy sector. The company is considering the acquisition of a 10 percent stake in TerraPower, a next-generation nuclear reactor venture established by Microsoft founder Bill Gates.
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| SK Group Chairman Chey Tae-won |
TerraPower was founded in 2006 with a $35 million investment. It has been developing a next-generation SMR. At the end of last year, TerraPower announced that it would invest $4 billion with the U.S. Department of Energy to build a 345 megawatt SMR in Kemmerer, Wyoming. Warren Buffett's power company is also involved in the project, which is expected to be completed in 2028 and scheduled to operate for 60 years.
The investment in TerraPower means that SK, which is trying to reorganize its existing fossil fuel-centered energy business, will foster next-generation nuclear reactors in line with its eco-friendly zero-carbon drive at its core.
Combining Korea's nuclear power technology, SK Group's capabilities ranging from semiconductors to batteries and Bill Gates' global network can spur the commercialization of SMRs.
"We are reviewing whether to enter the SMR business, but nothing has been set at the moment. We are reviewing our investment in TerraPower, but we are also looking at other companies," an SK Group official said.
In addition to SK Inc., SK Innovation, the group's representative energy company, and SK E&S, which is transforming into a new and renewable energy company, will form a broad cooperative relationship related to next-generation nuclear reactors.
Following the energy crisis that hit Europe last fall and the geopolitical unrest caused by Russia's invasion of Ukraine, interest in nuclear power in Europe has once again been renewed, including in France and Britain.
New opportunities are expected in Korea, as President-elect Yoon Suk-yeol declared the abolition of the Moon Jae-in government's nuclear-free policy and in fact, promised to foster the nuclear power industry.
The SMR being developed by TerraPower uses liquid metal sodium instead of water as a coolant. Liquid sodium has a higher boiling point than water, making it less likely to overheat in an accident.
In addition, spent nuclear fuel from light-water reactors can be reprocessed for use. As SMRs are attracting attention as a relatively safe and economical next-generation energy source, not only Korea, but the U.S, China, Japan, France, and Russia are competing to develop them.
