Doosan Enerbility, SK Inc., Samsung Heavy Industries and other Korean companies are rushing to develop technologies for small modular reactors (SMRs), a type of next-generation nuclear reactor that are smaller and potentially safer than conventional nuclear reactors, according to industry officials, Tuesday.
This trend has been accelerating in recent months as President-elect Yoon Suk-yeol has pledged to revive nuclear power as an important energy source and pledged to make Korea a nuclear reactor powerhouse country again, a major shift from the Moon Jae-in administration's nuclear phase-out policy of the past five years.
Industry analysts and officials say that SMR technology, which is cheaper and potentially safer than existing large-sized nuclear power plants, will become the core of the next-generation nuclear power plant industry, adding that it is too early to draw conclusions because the incoming administration's energy plan is scheduled to come out later in 2022.
They presumed that if Korean companies apply the know-how they have accumulated in the construction, management and design of conventional nuclear power plants to SMRs, it will present new opportunities for the Korean nuclear power plant business.
"SMRs are not yet replacements for large nuclear power plants. They still have a long way to go. However, SMRs cost less than large-scale plant construction and have various uses, so demand will eventually soar after the 2030s, and that will be an opportunity for countries such as Korea, which have quality technology for nuclear power plants," Moon Joo-hyun, an energy engineering professor at Dankook University, said.
Moon said that several companies around the world, including U.S-based ones, are developing SMR technologies and he presumed that Korean companies will stand out in areas where they can produce high-quality small nuclear power plants in addition to technology development.
The U.K.'s National Nuclear Laboratory predicts that SMRs will lead the energy market in the long run, with about 650 to 850 units expected to be built by 2035, and the annual market size estimated at around 150 trillion won ($121.5 billion).
"The design and development of nuclear power plants are important, but it is also important to build them with high-quality equipment so that the power plants can survive for 50, 60 or 80 years in a harsh environment. As they have to function properly while enduring high radioactive materials and high pressure for a long time, there are only a few companies ― including Korean companies ― that can make such high-quality products. I think Korean companies are likely to be in charge of the joint development, production and management of SMRs," he added.
Among Korea's companies, Doosan Enerbility, formerly called Doosan Heavy Industries & Construction, is considered the most visible company affiliated with the small nuclear reactor business, as it has worked with numerous SMR design firms.
The company, which graduated from state creditor management in February, changed its name to Enerbility in March. The company's new name shows its goal to focus on new energy technologies.
In 2019, Doosan Enerbility invested $44 million in U.S.-based SMR company, NuScale Power, along with domestic investors. The company injected an additional $60 million into the U.S. firm in July 2021 and signed with U.S. SMR firm X-energy to perform engineering services for its SMR, the Xe-100.
"Doosan is the only company that has its own technology, among the companies that make investments in nuclear power plants in Korea," an official in the local nuclear power industry said, requesting anonymity. "In particular, Doosan has a partnership with NuScale Power, which is said to be a leader in the SMR sector. Currently, NuScale is the only company that has passed several certification steps for SMRs with the U.S.' Nuclear Regulatory Commission."
"Doosan Enerbility is a global technology company in the field of large nuclear power plants, and based on this know-how, it is becoming a global operator in SMR technology development. The company is expected to expand its SMR manufacturing business by working with around 70 companies in the future," the official added.
In addition to Doosan, Samsung C&T and GS Energy also have invested in NuScale Power.
SK Group is also actively taking steps toward the SMR business, as SK Group Chairman Chey Tae-won pledged in 2021 to cut carbon emissions 200 million metric tons by 2030. SK Group hopes to become carbon neutral by around 2035.
Recently, industry sources said SK Inc., the holding company of SK Group, is expected to invest in TerraPower, a U.S. SMR developer. TerraPower was founded in 2006 by Microsoft founder Bill Gates with a $35 million investment.
An SK Inc. official agreed that the group is greatly interested in the SMR business, but denied the link to TerraPower.
"To achieve the group's net zero goal, we have been considering investing in energy sources that can emit less carbon. In that context, the company is currently investing in the hydrogen economy. It is true that we are reviewing investing in SMR companies, but there is no official position yet on which company we will be with. It might be TerraPower or other companies," the SK Inc. spokesman said.
Samsung Heavy Industries is eyeing the floating SMR sector, given that the company is one of the leaders in the off-shore plant business. Early this month, the company signed an agreement with Seaborg, a Danish nuclear reactor developer, to develop floating nuclear power plant barges.
The floating nuclear power plant will be able to deliver up to 800 megawatts of electricity. In addition to the cooperation with Seaborg, Samsung is also considering placing a hydrogen and ammonia production plant next to the floating nuclear power plant for the production of hydrogen and ammonia.
Competition in SMR development is underway in nuclear power plant powerhouse nations such as the United States, the U.K. and Russia, to occupy shares in the global SMR market. An official of the Korea Hydro & Nuclear Power Korea said, "Korea is also developing its own SMR that has improved economic aspects and safety. We aim to obtain licenses in 2028, and plan to enter the nuclear power plant export market in earnest."
