Construction Companies Also Enter SMR Market One After Another... 630 Trillion Won Scale by 2035

Samsung C&T and Hyundai Engineering Invest Equity in US Companies
Diverse Projects from SMR Development to MMR Demonstration and Nuclear Plant Decommissioning

Aerial view of a small modular reactor (SMR) by NewsScale Power in the United States / Photo by Samsung C&T Corporation

[Asia Economy Reporter Noh Kyung-jo] Under the pro-nuclear power policy of the Yoon Seok-yeol administration, domestic construction companies are entering the small modular reactor (SMR) market, the next-generation nuclear power, and achieving results.

SMRs are products that complement the limitations and intermittency of renewable energy due to natural conditions by providing stable power through nuclear power. They emit almost no carbon. According to the UK’s Royal Nuclear Institute, the global SMR market is expected to grow to a maximum of 630 trillion won by 2035.

Samsung C&T Construction Division, Hyundai Engineering & Construction, DL E&C, and Hyundai Engineering are expanding their presence in the SMR sector through equity investments and demonstration projects.

Samsung C&T has invested $70 million in NuScale Power in the United States over the past two years. Through this, they said they can now actively pursue overseas projects with key partners that make up the value chain of the SMR market. The two companies are examining an SMR project led by the U.S. power utility UAMPS in Idaho, targeting commercial operation in 2029. Samsung C&T is also cooperating as a strategic partner in SMR projects in Eastern Europe, including a project jointly promoted by the Romanian government and NuScale Power.

Hyundai Engineering & Construction signed a strategic agreement in May last year with Westinghouse in the U.S. to jointly participate in the global business of large nuclear power plants (model AP1000). Earlier, in November 2021, they signed an agreement with Holtec International for joint development and business entry into SMRs. About a year later, in October last year, they held a ceremony to start detailed design and commercialization of the standard model for the first commercialization of the SMR-160.

They are also the first domestic company to undertake nuclear power plant decommissioning projects in the U.S. In March last year, Hyundai Engineering & Construction signed a nuclear decommissioning cooperation contract with Holtec to participate as project manager (PM) in the Indian Point nuclear power plant decommissioning project. They are also expected to participate in the decommissioning projects of the Oyster Creek and Pilgrim nuclear power plants in the future.

DL E&C signed a memorandum of understanding (MOU) in July last year with Canadian company Terrestrial Energy regarding SMR development and EPC (engineering, procurement, and construction) business. Their strategy is to foster SMRs as one of the future businesses by linking them with green hydrogen and ammonia production to achieve carbon neutrality.

Hyundai Engineering is leading the micro modular reactor (MMR) market. In January last year, they secured exclusive rights to the global MMR EPC business through a $30 million equity investment contract with USNC in the U.S. In June, they signed a detailed design contract for the Chalk River MMR demonstration project in Canada. Based on this, they plan to expand the MMR EPC business in Canada, the U.S., Poland, and other regions by 2029.

Group-level movements are also notable. SK Group invested $250 million in TerraPower, an SMR company founded by Bill Gates, in August last year. Samsung Electronics Chairman Lee Jae-yong visited the United Arab Emirates (UAE) last month as his first overseas trip after assuming the chairmanship. After touring the Barakah nuclear power plant, Chairman Lee emphasized, "The Middle East is a land of opportunity," adding, "Although the situation is difficult, we must act boldly and challengingly."