Samjong KPMG-Korea Nuclear Cooperation Foundation Publish Report Presenting SMR Application Areas

More than Half of 7 Affiliates from Top 10 Groups Enter Market
Proposing SMR Utilization Plans by Sector: Power Generation, Hydrogen, District Heating, Space, and More

Samjong KPMG and the Korea Atomic Energy Cooperation Foundation jointly published the report titled ‘SMR Dreaming to be the All-rounder of the Future Energy Market’ on the 5th. SMR refers to small and medium-sized modular reactors with a capacity of 300MW or less compared to conventional nuclear power plants. Currently, more than half of the subsidiaries of Korea’s top 10 conglomerates, totaling seven companies, are entering the SMR market.

The SMR market, which is being competitively developed worldwide with the goal of commercialization by 2030, is expected to grow to a scale of $300 billion by 2040. The report presents fields where SMRs can be utilized, identifying the nuclear power generation sector as the foremost. The expected demand for SMRs in the power generation sector is projected to reach 72GW by 2050, an increase of 51.5%. Unlike large nuclear power plants, SMRs can adjust power output according to fluctuations in electricity supply and demand. They are also suitable for supporting the unstable intermittency of renewable energy and serving as distributed power sources. Their applicability at EV charging stations, such as for large electric truck charging, is also gaining attention.

The report also highlights hydrogen, district heating, and space sectors as key areas for SMR utilization alongside nuclear power. When producing hydrogen via nuclear power, the only byproduct is oxygen (O2), making it more environmentally friendly and economically advantageous than hydrogen produced from natural gas. SMRs can actively be used in district heating by supplying hot heat, operating factories, and desalinating seawater. Lastly, in the space industry, nuclear power is a highly efficient energy source for space exploration and is expected to be used as a power source for launch vehicles such as satellites and space bases.

Kang Jeong-gu, Vice President of Samjong KPMG, stated, “It is a natural progression that SMRs, which can compensate for the intermittency of renewable energy sources and have diverse applications, are expected to be the next-generation energy source for net zero.” He added, “We hope that the Korean government and domestic companies will seize this golden time and secure opportunities to lead the new market.”