[Constructionin] "The Future of Nuclear Power is 'Small'... Aiming for the World's First Production in 6 Years"

Choi Young, Executive Director of Hyundai Engineering & Construction New Energy Division
30 Years Dedicated to Nuclear Power
Started Investing in Small Modular Reactors During Nuclear Power's Dark Age

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Choi Young, Executive Director of Hyundai Construction New Energy Division. Photo by Huh Younghan younghan@

"Just as there are car models like Genesis and Morning, the nuclear power market is the same. Until now, the focus has been solely on large-scale nuclear power, but going forward, it will be divided into small and large."

Choi Young, Executive Director and Head of the New Energy Division at Hyundai Engineering & Construction, said in an interview with Asia Economy on the 18th, "The era when you can see SMRs (Small Modular Reactors), which are small nuclear power devices, all over the world is coming soon."

Having dedicated 30 years solely to nuclear power, he explained, "As the importance of energy security and carbon neutrality grows, European countries are paying attention to nuclear power these days, and SMRs are receiving high marks in terms of economic feasibility and safety."

Small Nuclear Reactors Excel in Economic Feasibility and Safety

Recently, the perspectives of various countries on nuclear power have been changing. With the increased importance of energy security, the dark age of nuclear power following the Great East Japan Earthquake is lifting. Orders for nuclear power plants have begun, centered on Europe, and the price of uranium, a key nuclear fuel, is at an all-time high. In particular, interest in Small Modular Reactors (SMRs), which can be installed even in urban areas, has grown. Domestically, Hyundai Engineering & Construction has teamed up with the U.S. company Holtec to pioneer the world's first commercialization of SMRs.

SMRs are small nuclear reactors that produce output of 300 megawatts (MW) or less, about a quarter of the capacity of large nuclear reactors. The project cost is only about one-fifth. Large nuclear plants cost over 10 trillion won to build once. SMRs can be built for 2 to 3 trillion won. Even countries with smaller economies face no financial burden in funding. They can be installed in countries that require relatively small amounts of electricity. They can be built anywhere, saving social costs.

For example, if there is land, it can be installed in Gyeonggi Province, and the power can be used directly in Seoul. This differs from typical large nuclear plants, which are located on the coast. When nuclear plants are installed on the coast, various resources are consumed from building transmission lines and towers to compensation costs. Unlike large nuclear plants, SMRs operate safely by automatically controlling the system remotely in dangerous situations.

SMR bird's-eye view

Hyundai Engineering & Construction Handles Design, Procurement, and Construction

Executive Director Choi's goal is to secure a leading position in the SMR market. Creating the world's first SMR is the most important. To this end, he partnered with the U.S. company Holtec. After personally knocking on the doors of dozens of nuclear development companies worldwide and working tirelessly, he chose Holtec as a partner. This was in 2020, when the U.S. was intensifying nuclear research to seize energy hegemony.

He said, "If developing an SMR is compared to developing a new sports car, Holtec is the company that makes the high-performance engine. They build the reactor inside the SMR. Hyundai Engineering & Construction is responsible for the other processes such as the transmission, steering system, car body steel, and assembly." He added, "By combining the strengths of the two companies, we can showcase the first SMR unit much faster," and "We are striving to stay ahead of competitors by collaborating with those who have core technology."

The two companies formed 'Team Holtec' and entered the SMR technology development project led by the UK Nuclear Authority. Team Holtec has also expanded into Ukraine. After installing a 300MW SMR pilot, they are preparing to build 20 more units. Executive Director Choi said, "While other foreign companies withdrew due to the war, Holtec stayed in Ukraine," and "Once the war with Russia ends, full-scale deployment will begin."

He emphasized, "The goal is to showcase the first unit in the U.S. by 2030," and "Compared to competitors in other countries, Team Holtec's development speed is the fastest." The International Atomic Energy Agency expects the global SMR market to grow to 630 trillion won by 2035.

Choi Young, Executive Director of Hyundai Construction New Energy Division. Photo by Huh Younghan younghan@

They also expect profitability to expand through SMRs. Hyundai Engineering & Construction mainly handled construction during large nuclear plant projects, which involved EPC (Engineering, Procurement, and Construction). However, with SMRs, they have expanded their scope. Executive Director Choi said, "Although there are parts done with Holtec, Hyundai Engineering & Construction will handle the entire EPC process for SMRs," adding, "If we compare it to the housing business, it's like handling development, implementation, construction, and sales all by ourselves, so SMR profitability is expected to be high."

Executive Director Choi joined Hyundai Engineering & Construction's Plant Business Division in 1992 and was responsible for domestic nuclear power plants such as Yeonggwang, Wolseong, and Shin-Kori, as well as the UAE Barakah nuclear power plant overseas. Except for two years when he briefly worked on thermal power generation due to reduced energy consumption after the foreign exchange crisis, he has dedicated 30 years solely to nuclear power.