TerraPower Breaks Ground on SMR Demonstration Site in Wyoming, USA
Founder Bill Gates and Wyoming Governor Attend Ceremony
Power Plant to Supply 250,000 Households Simultaneously by 2030
TerraPower, a nuclear technology innovation company invested in by SK, has broken ground on its demonstration site in Wyoming. TerraPower is the first U.S. company to begin construction of a 4th generation SMR (small modular reactor).
SMR Nears Commercial Operation by 2030... A Power Game Changer Recognized by Bill Gates and SK
On the 10th (local time), TerraPower held a groundbreaking ceremony in Wyoming, U.S., officially starting construction of the 4th generation SMR reactor called 'Natrium' along with other power generation equipment and related facilities. The Natrium reactor is a fast reactor cooled by sodium, which has a high boiling point of 880 degrees Celsius, allowing for increased power output while producing less waste and offering superior safety. TerraPower aims to complete the SMR demonstration site and begin commercial operation by 2030.
The groundbreaking ceremony was attended by TerraPower founder Bill Gates, TerraPower CEO Chris Levesque, Wyoming Governor Mark Gordon, SK On Vice Chairman and SK Americas CEO Yoo Jung-jun, and SK㈜ Green Division Head Kim Mu-hwan.
SK㈜ and SK Innovation secured lead investor status by investing $250 million (approximately 300 billion KRW) in TerraPower in 2022. If the demonstration project succeeds, SK is expected to lead TerraPower’s expansion into the Asian market.
The demonstration site will be built on the site of a coal-fired power plant owned by PacifiCorp, a power company owned by global investor Warren Buffett, with a capacity of 345 MW (megawatts), enough to power approximately 250,000 households simultaneously.
Additionally, TerraPower is considered the frontrunner in the race to commercialize SMRs, receiving about $2 billion (approximately 2.7 trillion KRW) in support as part of the U.S. Department of Energy’s (DOE) Advanced Reactor Demonstration Program (ARDP). Energy industry experts commonly predict that the company that first succeeds in demonstration will lead the SMR market.
TerraPower held a groundbreaking ceremony on the 10th (local time) in Wyoming, USA, officially starting construction on the 4th generation SMR demonstration complex. The ceremony was attended by TerraPower founder Bill Gates (center in the photo), TerraPower CEO Chris Levesque (fifth from the left), and Wyoming Governor Mark Gordon (third from the left). Photo by SK Corp.
4th Generation SMR Reduces Risk by Not Using Water... Responsible for Power Demand in the AI Era
SMRs are small nuclear reactors with reduced power capacity and size compared to traditional nuclear plants, making them suitable for construction near power demand centers such as cities and industrial complexes due to their smaller site requirements and higher safety. Construction time and costs are significantly lower than traditional nuclear plants, prompting nuclear technology powerhouses like the U.S., South Korea, France, Russia, and China to accelerate SMR development and commercialization.
TerraPower is leading the era of non-light water reactors that do not use water as a coolant. Third-generation light water reactors use water to cool the high-temperature nuclear fuel, but 4th generation non-light water reactors use liquid metals, gases, or other coolants instead of water. Reactors operate more efficiently and economically at higher temperatures, and 4th generation reactors can operate at much higher temperatures than previous generations because they do not use water. Not using water also eliminates the risk of contaminated water in emergencies.
Meanwhile, with the rapid growth of the AI industry, often called the "electricity-hungry hippo," global power demand is exploding, and SMRs are gaining attention as a promising solution.
The International Energy Agency (IEA) published the 'Electricity 2024' report, forecasting that global electricity demand will increase by an average of 3.4% annually through 2026. In particular, electricity consumption in AI, data centers, and cryptocurrency sectors is expected to more than double during the same period. By 2026, global electricity consumption in these sectors is projected to exceed 1000 TWh (terawatt-hours), roughly equivalent to the annual electricity usage of countries like Japan, the Netherlands, or Sweden.
Kim Mu-hwan, head of SK㈜’s division, stated, "TerraPower is rapidly approaching commercialization through strong technology and partnerships with the U.S. government and private companies. We plan to explore various business opportunities in the Asian region through cooperation with TerraPower in the future."
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