Key Republican Figure Leads Nuclear Project in Texas
Aiming for Groundbreaking in Second Half of Next Year After Fast-Tracked Approval
MOUs Signed with Hyundai E&C, Doosan Enerbility, and Samsung C&T
A nuclear power plant named "Trump" is currently under construction in Texas, United States. Backed by the full support of the Trump administration, the project is likely to proceed at a rapid pace. On September 25, Meritz Securities suggested in its report, "What Is the Donald Trump Nuclear Power Plant?" that Korean companies which have signed Memorandums of Understanding (MOUs) with the Trump nuclear power plant developer could also benefit from the project.
A Nuclear Power Plant with a Distinct Political Identity
Fermi, a new American developer, is building a massive 11GW power complex near Amarillo, Texas, under "Project Matador" to meet the electricity demands of artificial intelligence (AI) data centers. The project includes four large-scale AP1000 nuclear reactors and a 2GW small modular reactor (SMR).
Fermi plans to begin construction of the large-scale nuclear reactors in the second half of 2026. This is a remarkable pace, considering that approval for a Combined Operating License (COL) from the U.S. Nuclear Regulatory Commission (NRC) typically takes more than three years. Meritz Securities analyst Moon Kyungwon explained that this rapid progress is possible due to political factors, stating, "Attention should be paid to the political background. Fermi's management is aligned with the Republican Party, and the campus where the four large reactors of the Matador Project will be located has been named 'Donald J. Trump.'" Recently, the Trump administration has been pressuring the NRC to expedite approvals for large-scale nuclear power plants and SMRs, and has also intervened in the appointment of NRC commissioners.
Korean Companies Have Already Signed MOUs
Fermi, established in January this year, has recently begun pursuing an initial public offering (IPO), signaling the official launch of the project. In June, the company submitted a COL application for a 4GW Westinghouse facility to the NRC.
Fermi is also working closely with Korean companies. In July, it signed an MOU with Hyundai Engineering & Construction for a six-month Front-End Engineering Design (FEED) and to begin engineering, procurement, and construction (EPC) in the third quarter of next year. In August, it signed MOUs with Korea Hydro & Nuclear Power, Doosan Enerbility, and Samsung C&T for cooperation in project development, potential equity investment, and securing equipment and materials.
U.S. Aims to Start Construction of 10 Reactors by 2030
Including Fermi's Texas nuclear power plant, the U.S. administration aims to begin construction of ten large nuclear reactors by 2030. Special attention should be paid to two projects that have secured COLs from the NRC but have not yet started construction: FPL's "Turkey Point 6 & 7" and Duke Energy's "William States Lee 1 & 2." Since regulatory approvals are already in place, these projects have the potential to move forward quickly.
Domestic nuclear-related stocks have experienced sideways movement or declines in the short term due to a lack of new events since the U.S.-Korea summit in August. Analyst Moon Kyungwon emphasized, "Regardless of stock prices, the growth of the industry is becoming increasingly tangible," and highlighted the late October to early November APEC summit in Gyeongju as a potential trigger for concrete U.S.-Korea nuclear cooperation.
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