SK-backed TerraPower breaks ground on nuclear power plant in US

Bill Gates’ nuclear energy firm TerraPower LLC, backed by South Korean conglomerates SK Inc. and HD Hyundai Co., has broken ground on its first small modular reactor (SMR) demonstration project expected to cost up to $4 billion in the US.

TerraPower started construction on the site for nuclear power facilities in Kemmerer, Wyoming on June 10, according to SK on Tuesday. The US company will begin building its next-generation nuclear reactor Natrium after winning a construction permit from the Nuclear Regulatory Commission.

Natrium uses sodium as a coolant, unlike many conventional nuclear reactors that use water. The reactor can absorb more heat and boost power output as the boiling point of liquid sodium is 880 degrees Celsius, compared with 100 degrees for water, thus generating power in a more cost-effective and eco-friendly way.

“I’m proud of all the partners and people who helped get the most advanced nuclear project in the world built in Kemmerer, Wyoming. I believe that TerraPower's next-generation nuclear energy will power the future of our nation – and the world,” the Microsoft co-founder said, according to TerraPower's press release.

“By using its strong technologies, TerraPower is making quick steps towards commercialization through partnerships with the US government and private sectors. We will identify a variety of business opportunities in Asia in collaboration with the US company,” said Kim Moo-hwan, executive vice president and green division head of SK.

Established by Gates in 2008, TerraPower attracted $250 million from Korea’s No. 2 conglomerate SK and petrochemical affiliate SK Innovation Co. and $30 million from shipbuilding giant HD Hyundai in 2022.

Industry insiders say SK will lead TerraPower’s advancement into Asia if the demonstration project, half of which will be invested in by the US Department of Energy, proves successful.

Located in the coal plant site of Warren Buffett-owned energy firm PacifiCorp, Natrium is set to be a 345-megawatt electrical (Mwe) sodium-cooled fast reactor. The output can be boosted to 500 Mwe for more than five and a half hours, which can power up to 400,000 homes.

TerraPower plans to complete the construction project and begin commercial operation in 2030, providing nuclear power to residents.

The World Economic Forum (WEF) predicts that the global small modular reactor (SMR) market will grow at an average annual rate of 22% by 2040.

As SMRs can reduce the construction period and the size of the site compared with large-scale nuclear power plants, there is a growing demand for the installation of such reactors near cities and industrial complexes with significant energy needs.

Write to Se-min Kim at unijade@hankyung.com

Jihyun Kim edited this article.