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Corporate investment

Doosan to ramp up small nuclear reactor investment

The strengthened US-S.Korea alliance on small nuclear reactors has prompted Doosan to resume heavy investment

By May 25, 2022 (Gmt+09:00)

2 Min read

SMRs are one of the key technology areas in the bolstered US-S.Korea alliance 
SMRs are one of the key technology areas in the bolstered US-S.Korea alliance 

Doosan Group will invest 5 trillion won ($4 billion) over the next five years, primarily in next-generation energy sectors such as small module reactors (SMRs), gas turbines, hydrogen turbines and hydrogen fuel cells, the South Korean business group said on Wednesday.

In particular, Doosan will prioritize SMRs, a type of nuclear fission reactor and a key area for which both South Korea and the US agreed to bolster their technology cooperation beyond semiconductors and rechargeable batteries during Joe Biden's Seoul trip last weekend.

About one-150th the size of a conventional nuclear reactor, SMRs are regarded as next-generation energy providers due to their safety, lower costs and operational efficiency compared with existing large nuclear power plants.

The US-based NuScale Power in 2020 became the only company to have its SMR design approved by the US Nuclear Regulatory Commission.

Doosan bought a combined $104 million worth of shares in NuScale in two rounds between 2019 and 2020. The investment led to Doosan winning a billion-dollar supply contract for key SMR equipment from NuScale.

Doosan is also trying to secure an order to supply key SMR equipment to X-energy, a US nuclear reactor company, which last year outsourced the design and manufacture of SMRs to Doosan.
 
NuScale Power’s proposed small modular nuclear reactor plant, to be located in the Idaho National Laboratory, Idaho (Courtesy of NuScale)
NuScale Power’s proposed small modular nuclear reactor plant, to be located in the Idaho National Laboratory, Idaho (Courtesy of NuScale)

GAS AND HYDROGEN TURBINES

For both gas turbines and hydrogen turbines, Doosan Enerbility in 2019 became the world’s fifth developer of gas turbines for use in 270 megawatt (MW) plants. It is now installing the turbines in a domestic plant for combined heat and power generation, which will begin test operations from next year.

Doosan is also developing an advanced model of gas turbines for use in plants with a 380 MW capacity, as well as hydrogen turbines. It sources over 90% of the components of both gas turbines and hydrogen turbines from about 340 domestic suppliers.

OTHER NEW BUSINESSES

Further, it will branch out into collaborative robots and hydrogen-powered drones, in addition to advanced materials used to store medical products and 5G antennas.

To beef up the semiconductor-related business, Doosan acquired domestic semiconductor testing company Tesna last year. 

It's the first time in 10 years for Doosan Group to unveil such a massive investment, which comes three months following the wrap-up of its creditor-led restructuring program after 23 months in February.

The group had fallen into a liquidity crisis, hit hard by the previous administration's nuclear phase-out policy as well as financial support to debt-ridden Doosan Engineering & Construction Co.

In 2020, Doosan Group was rescued by 3 trillion won in emergency funding from creditor banks on the condition that it carries out painful restructuring, including asset sales.

The five-year investment blueprint was announced almost simultaneously with those of other major Korean business groups, two weeks after President Yoon Suk-yeol began his five-year term.

Write to Kyung-Min Kang at Kkm1026@hankyung.com
Yeonhee Kim edited this article.
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