Hyundai Engineering, USNC to build micro reactor in Canada

Hyundai Engineering Co., the plant engineering and construction unit of South Korea’s Hyundai Motor Group, and Ultra Safe Nuclear Corp. (USNC) have agreed to build a next-generation micro modular reactor in Canada.

The two companies recently signed a detailed design contract for their MMR project at the Chalk River Laboratories in Ontario, Canada, according to Hyundai Engineering on Monday.

The project is joined by other partners such as Canada’s construction company PCL, and Hatch Ltd., a Canadian engineering and construction consulting firm.

When the reactor is up and running by the end of 2026, it will mark the world’s first commercial next-generation MMR, Hyundai Engineering said.

MMR is a fourth-generation nuclear energy generation system that delivers safe, clean and cost-effective electricity and heat as well as hydrogen. MMR is one of the most advanced small modular reactor (SMR) projects.

Mini reactors are attracting attention as next-generation energy providers due to their lower investment costs and fewer carbon emissions than existing large nuclear power plants.

An SMR has a power generating capacity of up to 300 megawatts electrical (MWe), compared to existing larger nuclear power plants with a 1,000 MWe capacity. A micro modular reactor usually has a 5 MWe capacity.

Hyundai Engineering began partnering with USNC in mini reactor projects in 2012 with an aim to develop an electrical high-temperature gas-cooled micro modular reactor.

Earlier this year, Hyundai Engineering secured exclusive rights to USNC’s MMR engineering, procurement and construction (EPC) business through an equity investment worth $30 million.

The Korean company said it also plans to bring its MMR business to the US and Poland by 2029.

Hyundai Engineering has been striving to transition into an eco-friendly company for sustainable growth in line with an industry-wide push for green initiatives.

The company is actively expanding its blue hydrogen and MMR businesses with an aim to have those sectors account for 10% of its annual sales and a profit margin of 20% by 2025.

Write to Eun-Ji Shim at summit@hankyung.com
In-Soo Nam edited this article.