HD Hyundai, TerraPower to commercialize next-gen SMR

South Korea’s largest shipbuilder, HD Hyundai Heavy Industries Co., is deepening its partnership with TerraPower LLC, the US nuclear venture firm founded by Bill Gates, to accelerate the commercialization of a next-generation small modular reactor (SMR).

The two companies announced on Wednesday that they have signed a strategic partnership to expand the global supply chain for critical reactor components for the Natrium reactor, a next-generation sodium-cooled fast reactor integrated with an energy storage system.

Co-developed by TerraPower and GE-Hitachi, the Natrium reactor generates electricity by using liquid sodium to lower the heat produced from fast neutron fission.

This advanced reactor is considered one of the safest and most technologically refined SMRs available, with approximately 40% less nuclear waste production than conventional reactors.

Under the agreement, HD Hyundai Heavy will develop manufacturing technologies for key components of the Natrium reactor alongside TerraPower’s SMR technology.

The Natrium reactor will be deployed on land to generate electricity.

The latest agreement builds on a 2024 deal in which HD Hyundai Heavy Industries was selected by TerraPower to manufacture the reactor vessel for the first Natrium plant in the US state of Wyoming.

With the latest deal, the two partners will expand their partnership beyond the initial project to scale up the manufacturing capacity of next-generation SMRs to enable their broader commercial deployment.

MOLTEN CHLORIDE FAST REACTOR

TerraPower is developing another type of SMR known as the molten chloride fast reactor (MCFR), which can be used for marine applications.

HD Hyundai Heavy Industries is also working to develop a MCFR-powered ship model by 2030, marking a strategic shift toward using SMR technology as a sustainable alternative to traditional fuel, such as heavy fuel oil and liquefied natural gas (LNG).

On Monday, HD Korea Shipbuilding & Offshore Engineering Co. (HD KSOE), an intermediary shipbuilding holding company of HD Hyundai Co., vowed to invest up to 300 billion won ($206 million) to develop SMR-propelled ships by 2030.

With MCFRs, TerraPower and HD Hyundai Heavy Industries agreed last February to advance into the nuclear power plant ship market.

“The Natrium technology provides crucial baseload power plus gigawatt-scale energy storage; these plants will provide reliable and flexible power to address growing energy demand,” TerraPower Chief Executive Chris Levesque said in a statement.

“HD Hyundai Heavy Industries manufacturing capabilities are world-renowned, and I look forward to working with them to establish the commercial-scale production capacity that will be essential for successful deployment of multiple Natrium units globally," he added. 

The signing ceremony, held on Tuesday, was attended by Bill Gates and HD Hyundai Co. Executive Vice Chairman Chung Kisun.

Write to Hyung-Kyu Kim at khk@hankyung.com

Sookyung Seo edited this article.