SK Inc. and SK Innovation sign an MOU with TerraPower

SK Inc. signed an agreement with TerraPower, a U.S. start-up co-founded by Bill Gates, to jointly conduct the projects based on small modular reactors (SMRs), a new breed of nuclear power reactor.

The heads of SK Inc. and TerraPower pose after signing an agreement at the heqduarters of SK Inc. in central Seoul on Tuesday. From left: SK Inc. VIce Chairman Jang Dong-hyun, SK Innovation CEO Kim Jun and TerraPower President and CEO Chris Levesque. [SK INC.]

SK Inc. signed an agreement with TerraPower, a U.S. start-up co-founded by Bill Gates, to jointly conduct the projects based on small modular reactors (SMRs), a new breed of nuclear power reactor.

Under the memorandum of understanding (MoU) announced on Tuesday, SK Inc., SK Innovation and TerraPower will work towards the development, construction and marketing of SMRs and potentially the development of a chemical element with the promise of selectively targeting and destroying cancerous tissue.

“Given that the MoU stipulates ‘a comprehensive cooperation,’ all possibilities remain open,” a spokesperson at SK Inc. said.

“Since the TerraPower specializes in the design of SMRs, the discussion will be centered around the segment. But it could extend to bio, since TerraPower also produces and supplies Actinium-225,” he said.

Actinium-225 is a medical radioisotope that could be harvested from nuclear power generation.

The move follows the reports last month that SK Inc. may by 10 percent of the Bellevue, Washington-based start-up.

As for the investment, the spokesperson said that “it is one possible option,” although nothing has been decided.

SMRs are generally reactors that can produce 300 megawatts of power or less, compared to the average of about 1 gigawatt for conventional reactors. Manufactured as units, SMRs are believed to have greater scalability and siting flexibility.

With the inauguration of Yoon Suk-yeol, Korea has switched from a phase-out of nuclear power towards the widening adoption of the energy source.

Nuclear energy has emerged as an attractive alternative to carbon dioxide-producing fossil fuels as it doesn't directly produce greenhouse gases and has higher energy efficiency than renewables like solar and wind power.

The switch prompted energy companies and builders to jump onto the nuclear power bandwagon.

GS Energy, Doosan Enerbility and Samsung C&T have signed a memorandum of understanding (MOU) with NuScale Power, a U.S. start-up with expertise on SMR technology, for the construction and operation of SMRs.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]