KSOE signs $30 mn investment deal with TerraPower for SMR collabo

South Korea’s largest shipbuilder Korea Shipbuilding & Offshore Engineering Co. (KSOE) has joined forces with U.S. TerraPower invested by Microsoft founder Bill Gates as part of its efforts to expand investment in next-gen energy technology under Hyundai Heavy Industries Group’s hydrogen roadmap.

KSOE recently signed a $30 million worth investment contract with TerraPower, it said Friday.

The American nuclear reactor designer and developer, founded by Gates in 2008, owns a proprietary technology to design a sodium-cooled fast reactor, a kind of next-gen small modular reactors (SMR).

Its design helps cut greenhouse gas emissions in the power generation process and reduces the risk of leakage and explosion accidents, gaining ground for eco-friendly future energy source.

KSOE has discussed partnership with TerraPower since the beginning of the year. With the latest contract, it aims to expand investment in next-gen energy technologies. Hyundai Heavy Industries Group last year announced its Hydrogen Dream 2030 roadmap for development and use of new energy sources.

The Korean shipyard is planning to explore new business opportunities using the group’s technical prowess in nuclear energy and secure innovative technologies in offshore nuclear power plant and nuclear marine propulsion.

KSOE earlier participated in the development of key facilities for the Korea Superconducting Tokamak Advanced Research (KSTAR) and the International Thermonuclear Experimental Reactor (ITER).

“The SMR market is growing fast with greater growth potential amid global decarbonization initiative. The company will make efforts to take the lead in the next-gen energy market,” said an official from KSOE.

KSOE shares were trading 1.47 percent higher at 75,800 won ($53.22) in Seoul trading by midday Friday. Hyundai Heavy Industries Group’s holding entity HD Hyundai shares gained 0.81 percent to 61,900 won.

By Pulse