SK Innovation to Join U.S. Kemmerer Nuclear Project, Expand SMR Cooperation with TerraPower

[Financial News] SK Innovation is expanding its role from a strategic investor in U.S. TerraPower to a company directly involved in the development of small modular reactor (SMR) projects. By taking part in U.S. demonstration and commercial projects, the company aims to gain project experience while building a business model for the Korean sodium SMR, known as 'K-Sodium,' to target surging power demand from artificial intelligence (AI) data centers and the global SMR market.
SK Innovation said on the 14th that CEO Choo Hyung-wook and TerraPower CEO Chris Levesque signed a term sheet in Seoul to cooperate on TerraPower's next-generation non-light-water SMR, Natrium.
SK Innovation and SK previously co-invested a total of $250 million in TerraPower in 2022, becoming its second-largest shareholders. With this agreement, the two companies will move beyond a simple strategic investment relationship and broaden cooperation to include actual SMR project development and execution.
The term sheet includes plans to expand participation in U.S. SMR demonstration reactors and follow-up commercial projects, use Korea's domestic SMR supply chain, develop a domestic Natrium SMR business, and jointly identify global SMR projects.
In particular, the two companies will review the feasibility of building 'K-Sodium,' a Korean-style Natrium SMR business model. After examining global market regulations as well as industrial and power grid conditions, they plan to gradually define how it can be applied and commercialized in Korea.
They will also push to use Korea's domestic nuclear supply chain. By expanding participation from domestic research and design institutions and nuclear and power equipment companies, they will seek ways to use the local supply chain for key Natrium SMR components and establish a Korean-style design and project execution system.
SK Innovation will also expand its participation in TerraPower's 'Kemmerer Unit 1' project in Wyoming and in follow-up commercial projects.
Kemmerer Unit 1 received approval from the NRC in March to begin construction of the first commercial advanced reactor in the United States. SK Innovation plans to build experience in the design, construction and operation of next-generation nuclear plants through its participation in U.S. demonstration projects, and then apply that experience to domestic business and global project development.
The company is also seeking to use the United States as a base for expansion into Asia. It is reviewing ways to expand SMR project development and operations in Korea, the United States, Vietnam, Indonesia and Malaysia. It also plans to jointly identify new SMR projects in the United States that can be linked to policy and financial support from both Korea and the U.S.
SK Innovation's push to expand its SMR business comes as power demand is rising rapidly, especially around AI data centers.
Natrium is a fourth-generation sodium-cooled fast reactor (SFR)-based SMR developed by TerraPower. By combining the reactor with a thermal energy storage system based on molten salt, it can store heat generated by the reactor and use it when power demand is high. The company says this allows for both stable baseload power and flexible output control, making it suitable for large power users such as AI data centers, semiconductor plants and industrial complexes.
SK Innovation plans to expand this into an integrated energy business that links its existing liquefied natural gas (LNG), power and Energy Storage System (ESS) operations. In the short term, it will use LNG power generation and ESS to meet the initial electricity demand of data centers and industrial complexes. In the medium to long term, it aims to supply SMR as a carbon-free baseload power source.
This also aligns with SK Group's 'AI Full Stack' strategy. By connecting SK hynix's AI semiconductors, SKT's data center and AI infrastructure, SK Innovation's LNG, power and SMR businesses, and SK On's ESS batteries, the group can provide the key infrastructure needed for AI data centers.
At the dinner held after the signing ceremony, SK Group Chairman Chey Tae-won and Bill Gates, chairman of TerraPower's board, also attended. They discussed how to respond to rising power demand from the spread of AI data centers, the future direction of the next-generation nuclear industry, and the potential for nuclear cooperation between Korea and the United States.
Choo Hyung-wook, CEO of SK Innovation, said, "We will work closely with TerraPower to refine the direction of the K-Sodium business model, and through future participation in U.S. projects, we will secure business development and operating capabilities to expand our global market presence."

[email protected] Lee Dong-hyeok Reporter