SK Innovation and TerraPower Expand Next-Generation Nuclear Collaboration to Target AI Data Centers

Expanding Participation in U.S. Projects
Advancing the "K-Natrium" Model

SK Innovation and TerraPower are expanding their collaboration on next-generation small modular reactor (SMR) projects, specifically focusing on the 'Natrium' technology. The two companies plan to increase participation in demonstration and commercial projects in the United States, while simultaneously developing a concrete 'K-Natrium' business model that leverages Korea's domestic supply chain. Their strategy targets the surging electricity demand from AI data centers and aims to enter the global market.

(Front right) Hyoungwook Choo, CEO of SK Innovation, and Chris Leveck, CEO of TerraPower, signed a key agreement for SMR business cooperation on the 14th at Sunhyewon in Jongno-gu, Seoul, and (back right) they are taking a commemorative photo with Taewon Choi, Chairman of SK Group, Jungkwan Kim, Minister of Trade, Industry and Energy, and Bill Gates, Chair of the Board at TerraPower. SK Innovation

SK Innovation announced on the 14th that Hyungwook Choo, CEO of SK Innovation, and Chris Levesque, CEO of TerraPower, met in Seoul to sign a key terms agreement to cooperate on Natrium SMR business and jointly explore the global market. SK Innovation and SK Inc. became the second-largest shareholders in TerraPower in 2022 after jointly investing a total of USD 250 million.

Under this agreement, the two companies will promote the expanded participation of SK Innovation in both TerraPower’s ongoing SMR demonstration project in the United States and subsequent commercial projects. They will also cooperate on developing SMR projects using the domestic Korean supply chain, advancing the Natrium SMR business, and jointly seeking out global project opportunities.

The companies plan to gradually specify the direction of the 'K-Natrium' business model for Korea by reviewing the regulatory landscape, industrial environment, and power system conditions in each country. They will seek ways to expand the involvement of domestic research and design institutions and nuclear power equipment suppliers to build a core supply chain and establish a Korean-style design and project execution system.

The dinner event following the signing was attended by Taewon Choi, Chairman of SK Group, and Bill Gates, Chairman of the Board at TerraPower. Attendees discussed strategies for addressing electricity demand resulting from the proliferation of AI data centers, the development direction for next-generation nuclear power, and possibilities for Korea-US nuclear cooperation.

The Natrium SMR is an SMR based on TerraPower’s fourth-generation sodium-cooled fast reactor (SFR) design. It combines the reactor with a molten salt-based thermal energy storage (TES) system, enabling the storage of generated heat for later use during periods of high power demand. The company states that the system can provide stable baseload power and flexible output control, making it suitable for large-scale electricity consumers such as AI data centers, semiconductor plants, and industrial complexes.

TerraPower advanced SMR construction site located in Kemmerer, Wyoming, USA, with SK as a shareholder. Photo by Yonhap News.

SK Innovation plans to expand its participation in TerraPower’s 'Kemmerer Unit 1' project in Wyoming, USA, as well as subsequent commercial initiatives. In March, Kemmerer Unit 1 received the first-ever construction permit for a commercial advanced reactor from the US Nuclear Regulatory Commission (NRC), launching the project in full scale.

Through involvement in US-based projects, SK Innovation aims to gain firsthand experience in the design, construction, and operation of next-generation nuclear power plants, with plans to leverage this capability in assessing domestic applicability and developing global business. The company is also considering expansion into SMR development and operational projects in Asia, including Vietnam, Indonesia, and Malaysia.

The companies will jointly seek out additional US-based SMR projects eligible for support by Korean and American governments or financial institutions. They will review the business feasibility, financing, supply chain structure, and construction and operation plans for each project, while exploring cooperation opportunities with the US government and related agencies.

With this agreement, SK Innovation will broaden its role from a strategic investor in TerraPower to an active participant in SMR business development and project execution. The company plans to link this with its existing LNG and electricity businesses, as well as SK On's energy storage system (ESS) operations, to develop integrated energy solutions for large-scale power consumers.

In the short term, SK Innovation will use LNG power generation and ESS to address the initial electricity needs of AI data centers and industrial complexes, while in the medium- to long-term, it plans to provide SMRs as stable, carbon-free baseload generation.

This approach aligns with Chairman Taewon Choi's 'AI Full Stack' strategy: by connecting SK hynix's AI semiconductors, SK Telecom's data centers and AI infrastructure, SK Innovation’s LNG, electricity, and SMR businesses, and SK On's ESS batteries, the group intends to build a comprehensive value chain that encompasses everything from semiconductors to infrastructure, electricity, and storage systems for AI data centers.

Hyungwook Choo, CEO of SK Innovation, said, "This agreement is significant in that SK Innovation and TerraPower will collaborate to address AI data centers’ electricity demand by examining the domestic adoption potential of the Natrium SMR and expanding global business. We will concretize the K-Natrium business model, build capabilities for business development and operations through upcoming US projects, and accelerate our entry into global markets."

This content was produced with the assistance of AI translation services.