Samsung C&T (028260.KS) is accelerating its push into the global small modular reactor market, expanding cooperation that had centered on Europe into next-generation nuclear technology in the United States.
The company's engineering and construction division said on Sept. 22 that its building arm will sign a strategic agreement with Kairos Power, a leading U.S. small modular reactor developer, on Sept. 23 to demonstrate and commercialize next-generation SMRs, and will pursue an investment of $70 million, or about 95 billion won. The signing ceremony will be held in New York in connection with a JP Morgan-hosted event during Climate Week NYC, the world's largest climate gathering, which runs Sept. 20-27.
Kairos Power is a prominent U.S. developer of next-generation reactors with proprietary molten-salt cooling technology. Conventional light-water SMRs use water as a coolant and must operate at high pressure, while non-light-water coolants such as molten salt allow high-temperature operation at low pressure. Analysts say the approach is competitive because it reduces the burden of high-pressure equipment, improving safety and efficiency, while the high-temperature heat can also serve a range of energy needs. The company is building its Hermes demonstration reactor in Oak Ridge, Tennessee, and is moving quickly toward commercialization, becoming the first non-light-water reactor to win approval from the U.S. Nuclear Regulatory Commission in about 50 years.
Under the partnership, Samsung C&T will take part in reviewing the design and constructability of the Hermes demonstration reactor and has secured priority rights to carry out engineering, procurement and construction work on commercial reactors that Kairos Power plans to build in the United States. The company will also make the roughly $70 million investment to cement a long-term partnership with Kairos Power. The two companies plan to identify business opportunities in global nuclear markets including South Korea, Southeast Asia and Europe to broaden their cooperation.
"We are very pleased to establish a partnership with Samsung C&T," Kairos Power Chief Executive Mike Laufer said, adding that combining the company's innovative reactor technology and its commercialization and supply model with Samsung C&T's world-class project execution capabilities is expected to further accelerate the commercialization of next-generation reactors. Lee Chang-wook, executive vice president and head of Samsung C&T's energy solutions division, said the agreement will be an important milestone in leading the next-generation nuclear market. "Through close cooperation with Kairos Power, we plan not only to successfully carry out the SMR demonstration project but also to create various business opportunities in the global commercialization market," he said.
Samsung C&T plans to use the partnership as a springboard to expand beyond simple EPC construction of SMRs into investment, development and operations.
