SK Innovation is participating in U.S.-based TerraPower's small modular reactor (SMR) demonstration and commercialization projects to build capabilities and target domestic and international markets. The company aims to secure a leading position in the global market by establishing a "K-Natrium" ecosystem that combines experience gained in the United States with South Korea's nuclear power supply chain.
Yoo Hyang-geun, team leader of SK Innovation's Energy Solutions Business Division, stated at the 'SMR Special Session' of 'Smart Energy Plus (SEP) 2026,' held on the 28th in Hall B of COEX in Seoul Samsung-dong, that "the key to the SMR market is who succeeds in demonstration first and how many commercialization projects they secure based on that success."
He added, "We plan to gain experience by participating in early-stage commercialization projects in the United States before expanding our business into domestic and global markets."
Previously, SK Group entered the next-generation nuclear power market by investing in TerraPower, a U.S. SMR company founded by Bill Gates, in 2022. This move was driven by the judgment that the importance of power sources capable of supplying stable, carbon-free electricity around the clock will grow with the spread of electrification.
The recent expansion of artificial intelligence (AI) data centers is cited as a new driver to grow the SMR market. Team leader Yoo said, "When we invested in 2022, we did not specifically consider AI data centers as large-scale power demand sources." He projected, "As power demand for AI infrastructure increases recently, we expect the SMR commercialization pipeline to expand rapidly."
Accordingly, SK plans to proactively secure SMR demonstration and commercialization capabilities through cooperation with TerraPower. TerraPower is currently conducting a demonstration project for its next-generation reactor, 'Natrium,' in Wyoming, U.S. SK's strategy is to participate in early-stage commercialization projects following the U.S. demonstration to accumulate experience, then build the capability to lead overall business operations domestically as a stepping stone for entering global markets.
SK is advancing SMR projects by dividing roles with TerraPower and Korea Hydro & Nuclear Power (KHNP). TerraPower handles reactor technology and design/engineering, while KHNP applies its nuclear power construction and operation experience. SK plans to participate in areas such as energy storage facilities and power generation for Natrium reactors by leveraging its experience in operating oil refining and liquefied natural gas (LNG) plants.
SK will also build a "K-Natrium" supply chain with the domestic nuclear power industry. This approach combines TerraPower's Natrium technology with South Korean companies' capabilities in materials, components, construction, and operations to enhance cost competitiveness and jointly enter overseas markets. Team leader Yoo explained, "We will incorporate as much Korean content as possible into the Natrium technology to reduce costs and apply the capabilities of the domestic industry accumulated in large-scale nuclear power plants." He added, "Our goal is to export technology and expand the industry together with various domestic companies."
In the long term, SK plans to use its domestic SMR business as a base for global expansion. The company aims to lead overall business operations in line with the timing of domestic SMR adoption after 2035, based on experience accumulated in the United States. It is also preparing to submit Natrium technology for pre-licensing review domestically.
Team leader Yoo said, "We need to secure experience leading entire projects in South Korea and consolidate related capabilities." He stated, "Based on this, our goal is to expand our business to global projects, including those in the United States."
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