Bill Gates courts Korea Inc. for TerraPower's Wyoming nuclear project

Korean industrial powerhouses announced plans to strengthen their partnerships with TerraPower, a U.S.-based small modular reactor (SMR) developer founded by Bill Gates, who met with Korean Industry Minister Kim Jung-kwan in Seoul on Friday.

Gates met with SK Group Chairman Chey Tae-won, during which SK Innovation and TerraPower signed a term sheet for a global joint business agreement granting the Korean firm opportunities to participate in TerraPower’s SMR development both in the United States and abroad.

SMRs are compact, factory-made nuclear reactors that are cheaper and faster to build than traditional plants, safer due to passive cooling designs and flexible enough to power data centers or remote sites.

U.S. tech giants’ demand for SMRs has surged due to the build-out of AI infrastructure and data centers. TerraPower, founded by Gates in 2006, already has financial ties with Korean companies, including SK and HD Hyundai.

The U.S. firm is developing its Natrium SMR project in Kemmerer, Wyoming. The fourth-generation reactor uses sodium coolant rather than conventional water to transfer heat to its steam generator, with each module rated at 345 megawatts.

TerraPower secured a construction permit from the U.S. Nuclear Regulatory Commission in March and is targeting commercial operation by 2031.

SK Inc. and SK Innovation invested a combined $250 million in TerraPower’s $750 million funding round in 2022, making SK the company’s second-largest shareholder.

Korea Hydro & Nuclear Power acquired a portion of SK Innovation’s stake in January, but the latter retained its position as the second-largest shareholder.

Also on Friday, Doosan Enerbility signed a supply agreement with TerraPower for core SMR equipment, though the contract size has not been disclosed.

Under the deal, the Korean power equipment maker will manufacture the reactor containment vessel, reactor support structure and internal reactor components for TerraPower’s sodium reactor.

Gates also met HD Hyundai Chairman Chung Ki-sun on Friday, roughly seven months after their meeting in Davos, Switzerland. The two agreed to accelerate their cooperation beyond investment into reactor manufacturing.

HD Korea Shipbuilding & Offshore Engineering previously invested $30 million in TerraPower in 2022, and HD Hyundai Heavy Industries won a contract in 2024 to manufacture the reactor vessel for TerraPower’s sodium reactor in Wyoming.

In May last year, HD Hyundai Heavy Industries and TerraPower signed a framework agreement on sodium reactor supplies. The deal named the Korean firm as the preferred bidder for manufacturing the reactor enclosure system’s core components.

Gates also met with National Assembly Speaker Cho Jeong-sik and Prime Minister Han Seong-sook earlier on Friday morning to discuss the need to cooperate to address shared global challenges in AI, biotechnology and global health.

BY SARAH CHEA [chea.sarah@joongang.co.kr]