Recently, executives from South Korean shipbuilding giant HD Hyundai and US nuclear reactor design and development engineering company TerraPower met in Seoul, South Korea, to discuss nuclear supply chain expansion and commercialization collaboration.
Supporting Commercial Applications with Nuclear Supply Chain Development
Bill Gates, in his capacity as Founder and Chairman of TerraPower, met with HD Hyundai Chief Vice Chairman Jeong Ki-sun. The two teams reviewed the progress of supply chain expansion and commercialization of sodium-cooled fast reactors (Natrium) and discussed future collaboration opportunities.
This executive meeting marked the first meeting between the two parties, five months after their initial meeting in the United States in March of this year. During that meeting, HD Hyundai and TerraPower signed a Memorandum of Understanding (MOU) to expand the global manufacturing supply chain for the commercialization of Natrium fast reactors.
TerraPower’s sodium-cooled fast reactor (SMR) is a fourth-generation small modular reactor (SMR), a sodium-cooled fast reactor (SFR) design with built-in energy storage. The Latest Tech News has learned that HD Hyundai, leveraging its technology and manufacturing capabilities in the field of small modular reactors, has signed a contract with TerraPower to supply reactor vessels for TerraPower’s first sodium-cooled fast reactor. Building on an existing memorandum of understanding, the two companies will explore expanding the SFR supply chain to support the technology’s global commercialization.
Jung Ki-soon said, “Next-generation SMR technology is a core solution for achieving a sustainable energy future. Our collaboration with TerraPower will be a turning point in building a global nuclear supply chain and driving a paradigm shift in energy.”
Chris Levesque, President and CEO of TerraPower, noted, “HD Hyundai is not only a globally recognized shipyard but also a key supply chain partner with deep manufacturing expertise. They will play a vital role in the global nuclear industry. Through this collaboration, we aim to accelerate the commercialization of SFRs and continue to create opportunities in the global market.”
Accelerating Nuclear-Powered Ship Development
At the same time, HD Hyundai is also increasing its nuclear-powered ship R&D efforts, including collaborating with TerraPower on molten salt reactor (MSR) technology and exploring its potential applications in shipbuilding.
Last November, HD KSOE, the holding subsidiary of HD Hyundai’s shipbuilding and marine engineering business, made an initial investment of US$30 million in TerraPower. The following year, the shipyard unveiled a design for a ship powered by a small modular reactor (SMRR).
Since February 2024, HD KSOE has been conducting joint research with TerraPower on next-generation SMRs. In December of the same year, HD KSOE received an order to manufacture the main equipment for TerraPower’s sodium-cooled fast reactor.
Earlier this year, HD KSOE unveiled a prototype of a nuclear-powered container ship using SMR technology to accelerate its nuclear-powered ship development. The prototype, based on a 15,000 TEU container ship design and incorporating SMR technology, has previously received approval-in-principle from the American Bureau of Shipping (ABS).
America’s Secret Weapon for Revitalizing Shipbuilding
Christopher J. Wiernicki, Chairman and CEO of ABS, recently emphasized that new nuclear reactor technology could present a “once-in-a-generation” opportunity for U.S. industrial policy.
He stated that as the United States seeks to improve the prospects for its domestic shipbuilding industry, ships powered by advanced small modular reactors could serve as a catalyst for revitalizing the industry.
He believes the key next step is developing a small modular reactor demonstration unit for marine applications. “This is a transformative core technology. It will change shipping’s business models, economics, ship operations, and design concepts.”
“New nuclear energy is highly competitive. Taking into account fuel differences, compliance costs, and residual values, its economics over the entire ship lifecycle are extremely attractive, with costs roughly comparable to fossil fuel options.” He further noted: “New nuclear energy could become the ‘secret weapon’ of the US shipbuilding industry, but we need investment in this technology and a ‘New Nuclear Energy Action Plan’ to achieve this.”
Last month, South Korea pledged $150 billion to a special US shipbuilding revitalization fund as part of a $350 billion bilateral trade agreement between the two countries, aiming to “inject new vitality” into the US shipbuilding industry.
