U.S. TerraPower, South Korea's SK Innovation sign preliminary deal on global SMR projects

SEOUL, Aug 14 (Reuters) - TerraPower and South Korea's SK Innovation signed on Friday a preliminary global agreement on small ‌modular reactors (SMRs), Seoul's Industry Ministry said, opening a path ‌for the SK Group affiliate to participate in the U.S. company's projects at ​home and abroad.

The agreement was signed at a meeting in Seoul between TerraPower co-founder Bill Gates, SK Group Chairman Chey Tae-won and Industry Minister Kim Jung-kwan, the ministry said.

The deal gives SK Innovation, ‌the parent of South ⁠Korea's largest oil refiner, an opportunity to take part in development of TerraPower's SMR projects in the ⁠United States and overseas, the ministry said. It did not disclose financial terms or the scope of any investment.

TerraPower, backed by Gates, is ​developing ​its sodium-cooled Natrium reactor project in ​Kemmerer, Wyoming. The company ‌received a construction permit from the U.S. Nuclear Regulatory Commission in March and is targeting commercial operation in 2031, the ministry said.

South Korea's Doosan Enerbility said on Friday it won a contract from TerraPower to manufacture key components for the reactor, including the ‌reactor vessel, support structures and internal structures, ​without disclosing the value of the ​deal.

South Korean companies including ​SK and HD Hyundai have made financial investments ‌in TerraPower and are also seeking ​roles in equipment ​supply, operations and construction for its U.S. and overseas projects, the ministry said.

The ministry said growing electricity demand from AI ​infrastructure and data ‌centres was increasing global interest in SMRs, creating opportunties ​for Korean suppliers to enter emerging overseas supply chains.