DL E&C is accelerating the expansion of its Small Modular Reactors (SMR) business and technology development as a new business for the future.
DL E&C announced on February 15 that it has signed a business agreement with X-energy, a U.S. SMR developer, and KEPCO KPS, a nuclear power plant operation and maintenance company, to develop global SMR business development, commissioning, and maintenance technologies.
Through this agreement, the three companies will develop a global SMR plant business using the Xe-100, which is being developed by X-energy as a representative SMR model. They also plan to jointly develop technologies for SMR plant operation and maintenance to preempt the related market.
DL E&C is fostering SMR, which is recognized as a next-generation eco-friendly energy source, as a future growth engine. In January last year, the company made a strategic investment of $20 million in X-energy to develop the business in earnest.
The high heat generated by SMRs during operation can be utilized to produce hydrogen and ammonia, another green energy source. DL E&C plans to expand its portfolio of new businesses by building an eco-friendly energy value chain in conjunction with the SMR business.
The MOU is expected to secure technological competitiveness in the entire SMR cycle, including SMR plant EPC (design, equipment procurement, and construction) as well as operation and maintenance. The companies will also utilize their respective networks and expertise to promote various businesses related to SMRs in the global market.
X-energy is a leader in the fourth-generation SMR field and is developing a high-temperature gas reactor (HTGR) that uses a new cooling material other than water. The representative model, Xe-100, uses high-temperature helium gas as a coolant, and the tennis ball-sized nuclear fuel is triple-coated and stable even at 1,800℃. The technology's stability and affordability have been recognized by the U.S. government, which has provided large-scale funding ($1.2 billion) and continues to attract private investment.
X-energy is accelerating the commercialization of its SMR technology. It is currently partnering with global chemical company Dow to build the first SMR in North America to provide carbon-free electricity and high-temperature process heat in an industrial zone.
The U.S. Nuclear Regulatory Commission (USNRC) is conducting a prelicensing review process, and we expect to apply for a construction license in 2024 and begin commercial operation in 2029. We have also completed the second of three phases of the Canadian Nuclear Safety Commission's (CNSC) Supplier Design Review. The Supplier Design Review is a pre-licensing process that verifies that a company's nuclear power plant design technology meets Canadian regulatory requirements and expectations.
Meanwhile, KEPCO KPS is a public company that specializes in the maintenance of nuclear power plants and is recognized in the domestic and global markets for its world-class technology and extensive global network in the field of nuclear power plant maintenance. KEPCO KPS expects to expand its business related to SMR plant operation and maintenance in the future through this MOU.
