SK Innovation has sold part of its equity stake in TerraPower, a U.S.-based next-generation small modular reactor (SMR) developer, to Korea Hydro & Nuclear Power (KHNP), as the three companies move to strengthen strategic cooperation in the global SMR market.
SK Innovation said on January 21 that it has completed the transfer of a portion of its TerraPower shares to KHNP. The transaction marks the first time a Korean state-owned energy company has directly invested in a leading global SMR developer.
Founded in 2008 by Bill Gates, TerraPower is developing the Natrium® reactor, a next-generation sodium-cooled SMR integrated with a gigawatt-scale energy storage system. The company is currently building the world’s first commercial Natrium SMR plant in Wyoming, with completion targeted for 2030.
SK Innovation explained that SMRs, based on modular designs, can significantly reduce construction time and costs while allowing flexible, step-by-step capacity expansion to respond to rising electricity demand. The technology is viewed as particularly suitable for power-intensive facilities such as AI data centers, as it can provide stable, round-the-clock electricity supply.
The Natrium® SMR is designed to adjust output through load-following operation using energy storage systems, enabling flexible power generation aligned with demand. This capability also enhances compatibility with renewable energy sources, whose output can fluctuate, giving the technology a competitive edge over conventional SMR designs.
KHNP secured approval from the U.S. Committee on Foreign Investment in the United States (CFIUS) in December last year for its investment in TerraPower, establishing a regulatory foundation for participation in global SMR projects. SK Innovation and SK Inc. initially invested in TerraPower in August 2022, becoming its second-largest shareholders, a position they will maintain even after the partial stake sale.
The three companies began formal cooperation in April 2023 by signing a memorandum of understanding on SMR development and demonstration. Following KHNP’s investment, they plan to sequentially conclude full-scale commercial agreements covering additional SMR construction projects in the United States and overseas, as well as potential SMR deployment in Korea.
SK Innovation said it aims to combine its global competitiveness in energy and materials with KHNP’s extensive experience in nuclear plant construction and operation to build an SMR ecosystem for domestic and international industrial sites, including data centers, and to provide integrated energy solutions tailored to the growing power demands of the AI era.
Kim Moo-hwan, head of SK Innovation’s Energy Solution Business Unit, said KHNP’s participation in TerraPower has made global SMR cooperation more tangible, adding that the company will focus on supporting the Wyoming project, expanding overseas SMR businesses, and advancing localization of materials and components to deliver meaningful innovation outcomes.
