‘Terrapower’ likely to purchase SK shares
Korea Hydro & Nuclear Power will invest $40 million (approximately KRW 53.6 billion) in TerraPower, a fourth-generation small modular reactor (SMR) developer in the United States. If the investment is finalized, it will be the first case of a domestic energy public corporation investing in an SMR developer.
According to the Ministry of Trade, Industry and Energy on the 5th, Hanwha Solutions recently held a board meeting and conditionally approved the ‘US 4th Generation Nuclear Power Plant SMR Development Company Equity Acquisition Plan’ containing these contents. An official from the Ministry of Trade, Industry and Energy explained, “Hanwha Solutions is in the process of acquiring TerraPower,” and “It is still in the final board of directors’ approval stage.”
TerraPower, the US company that Hanwha plans to invest in, was founded in 2006 by Microsoft founder Bill Gates. It is a leading developer of the sodium-cooled fast reactor (SFR), one of the next-generation SMR commercialization technologies, and is a company with a relatively fast commercialization plan among the 4th-generation SMR developers. SMR refers to a nuclear power plant of 300MW (megawatts) or less with a smaller power generation capacity and size than existing large nuclear power plants. It is easy to build and can be built on small sites. In particular, it has great advantages over existing nuclear power plants in terms of safety, economy, and flexibility.
Hanwha Solutions is expected to invest by purchasing shares in a special purpose company (SPC) established by SK Group to purchase TerraPower shares. SK Group invested $250 million in TerraPower in August 2022, and Hanwha Solutions is said to have discussed participation in the shares since then. It is also reported that the acquisition price is being negotiated at the same level as when SK Group made the investment.
If the contract is concluded in this form, Hanwha Solutions will secure approximately 16% of the shares of the SPC established by SK Group. The stock transfer contract is expected to be concluded as early as this month and the investment is expected to be executed by the end of the year.
Sejong = Reporter Jeong Soon-gu [email protected]
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2024-09-06 21:54:05