KHNP to cooperate with Scandinavian SMR project developers

Thursday, 23 January 2025

On 20 January, in Oslo, Korea Hydro & Nuclear Power (KHNP) signed a memorandum of understanding with Norsk Kjernekraft. The following day, it also signed an MoU with Kärnfull Next in Stockholm.

Through these agreements, KHNP and the two companies agreed to actively cooperate in sharing information for the introduction of i-SMR, conducting preliminary feasibility studies on candidate sites, and developing SMR Smart Net-zero City (SSNC) models.

KHNP said the agreements reflect changes in the global market. Recently, it said, the SMR market has been attracting attention for its new business structure led by energy consumers and developers, moving away from the existing business model centred on nuclear power plant operators.

Local governments in Norway and Sweden are also accelerating the movement to introduce SMRs to boost the local economy and achieve energy independence, Norsk Kjernekraft noted. In line with this trend, KHNP plans to actively discuss ways to promote i-SMR projects that are tailored to regional characteristics by expanding cooperation with local companies.

Norsk Kjernekraft aims to build, own and operate SMR power plants in Norway in collaboration with power-intensive industry. It says it will prepare licence applications in accordance with national regulations and international standards. It will follow the International Atomic Energy Agency's milestones approach, and focus on what creates value in the early phase. Financing will take place in collaboration with capital-strong industry and solid financial players.

"Yet another important milestone was reached today," said Norsk Kjernekraft CEO Jonny Hesthammer. "In our endeavour to expand Norway's supply of reliable, affordable and clean power, we'll be cooperating with KHNP, one of the world's most renowned nuclear power companies. Our approach is similar to what Norway did when we began our journey to become one of the world's leading oil and gas nations."

_{The signing of the MoU with Kärnfull Next (Image: KHNP)}

Swedish small modular reactor project development company Kärnfull Next - a fully-owned subsidiary of Kärnfull Future AB - aims to have the first commercial SMR operational at a new nuclear site in Sweden by the early 2030s. Kärnfull Next has been conducting site selection and feasibility studies in several municipalities in Sweden since 2022. By establishing multiple SMR parks as part of the same programme, the company expects to achieve economies of scale in terms of technology selection, construction partners, power purchase agreements and financing partners.

"These agreements are expected to be an important opportunity for KHNP to strengthen its position in the European SMR market and contribute to the global carbon neutrality goal," KHNP said. "Based on the technological excellence of i-SMR and its experience in constructing and operating nuclear power plants at home and abroad, KHNP plans to solidify its position in the European market and play a leading role in the global energy transition trend."

"This agreement will be an important opportunity for KHNP to enter the European SMR market," said the company's CEO, Hwang Joo-ho. "We will contribute to achieving global carbon neutrality and lead a sustainable energy future based on KHNP's technology and know-how."

The Korean-designed i-SMR is an integrated pressurised water reactor type nuclear power plant with an electrical output of 170 MW. It is being developed according to a development roadmap, with the goal of completing the standard design by the end of 2025 and obtaining standard design approval in 2028. According to KHNP, it requires just one-third of the investment, and can be constructed in half the time compared with large reactors.

KHNP has already signed an MoU with Nusantara Power - a power generation subsidiary of Indonesian Electric Power Corporation - on mutual cooperation for the introduction and construction of the i-SMR in Indonesia. Through this MoU, the two companies will cooperate in various fields, including: joint basic research on the economic feasibility and technology for deployment of the i-SMR in Indonesia; development of local specialised technology through R&D cooperation; and collaboration through human/technology exchanges in the nuclear field through the formation of a working group.

KHNP has also signed an MoU on mutual cooperation with the Jordan Atomic Energy Commission for the deployment of the i-SMR in Jordan. The two organisations agreed to cooperate in comprehensive technology and information exchange on the i-SMR and to jointly conduct a feasibility study. Jordan is currently considering the introduction of SMRs after 2030 in preparation of expected increased electricity demand.