Korea Hydro & Nuclear Power (KHNP) has entered into a memorandum of understanding (MoU) with Daegu Metropolitan City to construct a small modular reactor (SMR) power plant within a high-tech industrial complex near Daegu-Gyeongbuk New Airport.
Details of the MoU
The MoU, signed on June 17th at Daegu City Hall by Daegu Mayor Hong Joon-pyo and KHNP CEO Whang Joo-ho, includes a feasibility study encompassing site suitability, economic viability, and strategies to enhance public acceptance.
The objective is to construct and commercialize a 680 MWe SMR power plant, equivalent to the capacity of four 170 MW modules.
Timeline and Funding
Daegu City, situated in North Gyeongsang Province, has outlined its plans to conduct a preliminary feasibility study with KHNP and private construction companies by 2026. The goal is to obtain standard design approval from the government in 2028 and initiate commercial development in 2033.
For this purpose, a newly established SMR construction special purpose corporation (SPC) will acquire approximately 160,000 square meters of land within the Gunwi Advanced Industrial Complex and proceed with construction. The total project cost of KRW4 trillion (USD 2.9 billion) will be entirely financed by the SPC.
First SMR in South Korea
On May 31st, the Ministry of Trade, Industry and Energy (MOTIE) allocated 0.7 GWe for SMRs by 2035 through the 11th Basic Plan for Electricity Supply and Demand. This plan includes a specific scheme to introduce one unit consisting of four 170 MWe modules.
Daegu City noted that “this agreement is the first case since the introduction of the first SMR in the 11th basic power plan was announced in May, and this is the first time that a metropolitan government has directly started SMR construction.”
Development of SMR Industrial Ecosystem
The city has been engaged in discussions with MOTIE, the Korea Atomic Energy Research Institute, and the i-SMR Technology Development Agency for the past two years to establish the first SMR in South Korea at the Gunwi New Airport Advanced Industrial Complex.
Daegu Metropolitan City intends to build an “SMR industrial ecosystem” by attracting power-intensive industries such as AI semiconductors and data centers to the new airport’s high-tech industrial complex. It will also prepare various support measures, including supplying district heating, boosting local income, enhancing resident welfare, and subsidizing electricity rates.
i-SMR Design and Roadmap
The Korean-designed i-SMR is an integrated pressurized water reactor-type nuclear power plant with an electrical output of 170 MWe.
It is being developed according to a roadmap, aiming to finalize the standard design by the end of 2025 and secure standard design approval in 2028. According to KHNP, the i-SMR requires only one-third of the investment and can be constructed in half the time compared to larger reactors.
International Collaboration
KHNP has already signed a memorandum of understanding with Nusantara Power, a power generation subsidiary of Indonesian Electric Power Corporation, on mutual cooperation for introducing and constructing the i-SMR in Indonesia.
This MoU encompasses joint basic research on the economic feasibility and technology for i-SMR deployment in Indonesia, development of localized specialized technology through R&D cooperation, and collaboration through human/technology exchanges in the nuclear field through a working group.
Collaboration with Jordan
KHNP has also entered into an MoU with the Jordan Atomic Energy Commission for the deployment of the i-SMR in Jordan. The agreement outlines cooperation in comprehensive technology and information exchange on the i-SMR and a joint feasibility study.
Jordan is currently evaluating the introduction of SMRs after 2030 to address anticipated increases in electricity demand.