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DL E&C begins full-fledged investment in the Small Modular Reactor (SMR) business
DATE 2023.01.18
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DL E&C Accelerates Investments in SMR Business
Bird's eye view of the Xe-100 power plant
DL E&C is accelerating entry into the small modular reactor (SMR) business, gaining attention as a decarbonization energy source. The company announced on the 18th that it has decided to invest strategically in US SMR developer X-Energy.
DL E&C will acquire the CB issued by X-Energy by investing USD 20 million (KRW 25 billion). Korean nuclear power main equipment manufacturer Doosan Enerbility will also participate in the strategic investment.
▣ X-Energy, a leading firm in the 4th-generation SMR field, targets commercialization by 2029
Recognized as a leading firm in the non-light reactor-type 4th-generation SMR field applying new coolant instead of water, X-Energy is leading the high-temperature gas-cooled reactor (HTGR) field. The representative model that X-Energy is developing, Xe-100, consists of four 80MWe modules, and the total power generation capacity is 320Mwe. The X-100 uses high-temperature helium gas as coolant and nuclear fuel in the size of a tennis ball with enhanced stability (not melting at 1,800℃ through triple coating). The high heat of 600℃ produced during the operations is used as a heat source of industrial plants. The model has a merit, i.e., various customers can be secured in addition to power supply.
X-Energy has succeeded in attracting the US government’s large-scale fund support (USD 1.2 billion) and continuous private investments thanks to SMR technology’s stability and economic feasibility. The company is developing the product with commercialization targeted for 2029. X-Energy’s post-listing enterprise value is estimated to be more than USD 2 billion (KRW 2.5 trillion).
▣ DL E&C promotes new eco-friendly business through synergy with plant business
DL E&C plans to cooperate on the SMR plant business development with X-Energy and expand opportunities and competitiveness in the energy business field. X-Energy has a strategy for entering the global market in linkage with DL E&C’s plant business, as X-Energy’s SMR technology has high availability in various industries as well as power production.
DL E&C will propel the new eco-friendly business portfolio through the SMR business. That is because the 600℃ or higher heat generated during the SMR operation can be used for the production of other eco-friendly energy sources, namely hydrogen and ammonia. DL E&C has experiences performing design up to construction of reformed and byproduct hydrogen production plants at home and abroad. The company successfully performed the Ma'aden Ammonia Project in Saudi Arabia, which produces ammonia through natural gas as the world’s largest. DL E&C is currently carrying out collaboration on hydrogen production and infrastructure construction projects with the government of Southern Australia and Korea’s Uljin-gun. DL E&C plans to expand its new business portfolio by constructing a hydrogen value chain through combination with the SMR business.
According to DL E&C Plant Biz Division Director Yu Jae-ho, X-Energy’s SMR technology can be used in diverse industries, so a synergy effect is expected with DL E&C’s plant business. “We will actively propel eco-friendly energy source development such as hydrogen and ammonia by combining our BIM and modular plant design technology with the SMR business,” he added.
X-Energy CEO Clay Sell expects to showcase their SMR technology in the global market through cooperation with DL E&C with its world-class technological capabilities and expertise/professionalism in the power generation plant field.
