As global efforts to achieve carbon neutrality and strengthen energy security accelerate, nuclear power is drawing increasing attention as a carbon-free energy source. At the same time, heightened concerns over the safety and public acceptance of large-scale reactors are driving a market shift toward Small Modular Reactors (SMRs).
According to SMR market report by global research firm MarketsandMarkets, the global SMR market is projected to grow from USD 5.7 billion in 2022 to USD 6.8 billion by 2030, with an average annual growth rate of 2.3%.
HD Hyundai is fast-tracking its investment in SMR technology development, positioning the company at the forefront of next-generation clean energy innovation.
■Land-based SMRs gain traction amid rising energy demand – HD Hyundai leads commercialization
In November 2022, HD Korea Shipbuilding & Offshore Engineering (HD KSOE) invested USD 30 million in TerraPower, a leading U.S. SMR company founded by Microsoft co-founder Bill Gates. The investment marked the company’s full-fledged foray into the next-generation energy technology.
Founded in 2008, TerraPower is an innovative company that has developed the Natrium™ reactor, a next-generation sodium-cooled fast reactor (SFR) design. As global energy demand continues to surge, TerraPower is moving swiftly to deploy Natrium reactors across the United States and beyond.
In December 2024, HD Hyundai secured a project from TerraPower to manufacture cylindrical reactor vessels for the Natrium project in Kemmerer, Wyoming a 345 MW 4th-generation SFR. Recognized as one of the most advanced SMR types, SFR technology offers enhanced safety, a high level of technological maturity, and generates only about one-twentieth of the nuclear waste compared to conventional reactors.
HD Hyundai Chairman Chung Kisun met with TerraPower Chairman and Founder Bill Gates to discuss nuclear supply chain cooperation on August 22, 2025.
Building on its extensive manufacturing experience and advanced technological capabilities, HD Hyundai is expected to play a key role in establishing the foundation for the commercial deployment of Natrium reactors. The company has previously contributed to major fusion energy projects such as Korea’s KSTAR and the International Thermonuclear Experimental Reactor (ITER), strengthening its expertise in next-generation energy technologies.
This March, HD Hyundai signed a strategic agreement with TerraPower to expand the manufacturing supply chain for the commercialization of the Natrium reactor. Through this partnership, HD Hyundai will develop optimized manufacturing solutions for key reactor components and establish the commercial-scale production capacity beyond the demonstration phase.
The Natrium project aims for completion by 2030 following the issuance of construction and operating licenses from the U.S. Nuclear Regulatory Commission (NRC).
■Leading research on offshore SMR power generation with enhanced safety and efficiency
HD Hyundai is spearheading the development of the Floating Nuclear Power Barge, an offshore power generation platform designed to produce electricity using SMR technology. In October 2023, the company obtained its first concept design approval for the floating nuclear power barge, followed by a second approval in May 2025 for the conceptual design and modularization of the power conversion system that converts thermal energy into electric power.
The floating nuclear power barge offers significant advantages in terms of cost efficiency and public acceptance. While constructing SMR facilities on land requires substantial investment, leveraging shipbuilding expertise to deploy SMR units at sea can dramatically reduce costs. Offshore installations also provide the flexibility to locate SMR facilities in areas with fewer safety and regulatory constraints compared to land-based sites.
Since March of last year, HD Hyundai has dispatched a research and development team to TerraPower in the United States to collaborate on a range of initiatives, including the development of nuclear-powered vessels and other advanced applications of nuclear technology.
HD Hyundai is also advancing the development of the Molten Salt Reactor (MSR), widely regarded as one of the most suitable reactor types for offshore nuclear power generation. MSR is a type of Small Modular Reactor (SMR) that uses molten salt at high temperatures as both a coolant and a fuel medium. In February 2024, HD Hyundai organized a technology exchange meeting in Washington State, U.S., to jointly develop MSR with TerraPower, Southern Company from the U.S. and Core Power from the U.K.
To further accelerate offshore nuclear commercialization, HD Hyundai has played a leading role in co-founding the world’s first international private organization in the field of offshore nuclear power, the Nuclear Energy Marine Organization (NEMO). A total of 11 leading companies from seven countries participated, including HD Hyundai; TerraPower; Westinghouse Electric Company, a global leader in nuclear power plant technology; Lloyd’s Register; and Seaborg of Denmark, an innovative company in the field of molten salt reactors.
Headquartered in London, NEMO will work alongside the International Maritime Organization (IMO) and the International Atomic Energy Agency (IAEA) to develop global standards and regulations governing the deployment, operation, and decommissioning of nuclear power in maritime environments, paving the way for the commercialization of offshore nuclear energy.
■SMR-powered vessels: a game changer in the era of carbon neutrality
HD Hyundai is developing its first nuclear-powered vessel — a new type of ship that has yet to be built in Korea. Nuclear propulsion is emerging as a potential game changer in the shipbuilding industry, offering a breakthrough technology for achieving carbon neutrality. “The global market for SMR-powered ships is a blue ocean, free from competition with China,” said Park Sangmin, Head of HD KSOE's Green Energy Research Lab
This February, HD Hyundai unveiled its first concept model of a nuclear-powered container ship design model applying SMR technology at an event held in Houston, U.S. The company is currently developing a 15,000 TEU-class container vessel powered by an MSR engine system. Development is approximately 50 percent complete, with the goal of full-scale completion by 2030.
Rendering of a 15,000 TEU-class container ship powered by SMR, unveiled by HD Korea Shipbuilding & Offshore Engineering
Unlike conventional ships, nuclear-powered vessels do not require components such as exhaust systems or large fuel tanks, allowing the additional space to be used for more container storage — significantly improving operational efficiency. The design also incorporates actual equipment configurations and advanced safety systems to enhance reliability.
Earlier, HD Hyundai received Approval in Principle (AIP) from the American Bureau of Shipping (ABS) for a 15,000 TEU-class container ship design model applying SMR technology.