[Photo by Doosan Heavy Industries & Construction Co.]

Doosan Heavy Industries & Construction Co. clinched a $1.2 billion deal to provide critical parts and equipment for a small modular reactor (SMR) project in the United States.

South Korea’s leading equipment maker said Wednesday it signed a deal with the Oregon, U.S.-based NuScale Power to supply components necessary to build a nuclear steam supply system and other SMR assemblies.

Its shares gained 0.95 percent to finish Wednesday at 6,350 won ($5.39).

SMRs are more flexible and affordable options to conventional nuclear reactors as they can be brought to the site for assembly and installed with little difficulty.

With the backing of the U.S. Department of Energy, NuScale Power teamed up with Utah Associated Municipal Power Systems to commercialize what would be America’s first SMR by 2026. The project would be based in Idaho and consist of 12 SMRs capable of producing 720 megawatts of power. The number of modules attached can be adjusted on demand, allowing for increased flexibility and security, Doosan Heavy explained.

The terms of the deal were not disclosed but Doosan Heavy is expected to supply parts worth at least $1.2 billion from the current deal and future projects in the U.S., according to industry observers.

Doosan Heavy also agreed to buy a stake in NuScale Power with Korean investors including IBK Securities Co. to strengthen its strategic alliance with the SMR maker. Doosan Heavy plans to invest a total of $40 million in the U.S. company by the year-end.

The cooperation began with a memorandum of understanding in April. NuScale Power said it expects its SMR designs to be approved by the U.S. Nuclear Regulatory Commission by September 2020.

Doosan Heavy has so far supplied 32 nuclear reactors and 114 steam generators across Korea, China and the United Arab Emirates. It also provided core equipment for units 3 and 4 of the Vogtle nuclear power plant under construction in the U.S., which would be the largest nuclear power station in the country once completed.

By Kang Gye-man and Kim Hyo-jin

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