DL E&C (375500.KS), a South Korean construction firm, said Wednesday it has signed an approximately $10 million (about 15 billion won) standardized design contract for small modular reactors (SMRs) with X-energy, a leading U.S. SMR developer. This marks the first time a Korean construction company has directly undertaken SMR standardized design work.
SMR standardized design involves specifying the interconnection and operational methods of each facility within a power plant. DL E&C plans to complete the design by the first half of next year.
Unlike conventional light-water reactors, X-energy possesses fourth-generation SMR technology that uses helium gas as a coolant. The company is currently pursuing SMR construction in Texas and Washington state, with the generated electricity planned for supply to Amazon Web Services (AWS).
The core of standardization is "modularization," which reduces the number of components and processes to improve construction efficiency and quality stability. DL E&C is pursuing rapid standardization and modularization based on its track record of constructing power plants with a combined capacity of 51.5 GW across 19 countries.
Following a $20 million (about 30 billion won) investment in X-energy in 2023, the latest design contract has further strengthened the strategic partnership between the two companies. DL E&C is also building group-level energy value chain synergies, with affiliate DL Energy handling SMR project development, investment and operations while DL E&C takes charge of engineering, procurement and construction (EPC).
According to the UK's National Nuclear Laboratory (NNL), the global SMR market is projected to reach 85 GW — approximately 300 units — worth $500 billion (about 753 trillion won) by 2035.
"This project is an advanced business model for developing and designing standardized SMRs," said Yoo Jae-ho, head of DL E&C's plant business division. "As a core partner of X-energy, we will lead the global SMR market."
