GS, SK, POSCO propose using coal plant sites for SMRs
GS Energy, SK Innovation, and POSCO Holdings have proposed utilizing existing coal power plant sites and transmission networks for Small Modular Reactor (SMR) projects.
Our take
How can Korea's existing fossil fuel infrastructure be repurposed for SMR development?
The repurposing of retired coal power plant infrastructure for SMR deployment would create a new market pathway for nuclear energy by leveraging existing grid connections and land, thereby reducing upfront development costs and accelerating deployment compared to greenfield projects.
South Korea is exploring pathways to decarbonize its heavy industries and power generation. This includes considering advanced nuclear technologies like Small Modular Reactors (SMRs) to meet growing electricity demands and industrial heat requirements. Companies are actively seeking viable business models for SMR deployment.
By proposing the use of existing coal power plant sites and transmission infrastructure, these companies are identifying a significant market inefficiency. This approach bypasses the lengthy and costly processes of securing new land and building new grid connections, which are major hurdles for new energy projects. The economic viability of SMRs is directly tied to predictable revenue streams, and the established infrastructure offers a more certain foundation for Power Purchase Agreements (PPAs) and thus, project financing.
For investors — Investors can anticipate a streamlined regulatory and construction pathway for SMR projects in Korea, potentially lowering capital expenditure and accelerating the timeline for commercial operation by leveraging existing, underutilized fossil fuel infrastructure.
Watch: Industry proposals to repurpose retired coal power plant sites and transmission networks for SMR development.
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