DL E&C announced on the 25th that it has signed an “SMR standardization design” contract with X-energy, a leading U.S. small modular reactor (SMR) company. The contract value is approximately USD 10 million (about KRW 15 billion), and the design is scheduled to be completed by the first half of next year.

DL E&C is the first Korean construction company to directly perform SMR standardization design. Standardization design is the process of specifying how each facility in a power plant will be interconnected and operated, forming the backbone of SMR construction. The key is to repeatedly apply the same design to enhance productivity and reduce costs.

X-energy is a company that possesses fourth-generation SMR technology that uses helium gas as a coolant, unlike existing light-water reactors. It is currently promoting SMR construction in the U.S. states of Texas and Washington, and the electricity produced is planned to be supplied to Amazon Web Services (AWS), the world’s largest cloud company. The completed design will be applied across X-energy’s subsequent projects, starting with the first unit scheduled to begin operation in 2030.

Following its USD 20 million (about KRW 30 billion) investment in X-energy in 2023, DL E&C has further strengthened the strategic partnership between the two companies by signing this standardization design contract. Based on its experience in constructing power plants with a total capacity of 51.5GW in 19 countries worldwide, DL E&C plans to accelerate the standardization and modularization of SMRs.

DL E&C is also seeking to create synergies with its affiliate DL Energy. Under this structure, DL Energy will be responsible for SMR project development and investment, DL E&C will handle engineering, procurement and construction (EPC), and DL Energy will take charge of power generation and operation. Through this, the company intends to accelerate the establishment of an energy value chain at the group level, going beyond construction.

According to the UK’s National Nuclear Laboratory (NNL), the global SMR market is projected to reach 300 units and USD 500 billion (about KRW 753 trillion) in value by 2035.

Yoo Jae-ho, Head of the Plant Business Division at DL E&C, said, “This project goes beyond simple design to a sophisticated business model that develops and designs standardized SMRs,” adding, “As a core partner in X-energy’s business, we plan to lead the global fourth-generation SMR market and further strengthen the energy value chain.”

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