DL E&C announced on the 29th that the results of its investment in U.S. SMR company X-Energy are becoming visible. The company explained that, following a roughly sixfold increase in the value of its stake in three years driven by the successful Nasdaq listing of X-Energy, it has also secured a contract for SMR standardized design, thereby expanding its influence in the global market.

DL E&C stated that, as of the 28th (local time), the value of its stake in X-Energy stands at approximately KRW 172 billion, up nearly sixfold in three years from about KRW 30 billion at the time of its Series C investment in 2023. Industry observers view the rise in corporate value as being driven by growing expectations for the SMR industry amid increased electricity demand due to the expansion of AI infrastructure.

X-Energy set its IPO price at USD 23, above the upper end of the indicative range, demonstrating strong market interest. Its share price has continued to climb following the listing, signaling a successful IPO. The company is said to have raised more than USD 1 billion through the listing, setting a record for the largest capital raised by a nuclear power company.

X-Energy is a Generation IV SMR developer supported by the U.S. Department of Energy and possesses high-temperature gas-cooled reactor (HTGR) technology. The company has also secured a large-scale project pipeline through partnerships with global companies such as Amazon, Dow and Centrica, which is seen as boosting growth expectations.

DL E&C explained that it has been a major investor in X-Energy since the early investment stage and has continued cooperation under a strategy to position SMRs as a future growth engine. In particular, it is known to have made a preemptive investment in consideration of synergies with its existing plant business.

The company added that the results of cooperation between the two firms have begun to materialize in earnest this year.

X-Energy is pursuing SMR development with the goal of commencing commercial operation in the early 2030s, and DL E&C is to be responsible for the standardized design of the nuclear power plant.

Last month, the two companies signed a design contract worth about USD 10 million (approximately KRW 15 billion), through which DL E&C said it has preemptively secured Generation IV SMR technology and EPC (engineering, procurement and construction) execution capabilities. This is the first case in which a Korean construction company has received direct payment from an SMR developer to carry out a project.

DL E&C emphasized that it is also competitive in the existing nuclear power sector. In particular, it holds the largest track record in Korea for the replacement of steam generators, a core facility of nuclear power plants, which it described as an area requiring advanced technological capabilities and construction experience.

The company noted that it has carried out main equipment construction for Hanbit Nuclear Power Plants Units 5 and 6 and Shin-Kori Units 1 and 2, as well as steam generator replacement work for Hanul Units 1 and 2 and 3 and 4, and Hanbit Units 5 and 6. Industry observers expect that such experience in large-scale nuclear power plant construction will generate synergies when combined with the SMR business.

SMRs are small modular reactors with an electric output of 300 MW or less, regarded as a next-generation energy source capable of simultaneously ensuring stable power supply and carbon reduction. Analysts say they are emerging as core infrastructure at a time when electricity demand is surging due to the expansion of AI data centers. The UK National Nuclear Laboratory projects that the global SMR market will reach about USD 500 billion (approximately KRW 740 trillion) by 2035.

Yoo Jae-ho, Head of DL E&C’s Plant Business Division, said, “We expect a virtuous cycle in which the rise in X-Energy’s corporate value leads to an increase in the value of our stake,” adding, “Based on our experience in constructing large nuclear power plants, we will expand investment in SMRs and strengthen our global competitiveness.”

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