HD Korea Shipbuilding & Offshore Engineering (HD KSOE) plans to invest up to 300 billion won ($206 million) to develop small modular reactor (SMR)-powered ships by 2030, marking a significant push into zero-carbon shipping technology.
The investment, part of a recent 600 billion won bond issuance, comes just a month after the company unveiled its first nuclear-propelled container ship model. The remaining funds will support hydrogen fuel cell development for land power grids by 2027 and maritime applications by 2028.
HD KSOE’s investment in nuclear propulsion technology aims to address the shipping industry’s 3% contribution to global carbon emissions while meeting stricter International Maritime Organization regulations. The company is developing molten chloride fast reactors (MCFR), considered fourth-generation technology with a 20-30 year life expectancy.
The South Korean shipbuilding giant has established partnerships with TerraPower, a U.S. nuclear power venture founded by Bill Gates, after investing $30 million in the company in 2022.
Industry analysts note significant hurdles remain, including cost and safety concerns. Building an onshore SMR can cost between 1-3 trillion won, while HD KSOE’s planned 70-megawatt maritime version will still cost hundreds of billions of won. By comparison, a conventional 15,000-TEU container ship costs approximately $250 million.
The move also represents HD Hyundai’s strategy to maintain technological advantage over Chinese competitors, who already control 70% of the global commercial vessel market compared to Korea’s 16%.
