Texas power plant, nuclear projects under discussion in South Korea's US investment package

• A $22.3 billion gas-fired power plant in Texas (6.3 GW capacity) would supply electricity to AI data centers and semiconductor facilities, developed in stages starting with 1.4 GW.
• Nuclear investments could include up to eight reactors (potentially $120 billion at $15 billion each), with six using Westinghouse technology and two using South Korean designs, plus a potential $2.25-3 billion stake in Westinghouse itself.
• Additional projects under discussion include participation in Alaska's $44 billion LNG project, a spent nuclear fuel reprocessing facility involving 4,000 tons of material, and carbon capture investments.

Summary

Key Investment Package: South Korea and the United States are finalizing details of a $350 billion investment package agreed under a 2024 trade deal that reduced US tariffs on South Korean goods to 15%. Of this total, $150 billion is allocated to shipbuilding, with $200 billion designated for strategic projects still under negotiation.

Major Projects Under Discussion:

Texas Power Plant: A 6.3 GW combined-cycle gas power plant in Encinal, Texas, targeting AI data centers and semiconductor facilities. The phased development involves $22.3 billion in investment, starting with 1.4 GW capacity before expanding to 4.9 GW.

Nuclear Reactors: Plans for up to eight large nuclear reactors in the US, potentially costing approximately $15 billion per reactor—representing a substantial portion of the investment package. Six reactors would use Westinghouse technology, while two would employ South Korean designs, marking the first Korean reactors in the US.

Westinghouse Stake: Seoul seeks to acquire 5-15% of Westinghouse Electric ahead of its planned IPO. A 15% stake could be valued at $2.25-3 billion, based on projected valuations of $15-20 billion. Westinghouse is currently owned by Brookfield (51%) and Cameco (49%).

Alaska LNG Project: A $44 billion liquefied natural gas development featuring a 1,300-km pipeline from northern Alaska to Nikiski for Asian exports. South Korea is pursuing inclusion without binding commitment due to high-risk concerns.

Additional Projects: Discussions include nuclear fuel reprocessing (4,000 tons of spent fuel) linked to South Korea's nuclear submarine ambitions, and carbon capture utilization and storage (CCUS) initiatives.

Market Implications: This comprehensive investment framework strengthens US-South Korea economic ties while advancing American energy infrastructure and nuclear capabilities.