The Following is the Transcript of Dr. Lee's Interview with the Energy Connects on June 16, 2023.

Julian Walker Hello and welcome to our Energy Connects studio, the Global Energy Show 2023. I'm delighted to have sitting next to me, Dr. Lee Tae-Ho, Senior Vice President of the Korea Atomic Energy Research Institute. Thank you so much for joining me.

Dr. Lee Tae-Ho Thank you very much for arranging this interview. It's my pleasure to talk about my institute, KAERI, our SMART technology and our business in Canada. 

Walker Great. Well, let's get straight into it. Could you tell me a bit more about your SMART technology and how did you come by developing it?

Dr. Lee The System-integrated Modular Advanced Reactor, SMART, was developed by Korea Atomic Energy Research Institute (KAERI) in collaboration with the Korean industry. Normally SMR is an advanced reactor that have a power capacity of up to 300 megawatt electricity. And according to the IAEA, there are more than eighty SMR designs under different stages of development and deployment globally. SMART became the world's first licensed SMR design when the Korean regulatory body issued standard design approval in 2012. This means that it proved its safety as an SMR and technical readiness for deployment. If I add some technical feature of SMART, it is an advanced water-cooled integral reactor with the thermal output of 365 megawatts thermal. It was developed by harmonizing innovative concepts and the proven commercial technology, combining the innovative concepts and the commercial technology proven in pressurized water-cooled reactor. Innovative technologies have been implemented; such as integral reactor, modularization of on-site installation and maintenance, passive safety system and the fully digitized control system. Based upon its proven safety, and the long experience of construction and operation of pressurized water-cooled reactor, SMART has greatly enhanced the safety, easy construction and operability and the competitive economics.

Walker It's really interesting, Dr. Lee. And what are some of the benefits of SMART technology for the energy industry?

Dr. Lee SMART provides the carbon free energy and power for various application, including oil sands operations in competitively priced, environmentally acceptable and reliable way. It is a real reactor for immediate deployment. Technology embedded in SMART had been proven through comprehensive technology validation program. Especially in oil sands application, thermal output of SMART is suitable to replace the current operating steam generator system for SAGD process in Alberta. Also, it is deployable just where steam is required. Through the deployment of SMART, Canada will share the strengths of the Korean nuclear industry. And SMART cooperation will promote establishment of SMR supply chain and job creation in Canada. And also Korean business will find the clean energy business opportunity abroad. Korea is widely known for its strong supply chain, which enables construction of nuclear power plant on time, on budget. Korean companies will be the best partners for Canadians who want to enter the SMR business.

Walker Very interesting and you mentioned that about Canada entering the SMR business. Why is Alberta looking at small modular reactors for its nuclear projects?

Dr. Lee Yes, actually, Canada introduced the Greenhouse Gas Pollution Pricing Act in 2018. According to the act, the price on carbon pollution increases annually until it reaches $170 per ton in 2030. Such measures naturally weaken competitiveness and the economics of the current energy industry of Canada, heavily relying on fossil fuel. SMR opens a unique window since technology is deployable in many places that conventional large-sized nuclear power plant haven’t reached so far. As Canada's SMR Roadmap in 2018 envisions, SMR will replace the fossil fuel in heavy industry, the on-grid power generation, off-site mining, district heating and so on. We are paying attention to Alberta because its oil sand industry can be the best testbed for SMR to prove its value and the competitiveness as a clean energy technology. It is obvious that oil sand urgently needs carbon free energy solution like nuclear energy. Considering the phased carbon pricing, while oil sand field don’t need a large-sized reactor, SMART is the best size for oil sands application as we studied. However, we also know that SMR is not the only option for the industry to cut emission. There are other technological advancements such as carbon capture and storage. SMRs will survive only when they are technically and economically competitive against other energy technologies. Competition of clean energy business has already begun. I think as a SMR developer, Canada is the most valuable battlefield to win.

Walker That's really good to hear, Dr. Lee, and I think as only a bit more about what you see the opportunities for deploying a SMR then.

Dr. Lee Many countries are recently renewing their interest in nuclear energy as a way to achieving net zero target. And SMR is gaining more attention due to the wide range of application. So I think that SMR market is very promising, this is opportunity. But like other businesses, SMR should be profitable. Deployment of SMRs is still in demonstration scale rather than commercial. The existing regulation, supply chain and business model in the nuclear industry is still based on large conventional nuclear power plants, which does not fit SMR. The very merit of SMR comes from the differentiation from the large-sized nuclear power plant; safer, simpler, shorter manufacturing and construction period, lower cost and so on. It is necessary to demonstrate economic justification compared with other energy sources. Among others, licensing is key of nuclear business. The longer licensing takes, the more project costs. For SMRs I think the new licensing framework is necessary. In this sense, Canadian Nuclear Safety Commission (CNSC) has played a leading role in the development and the harmonization of SMR licensing. The introduction of Vendor Design Review is one of the important progresses CNSC has made. As a technology developer, interaction with regulator is very important, but it is not always easy, especially when we try new technology or designs. Therefore, Vendor Design Reviews are expected to help regulators to better understand new SMR designs. In the field of SMR, Canada is setting the course for the others to follow. Another fundamental question is about the public perception of safety and spent fuel management. This is a long-standing issue in the nuclear industry. Without the public's confidence on safety and the environmental sustainability, SMR won’t be widely accepted. This is a common task for global nuclear deployment.

Walker Absolutely, Dr. Lee. Just before we go, I just want to get your view points on what you see is the next stage for SMART in Canada?

Dr. Lee It's important. Yeah, Canada is the most important market for SMRs. Canadian SMR Roadmap suggested a clear picture of how SMART will help reduce emissions in Canadian industries. It projects SMR will create up to 6000 jobs and 19 billion dollars of direct and indirect economic impact between 2030 and 2040. Even though the projection is just number, we respect this approach because it provides a clear direction where the country wants to lead the SMR industry. As technology owner, KAERI is fully confident that SMART will be the solution for Canada's carbon reduction efforts. However, more importantly, such confidence should be turned into real business that makes sense for Koreans and Canadians. We know the reality well. We naturally see lowering technical, financial and institutional risk, uncertainties will be decisive in realizing this new technology. This is why we have signed the MOU with the Government of Alberta in April and came to the Global Energy Show this year. As public sector KAERI wants to help mitigate as much risk as possible. And there are many different tools public sectors can help private business avoid or reduce potential risks. Information gap is another barrier identified recently. We really hope our technology is known more widely and bring about better future as in many places as possible. And KAERI’s participation in this Global Energy Show is part of such efforts. With our technology, highly-qualified experts and broad network in the nuclear establishment, KAERI will support business, be it Korean or Canadian, who wants to apply SMART to the industry. In the course of ventures, we will also work with the Albertan and Canadian governments, industries and academia. Now we say that KAERI is here and SMART is available for you, Canada.

Walker Well, Dr. Lee, thank you so much for coming down to the studio. Very interesting to hear all about your SMART technology and the opportunities you see here in Canada.