South Korean engineering and construction company Hyundai Engineering and Construction has signed a basic agreement with US small modular reactor developer First American Nuclear Company (FANCO) to jointly advance a next-generation nuclear power system project, according to The Asia Business Daily, with the deal signed in New York.

FANCO has developed the EAGL-1, a liquid metal fast reactor that uses a liquid lead-bismuth alloy as its coolant and is described as the only reactor model in the United States to employ this technology. The company is pursuing commercialisation through regulatory engagement with the US Nuclear Regulatory Commission.

The EAGL-1 generates approximately 240 MWe of power per reactor unit. Based on its modular design, a cluster of six reactors can supply electricity to approximately 1.2 million households. The technology is also designed to recycle spent nuclear fuel, reducing the volume of long-lived radioactive waste by more than 95%.

Under the agreement, Hyundai Engineering and Construction and FANCO will cooperate in the initial phase of the EAGL-1 project and explore implementation plans for participation as EPC partners in future project stages. The arrangement gives Hyundai Engineering and Construction potential involvement from preliminary design review through to full engineering, procurement and construction execution.

FANCO, in collaboration with the state of Indiana, has announced plans to create a Nuclear Energy Park and is pursuing the construction of a next-generation nuclear power cluster linking nuclear manufacturing facilities with energy complexes.

A Hyundai Engineering and Construction representative said: "This agreement is significant as it provides Hyundai Engineering and Construction with the opportunity to participate from the preliminary design review to full EPC execution for the next-generation SMR project in the U.S., while also expanding its nuclear reactor partnership network in the U.S. Through strategic collaboration with FANCO, we will support the successful commercialisation of EAGL-1 and strengthen our leading position in the rapidly growing U.S. SMR market."

The agreement positions Hyundai Engineering and Construction to deepen its footprint in the US nuclear sector at a time of accelerating interest in SMR technology as governments and utilities seek low-carbon baseload power solutions capable of complementing intermittent renewable energy sources.