Korea-US Investment Plan Advances With Texas Power Project and Nuclear Framework

South Korea and the United States have moved to implement a major bilateral investment package by outlining three energy initiatives, led by a $22.3 billion gas-fired power complex in Texas intended to supply electricity to artificial intelligence data centers.

The Texas development, known as Project Star, has been selected as the first formal investment under Seoul’s strategic commitment to the United States. The planned 6,472-megawatt combined-cycle facility in Encinal is expected to begin its first phase of commercial operations in 2029 and reach full operation in 2032. US developer Related Companies and power producer NextEra Energy are set to lead the project, while Lewis Energy Group will provide the site and supporting resources.

South Korean companies are expected to pursue contracts involving equipment, engineering, construction and long-term maintenance. Seoul’s industry ministry has presented the project as an opportunity for Korean suppliers and builders to enter the US gas-power market while generating returns on public investment. The project has completed required committee reviews and has been reported to the National Assembly.

A second initiative, Project Power, establishes a cooperation framework that could direct as much as $120 billion toward eight large nuclear reactors in the United States. The proposed portfolio includes two Korean-designed APR1400 reactors and six Westinghouse AP1000 units. However, the framework does not itself authorize construction of all eight plants. Locations, ownership arrangements and schedules have not been finalized, and each project will require a separate commercial assessment and domestic approval.

The plan could also expand the participation of Korean construction and equipment companies in Westinghouse’s supply chain. Korean investors, including state-run Korea Electric Power Corp. and Korea Hydro & Nuclear Power, are separately expected to pursue a minority stake in Westinghouse, though pricing and other terms remain under negotiation.

The third initiative, Project North, concerns possible South Korean participation in an Alaska liquefied natural gas development linking the North Slope to an export terminal in Nikiski. Seoul has emphasized that participation will depend on a review of commercial viability. The government sees potential strategic value in diversifying gas supply routes but has not made a final investment decision.

The three initiatives fall within South Korea’s $200 billion strategic investment commitment, itself part of a broader $350 billion package agreed alongside a bilateral trade deal. Seoul has said commercial returns, risk controls and opportunities for Korean companies will be central to final decisions because taxpayer funds are involved.