Korea, US unveil 3 investments in energy projects

Seoul and Washington have jointly announced plans for three major investment projects in the United States, as part of a $200 billion commitment under a Korea-U.S. agreement signed in November 2025. The initiatives aim to bolster cooperation in energy and other strategic sectors while opening new avenues for Korean suppliers in the U.S. market.

The first project, dubbed Project Star, involves a $22.3 billion, 6,472-megawatt combined-cycle gas power plant in Encinal, Texas. This facility will provide electricity directly to data centers, specifically for artificial intelligence applications. The plant's initial phase, consisting of one 1,952-megawatt gas turbine, is set to commence commercial operations in 2029, with full capacity expected by 2032.

The power purchase agreement for this project is structured as a tolling-style arrangement, where data center operators pay a fixed charge for contracted capacity while bearing variable costs such as fuel.

Additionally, the agreement paves the way for a framework to construct eight large nuclear reactors in the U.S., further expanding the bilateral partnership's reach into the energy sector. Lastly, a review of an Alaska liquefied natural gas (LNG) project is also part of the package, showcasing the commitment of both nations to explore diverse energy options and strengthen their joint efforts in the field.