Dive Brief:
- NuScale is currently engaged in advanced discussions with leading tech, industrial companies, utilities, and government entities regarding potential small modular reactor projects. They anticipate receiving approval from the U.S. Nuclear Regulatory Commission for their 77-MW reactor upgrade application later this year, as mentioned in a recent earnings report.
- The company has ordered essential components for six more modules from their partner, Doosan Enerbility, as they prepare for future customer orders. Additionally, they are progressing on a 462-MW power plant project in Romania, working alongside Fluor Corp., as stated by CEO John Hopkins during the earnings call.
- However, NuScale has not yet secured agreements with U.S. data center operators or industrial clients due to the complexities involved in finalizing these projects, Hopkins noted.
Dive Insight:
In their recent earnings presentation, NuScale shared that they experienced a significant revenue increase toward the end of last year and mentioned “broad customer interest” in their technology, useful across various industries and grid applications.
The resilience of NuScale’s reactors is a key feature, allowing them to operate through outages and return to service effectively when power is restored. Their reactors could also support microgrids for critical facilities, such as hospitals, and boost a grid increasingly reliant on renewable energy, addressing gaps left by retiring coal-fired power plants.
A Department of Energy report on transitioning coal to nuclear energy indicated that there’s potential for up to 174 GW of nuclear power capacity at 145 existing coal plants in the U.S.
Four key industrial opportunities for NuScale include data centers and AI, carbon capture and sequestration, water desalination, and hydrogen production. The new nuclear capacity qualifies for a substantial tax credit aimed at clean hydrogen production, as noted in the Inflation Reduction Act’s Section 45V.
After the collapse of the Carbon Free Power Project in November 2023, which aimed to supply 462 MW to a group of small utilities in Utah, NuScale has yet to formalize any agreements with U.S. utilities or industries.
In late October 2023, Standard Power, an “infrastructure as a service” provider, announced its choice of NuScale as the technology partner for two large data centers in Pennsylvania and Ohio. However, the current state of this partnership is unclear, as it was not addressed during the recent earnings call.
According to Hopkins, the main hurdle in customer discussions is negotiating and finalizing long-term power purchase agreements. “We are confident we’re getting closer to landing one of these deals,” he mentioned, referring to their recent order for additional modules.
This recent order is for components, not reactors specifically, and is meant to prepare for the first customer that agrees to purchase these modules. NuScale expects these long-lead orders will enable a 12-module commercial deployment by the early 2030s.
Hopkins also highlighted the value of having ENTRA1, a development partner that manages energy projects, involved in discussions with prospective clients. NuScale is also exploring collaborations with utility operators like AEP and potentially Xcel Energy.
NuScale is in the process of obtaining NRC approval for an upgraded version of its small modular reactor design, which uses commonly available low-enriched uranium. The technical approval phase is mostly completed, and now it’s about navigating the necessary administrative steps. Hopkins expressed optimism, stating, “We’re close… once we finalize this design, we’re ready to move forward.”