NuScale Power Gains Regulatory Approval, Boosting Customer Interest but No Deals Finalized

What's Happening?

NuScale Power, a company specializing in small modular reactors, has received approval from the Nuclear Regulatory Commission (NRC) for its 77-MW power module, which has led to increased interest from potential customers. Despite this interest, NuScale has not yet finalized any contracts. The company aims to secure 'hard contracts' with two or three major customers by the end of 2025. The approval marks a significant milestone for NuScale, as it is the only company with two NRC approvals for small modular reactors. The approval has amplified regulatory support for the nuclear industry, and NuScale is in advanced commercial dialogue with various stakeholders, including technology companies, utilities, and government entities.

Why It's Important?

The NRC's approval of NuScale's 77-MW module is a pivotal development for the nuclear industry, potentially accelerating the deployment of advanced nuclear technologies. This approval positions NuScale as a leader in the small modular reactor market, which could lead to increased investment and interest in nuclear energy as a viable alternative to traditional power sources. The regulatory support could also bolster domestic nuclear supply chains and facilitate reactor development on government-owned lands. The increased customer interest, particularly from large technology companies and the U.S. military, indicates a growing recognition of nuclear power's role in achieving energy security and sustainability goals.

What's Next?

NuScale plans to finalize customer deals by the end of 2025, with ongoing negotiations and term sheet submissions. The company continues to work on projects like Fluor Corp.'s proposed power plant in Romania, although timelines have shifted. NuScale's relationship with its exclusive partner, Entra1, remains crucial for commercializing and deploying its reactors. The company is focused on leveraging regulatory tailwinds to secure success stories in new nuclear deployments, which could further enhance its market position and influence future energy policies.