Climate Insider Brief:
- NuScale raised significant capital through the sale of warrants, providing a boost for its global expansion and SMR technology development.
- NuScale’s VOYGR SMR is the first design certified by the U.S. NRC, offering scalable power generation solutions with flexible configurations.
- NuScale was eliminated from the UK government’s SMR competition but is pursuing projects in other regions, including Idaho, Poland, and Romania.
NuScale Power, the American small modular reactor (SMR) developer, announced on December 26, 2024, that it has successfully raised $227.7 million (£183.5 million) through the sale of warrants, a type of financial derivative. This significant cash injection comes as the company accelerates its global expansion plans and continues to push forward with its innovative SMR technology, which has already gained recognition for being the first and only design certified by the U.S. Nuclear Regulatory Commission (NRC).
The company revealed that 97% of its warrants were exercised, allowing investors to purchase 19,800,548 shares at $11.50 (£9.27) per share. Warrants, as explained by Investopedia, are financial derivatives that give the holder the right, but not the obligation, to buy or sell a security at a specified price before a predetermined expiration date.
NuScale’s pioneering VOYGR SMR technology is powered by the NuScale Power Module, a small, safe, pressurized water reactor capable of generating 77MWe or 250MW thermal (gross) per module. The technology can be scaled through flexible configurations, allowing up to 924MWe (12 modules) of output to meet customer needs. This adaptability is central to its appeal for a variety of markets, including remote areas and countries transitioning to low-carbon energy sources.
Despite this recent financial success, NuScale faced a setback in its bid to enter the UK market. The company was eliminated from the UK government’s competition for backing to deploy SMRs in the country, which is being run by Great British Nuclear (GBN). In September 2024, NuScale was dropped from the final shortlist, while competitors such as GE-Hitachi, Holtec Britain, Rolls-Royce SMR, and Westinghouse Electric Co. advanced. Negotiations with the remaining finalists are underway, with an expected winner or winners to be announced in the coming months.
However, the company’s strategic focus remains on other international opportunities. NuScale is actively pursuing projects in Idaho, Poland, and Romania, where it plans to deploy its SMR technology in the near future. The company’s president of VOYGR services and delivery, Tom Mundy, previously stated in 2022 that NuScale’s technology was “probably the most near-term deployable” among SMR vendors, and with its regulatory certification and design finalization, the company is well-positioned for future growth.
As the demand for clean, reliable, and scalable nuclear energy solutions grows globally, NuScale’s innovative approach to small modular reactors could play a crucial role in the energy transition. With substantial funding now secured, the company is poised to expand its influence in the global nuclear energy market, even as competition intensifies in key regions like the UK.
Key Insights:
- $227.7M Funding Boost: NuScale raised $227.7 million through the sale of 97% of its warrants, fueling its expansion plans.
- SMR Technology Advances: NuScale’s VOYGR SMR technology is the first to be certified by the U.S. NRC, with the flexibility to scale up to 924MWe.
- Global Expansion: NuScale has active projects in Idaho, Poland, and Romania and is exploring additional international opportunities.
- UK Setback: The company was dropped from the UK SMR competition but continues to pursue other markets.
As the competition for the future of small modular reactors heats up, NuScale’s financial progress and technology certification position it as a key player in the evolving nuclear energy landscape.
Source: New Civil Engineer
Featured Image: Credit: NuScale
