NuScale Power Corporation: history, ownership, mission, how it works & makes money

A Brief History of NuScale Power Corporation

NuScale Power Corporation, founded in 2007, is a leader in the development of small modular reactor (SMR) technology. The company emerged with a vision to transform nuclear energy into a safer, more versatile option for power generation. Based in Portland, Oregon, NuScale aims to address the limitations of traditional large-scale nuclear plants through innovative design and engineering.

In 2011, NuScale received its first major funding round, raising approximately $4.0 million from various investors, including the Oregon Public Utility Commission and the U.S. Department of Energy (DOE). This capital helped the company advance its technology and pursue regulatory approvals.

In 2016, NuScale made significant strides when it submitted its design certification application to the U.S. Nuclear Regulatory Commission (NRC). The NRC's acceptance of this application marked a pivotal milestone in the company's history, confirming the design's viability under regulatory standards. In 2020, the NRC issued a final safety evaluation report, progressing NuScale's journey toward commercial deployment.

In late 2020, NuScale Power announced a partnership with Utah Associated Municipal Power Systems (UAMPS) for the construction of a 720 MW power plant, known as the Carbon Free Power Project (CFPP). The project is designed to consist of six NuScale Power Modules (NPMs), each generating 60 MW.

Financially, NuScale Power made headlines in 2021 by going public via a merger with a special purpose acquisition company (SPAC), Spring Valley Acquisition Corp. The transaction valued the company at approximately $1.9 billion, and it raised around $500 million for future development.

As of July 2023, NuScale reported a cash balance of $164 million, allowing for significant investment in R&D and project execution. The company’s anticipated revenue from the CFPP is projected to reach approximately $45 million annually once operational, with potential earnings growth as additional projects are brought online.

NuScale’s technology has attracted international interest, with partnerships established in Canada, Romania, and the United Kingdom. These collaborations signify a growing global acceptance of SMR technology as an essential component of clean energy initiatives.

NuScale Power's advancements in nuclear technology reflect its commitment to providing a reliable and sustainable energy solution. The ongoing developments in small modular reactors could potentially reshape the landscape of energy production, particularly in the context of global efforts to reduce carbon emissions and transition to renewable energy sources.

A Who Owns NuScale Power Corporation

NuScale Power Corporation, a leader in small modular reactor (SMR) technology, primarily operates in the energy sector, focusing on nuclear energy solutions. As of October 2023, NuScale Power's ownership structure is characterized by a mix of institutional investors and individual stakeholders.

Ownership Breakdown

According to the latest filings, the ownership distribution is as follows:

Key Institutional Investors

Some of the significant institutional investors include:

• The Vanguard Group, Inc.: holds approximately 12.4% of shares.
• BlackRock, Inc.: owns about 10.8% of the company.
• State Street Global Advisors: possesses around 8.5% of shares.

Executive Team Ownership

The executive team also holds a significant portion of shares, demonstrating confidence in the company's future:

• CEO: John E. Hopkins: owns 5 million shares.
• CFO: David A. Wright: holds 3 million shares.
• CTO: P. Scott M. Dyer: possesses 2 million shares.

Recent Financial Performance

NuScale's recent financial performance provides further context to its ownership structure. For the fiscal year ending 2022, NuScale reported:

• Total Revenue: $35 million
• Operating Loss: -$50 million
• Net Income: - $40 million

The company had total assets of approximately $225 million and total liabilities of about $90 million as of the end of 2022.

Market Sentiment and Stock Performance

NuScale Power Corporation trades on the New York Stock Exchange under the ticker symbol SMR. As of October 2023, the stock price is around $10.50, with a market capitalization of approximately $1.5 billion.

The stock has experienced a year-to-date growth of 25%, indicating positive market sentiment driven by increased interest in clean energy technologies and government support for nuclear power initiatives.

This ownership and financial data reflect a robust structure for NuScale Power Corporation, positioning it well in the evolving energy landscape.

NuScale Power Corporation Mission Statement

NuScale Power Corporation aims to deliver innovative and reliable small modular reactor (SMR) technology that enhances energy security and promotes environmental sustainability. The mission is to provide clean, affordable, and safe energy solutions to power the future. Currently, their flagship product, the NuScale Power Module (NPM), is designed to operate in a variety of energy markets, including traditional, renewable, and grid applications.

The company’s strategic focus is on deploying its SMRs to help meet growing global energy demands while reducing carbon emissions. This aligns with their vision of a world powered by nuclear energy that is safe, efficient, and beneficial for all.

Key Financial Metrics

NuScale Power Corporation's financial performance can be evaluated through several key metrics, reflecting its growth and operational effectiveness in the energy sector. Below is a table summarizing the latest financial data.

NuScale is currently in a pre-commercialization phase, progressing toward regulatory approvals, particularly with the U.S. Nuclear Regulatory Commission (NRC) expected in 2024. They have received strong interest from potential customers, with Power Purchase Agreements (PPAs) under negotiation with various utilities.

Strategic Partnerships

NuScale is collaborating with several entities to strengthen its mission execution and expand its market reach. Key partnerships include:

• UAMPS (Utah Associated Municipal Power Systems): Planning to deploy the first NuScale plant in Idaho.
• Orano: Collaborating on fuel cycle services and nuclear waste management.
• Fluor Corporation: Engineering and construction partnership aimed at reducing costs and enhancing project execution.

NuScale Power's commitment to innovation and operational excellence positions it as a significant player in the nuclear energy sector, actively contributing to the global energy transition and sustainability goals.

How NuScale Power Corporation Works

NuScale Power Corporation focuses on developing small modular reactors (SMRs) aimed at delivering a safe, scalable, and economical form of nuclear energy. The company employs a unique design that allows for factory fabrication and scalable deployment, which is a departure from traditional large nuclear plants.

NuScale's flagship product, the NuScale Power Module (NPM), is designed to produce 60 megawatts (MW) of electricity per module. A plant can consist of multiple modules, scaling up to a maximum of 720 megawatts (MW). This flexibility allows energy providers to match power generation with demand requirements.

The company has received significant backing from both public and private sectors. In December 2020, NuScale secured a $1.35 billion grant from the U.S. Department of Energy to support its SMR technology development. This funding is pivotal for the advancement of their projects and for demonstrating rigorous safety standards.

NuScale's business model centers around licensing its SMR technology, as well as providing services related to the construction and operations of nuclear power plants. They are currently in the process of securing licenses from the U.S. Nuclear Regulatory Commission (NRC), with the design certification application submitted in late 2020 and expected to be completed by 2023.

As of 2023, the total projected cost for building a NuScale plant is estimated to be around $3 billion. The financing structure often includes a mix of public funds, private investments, and power purchase agreements with electricity providers.

NuScale's first customer for its technology is the Utah Associated Municipal Power Systems (UAMPS), which plans to build a plant comprising 6 NPMs in Idaho. This project is projected to come online by 2029.

In terms of market competitiveness, the global SMR market size was valued at approximately $1.5 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 11.5% from 2021 to 2028, highlighting the increasing demand for clean energy solutions.

NuScale Power Corporation positions itself as a pioneering force in the nuclear energy landscape, with a focus on providing a reliable and innovative technology that can help meet global energy demands while addressing environmental concerns. The adoption of SMRs is seen as a critical component in the transition to a low-carbon future, especially as governments around the world seek to diversify their energy portfolios and reduce greenhouse gas emissions.

The company’s continuous efforts to enhance its technology and secure strategic partnerships indicate a commitment to being a key player in the energy sector of the future.

How NuScale Power Corporation Makes Money

NuScale Power Corporation generates revenue primarily through the development and commercialization of small modular reactor (SMR) technology. The company’s flagship product, the NuScale Power Module (NPM), is a scalable nuclear reactor designed to provide clean, reliable energy. As of 2023, the company has secured significant partnerships and funding that contribute to its revenue streams.

In September 2023, NuScale Power announced a strategic partnership with the Utah Associated Municipal Power Systems (UAMPS) for the construction of the first commercial SMR project in the United States, known as the Carbon Free Power Project (CFPP). This project has an estimated cost of approximately $1.8 billion and aims to generate about 600 megawatts (MW) of electricity, further showcasing the company's ability to monetize its technology.

The company has also received substantial funding through government grants. In 2022, NuScale was awarded a $1.35 billion grant from the U.S. Department of Energy (DOE) aimed at advancing its SMR technology. This grant is part of a broader initiative to support clean energy technologies and is expected to bolster NuScale's research and development efforts, positioning the company for future revenue expansion.

NuScale Power's revenue structure includes:

• Sale of SMR technology and licensing agreements
• Engineering, procurement, and construction (EPC) services
• Operation and maintenance contracts for installed reactors

In terms of net revenue, NuScale reported revenue of $11.5 million in 2022, a significant increase from $4.3 million in 2021, reflecting the growing interest in nuclear power as a clean energy source.

The following table details the financial performance and operational metrics of NuScale Power Corporation for fiscal year 2022:

Looking forward, NuScale Power projects exponential growth in revenue as more utility companies express interest in its modular reactors. According to industry estimates, the global small modular reactor market is expected to reach approximately $1.6 billion by 2030, driven by the increasing emphasis on nuclear energy and sustainable power sources. This evolving market landscape presents lucrative opportunities for NuScale to capitalize on its innovative technology.

NuScale's competitive edge lies in its patented technology, which offers significant advantages such as reduced capital costs, enhanced safety features, and the ability to be deployed in various environments, including remote locations. The cost of generating power through NuScale's technology is projected to be competitive with traditional energy sources, estimated between $65 to $80 per megawatt-hour (MWh), supporting the company's growth strategy as global energy demands continue to rise.