Completion of the merger creates the publicly traded company SMR: Corporate

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May 03, 2022

NuScale Power has completed its merger with Spring Valley Acquisition Corp to create the world’s first and only publicly listed Small Modular Reactor (SMR) technology provider. The combined company will use the proceeds of the transaction to accelerate the commercialization of NuScale’s SMR technology.

The combined company – which will operate as NuScale Power Corporation – is expected to have an enterprise value of around $1.9 billion and is due to begin trading on the New York Stock Exchange today (May 3). The combination will provide “significant capital” to scale and accelerate the commercialization of NuScale’s advanced SMR technology. NuScale will continue to be led by John Hopkins as President and CEO. Spring Valley CEO Christopher Sorrells will join the public company’s board of directors.

“Our mission at NuScale has always been simple: to develop a safer, smarter and more cost-effective form of advanced nuclear power capable of meeting a wide range of future electrical and thermal energy needs – from replacing coal-fired power plants to carbon-free power plants, dispatchable baseload electricity to power commercial-scale water desalination and clean hydrogen production,” Hopkins said.

“Today marks a historic moment for NuScale as we become the first publicly traded company focused on designing and deploying SMR technology. As a public company, we can accelerate our efforts to help meet the world’s urgent clean energy needs.

“NuScale’s diverse business model is designed to drive exceptional financial results and create long-term value, by monetizing its intellectual property…while generating recurring revenue through lifecycle critical maintenance services. life of a factory,” Sorrells said. “We look forward to continuing to partner with NuScale as it grows its business and continues to help revolutionize the energy industry.”

The combination resulted in NuScale receiving proceeds of approximately $380 million, before transaction costs, including $235 million from private investment in public investors – or PIPEs – including DS Private Equity, Nucor , SailingStone Capital Partners, Samsung C&T Corporation and Segra Capital. Management, with participation from sponsor Spring Valley which is backed by Pearl Energy Investment Management, LLC.

Existing strategic investors in Portland, Oregon-based NuScale, including Fluor, Doosan Enerbility, Samsung C&T Corporation, JGC Holdings Corporation, IHI Corporation, Japan Bank for International Cooperation, Enercon Services, Inc, GS Energy, Sarens and Sargent & Lundy, launched 100% of their capital in the newly formed company. Fluor will continue to hold a controlling interest in the company and will provide NuScale with engineering, project management, administrative support and supply chain services.

The NuScale Power Module – a pressurized water reactor with all steam generation and heat exchange components integrated into a single unit, generating 77 MWe – became in September 2020 the first SMR model to receive the approval by the US Nuclear Regulatory Commission. NuScale offers the units as VOYGR factories that can be scaled to meet customer needs. Doosan Enerbility recently announced that it will begin manufacturing major equipment for the first commercial deployment of a NuScale VOYGR power plant for Utah Associated Municipal Power Systems’ carbon-free energy project, to be built on a site of the national laboratory of Idaho in the United States.

Research and writing by World Nuclear News



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