Completion of merger creates publicly traded SMR company
03 May 2022
NuScale Power has completed its merger with Spring Valley Acquisition Corp to create the world's first and only publicly traded small modular reactor (SMR) technology provider. The merged company will use the proceeds from the transaction to accelerate the commercialisation of NuScale's SMR technology.
The combined company - which will operate as NuScale Power Corporation - is expected to have enterprise value of approximately USD1.9 billion and is to commence trading on the New York Stock Exchange today (3 May). The combination will provide "significant capital" to scale and accelerate the commercialisation 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 spectrum of future electric and thermal energy needs - from replacing coal-fired plants with carbon-free, dispatchable baseload electricity to powering 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 the design and deployment of SMR technology. As a public company, we can accelerate our efforts to help meet the world's urgent clean energy needs."
"NuScale's diversified business model is designed to drive exceptional financial results and create long-term value, monetising its intellectual property ... while driving recurring revenues through critical maintenance services over the lifecycle of a plant," Sorrells said. "We look forward to continuing to partner with NuScale as it grows its business and continues to help revolutionise the energy sector."
The combination has seen NuScale receive proceeds of about USD380 million, prior to transaction expenses, including USD235 million from the private investment in public equity - or PIPE - investors, including DS Private Equity, Nucor, SailingStone Capital Partners, Samsung C&T Corporation and Segra Capital Management, with participation by Spring Valley's sponsor which is backed by Pearl Energy Investment Management, LLC.
Portland, Oregon-based NuScale's existing strategic investors - which include 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 - have rolled 100% of their equity into the newly formed company. Fluor will continue to hold a majority interest in the company and will provide NuScale with engineering services, project management, administrative and supply chain support.
The NuScale Power Module - a pressurised water reactor with all the components for steam generation and heat exchange incorporated into a single unit, generating 77 MWe - in September 2020 became the first SMR design to receive approval from the US Nuclear Regulatory Commission. NuScale offers the units as VOYGR plants which can be scaled to meet customer needs. Doosan Enerbility recently announced it is to begin manufacturing main equipment for the first commercial deployment of a NuScale VOYGR power plant for Utah Associated Municipal Power Systems' Carbon Free Power Project which is to be built at a site at the Idaho National Laboratory in the USA.
Researched and written by World Nuclear News