8-K: NuScale Power Secures Second U.S. NRC Design Approval for Uprated 77 MWe Small Modular Reactor

NuScale Power Corporation announced it has received U.S. Nuclear Regulatory Commission approval for its uprated 77 MWe small modular reactor design, marking its second such approval and reinforcing its leadership in the SMR industry.

Summary

• NuScale Power Corporation (NYSE: SMR) has received design approval from the U.S. Nuclear Regulatory Commission (NRC) for its uprated 250 MWt (77 MWe) NuScale Power Modules.
• This approval increases the power output per module from NuScale's previously approved 50 MWe design.
• NuScale remains the only Small Modular Reactor (SMR) technology company to have received design approval from the NRC, and this is its second design approved by the U.S. nuclear regulator.
• The uprated design strengthens ENTRA1 Energy's ability to produce and deliver energy as the most near-term American SMR power solution, with ENTRA1 Energy holding global exclusive rights for commercialization, distribution, and deployment of NuScale's SMRs.
• The approval enables ENTRA1 Energy Plants to provide a wider range of off-takers and consumers with reliable, carbon-free energy.
• NuScale's first Design Certification Application (DCA) for its 160 MWt (50 MWe) SMR design was accepted by the NRC in March 2017.
• The uprated design maintains the same fundamental safety case and passive safety features previously approved by the NRC.
• The NRC review process for this uprated design was completed earlier than originally slated for later summer.

Sentiment

Score: 9

Explanation: The document conveys a highly positive sentiment due to the significant regulatory milestone of receiving a second NRC design approval for an uprated SMR, which was achieved ahead of schedule. This reinforces NuScale's unique position as the only SMR technology with NRC approval and enhances its commercialization prospects.

Positives

• Received U.S. NRC design approval for the uprated 77 MWe SMR design, increasing power output per module.
• NuScale remains the only SMR technology company with NRC design approval, reinforcing its market leadership.
• This marks NuScale's second design approved by the NRC, demonstrating consistent regulatory success.
• The approval was granted earlier than expected, originally slated for later summer.
• The uprated design supports a wider range of off-takers and consumers, expanding market potential.
• Strengthens the commercialization efforts with partner ENTRA1 Energy, which holds exclusive global rights.

Risks

• The Company's liquidity and ability to raise capital.
• Failure to receive new contract awards.
• Cost overruns, project delays, or other problems arising from project execution activities, including failure to meet cost and schedule estimates.
• Uncertainties regarding obtaining regulatory approvals, and the timing thereof, to deploy SMRs in the United States and abroad.
• Forecasts regarding end-user adoption rates and demand for products in new and rapidly evolving markets.
• Limitations on the effectiveness of controls and procedures and remediation plans related thereto.
• Intense competition in the industries in which NuScale operates.
• Failure of partners to perform their obligations.
• Cyber-security breaches.
• Foreign economic and political uncertainties.
• Client cancellations of, or scope adjustments to, existing contracts.
• Failure to maintain safe worksites and international security risks.
• Risks or uncertainties associated with events outside of NuScale's control, including weather conditions, pandemics, public health crises, political crises, or other catastrophic events.
• Macroeconomic conditions.
• Client delays or defaults in making payments.
• The failure of suppliers, subcontractors, and other third parties to adequately perform services under contracts.
• Uncertainties, restrictions, and regulations impacting government contracts.
• The inability to hire and retain qualified personnel.
• The potential impact of certain tax matters.
• Possible information technology interruptions.
• The Company's ability to secure appropriate insurance.
• Liabilities associated with the performance of nuclear services.
• Foreign currency risks.
• The loss of one or a few clients that account for a significant portion of the Company's revenues.
• Damage to NuScale's reputation.
• Failure to adequately protect intellectual property rights.
• Asset impairments.
• Climate change and related environmental issues.
• Increasing scrutiny with respect to sustainability practices.
• The availability of credit and restrictions imposed by credit facilities for clients, suppliers, subcontractors, or other partners.
• Failure to obtain favorable results in existing or future litigation and regulatory proceedings, dispute resolution proceedings, or claims.
• Failure by NuScale or its employees, agents, or partners to comply with laws.
• New or changing legal requirements, including those relating to environmental, health, and safety matters.
• Failure to successfully implement strategic and operational initiatives.
• Restrictions on possible transactions imposed by charter documents and Delaware law.

Future Outlook

NuScale remains on track for deployment by 2030 and continues to advance with ENTRA1 Energy in the commercialization of its SMR technology, aiming to meet the growing demands of clean energy users globally.

Management Comments

• John Hopkins, NuScale President and Chief Executive Officer, stated, "We are thrilled that the NRC has approved our second SDA application, this time for our 77 MWe design. This marks a historic moment not only for NuScale, but the entire industry, as NuScale and ENTRA1 move closer to meeting the demands of clean energy users."
• John Hopkins also noted, "For more than a decade, our team has proudly worked alongside the NRC to achieve the successful approval of our designs. The NRC is domestically and internationally recognized and respected for its rigorous safety standards, and this approval is a crucial step toward meeting our goal of providing clean, reliable, and, most importantly, safe energy to off-takers and consumers."
• Carrie Fosaaen, Vice President of Regulatory Affairs and Services, commented, "Originally slated for approval later this summer, today's announcement marks the early completion of the NRC review process. NuScale is proud to have worked with the NRC and to have met its stringent regulatory application process as we continue to lead the way in the SMR industry with our second design approval."
• Carrie Fosaaen further added, "With today's announcement, NuScale continues to advance with ENTRA1 Energy in the commercialization of our SMR technology inside ENTRA1 Energy Plants while remaining steadfast in our mission to improve the quality of life for people around the world through safe, clean energy."

Industry Context

NuScale Power is positioned as a leader in the nascent small modular reactor (SMR) industry, being the only SMR technology company to have received design approval from the U.S. Nuclear Regulatory Commission. This second approval for an uprated design further solidifies its pioneering role and enhances its ability to address the increasing global demand for reliable, carbon-free energy solutions, particularly for a wider range of industrial and commercial off-takers.

Comparison to Industry Standards

• NuScale remains the only SMR technology company to have received design approval from the U.S. Nuclear Regulatory Commission (NRC), setting it apart from other developers in the industry.
• This is NuScale's second design approved by the NRC, demonstrating a unique track record of regulatory success in the SMR space, unlike any other company currently.

Related Party Transactions

• ENTRA1 Energy is NuScale's partner and independent power plant development platform, holding global exclusive rights to the commercialization, distribution, and deployment of NuScale's SMRs.

Stakeholder Impact

• **Shareholders:** Positive impact due to a significant regulatory milestone, reinforcing market leadership and future commercialization potential.
• **Customers/Off-takers:** Benefit from a wider range of reliable, carbon-free energy solutions with increased power output per module.
• **Employees:** Validation of their work and efforts in achieving regulatory approvals and advancing SMR technology.
• **Regulatory Authorities:** Demonstrates successful collaboration between NuScale and the NRC in advancing nuclear safety and technology.

Next Steps

• Continued commercialization of SMR technology with ENTRA1 Energy.
• Deployment of SMR technology by 2030.
• Meeting the demands of clean energy users globally.

Key Dates

Recommendation

Keywords

Small Modular Reactor, SMR, Nuclear Energy, NuScale Power, U.S. Nuclear Regulatory Commission, NRC, Design Approval, Clean Energy, Carbon-free energy, Advanced Reactor Technology, ENTRA1 Energy