Nuscale Power Corp (SMR)

History and Background

NuScale Power was founded in 2007 as an Oregon State University spin-off. It focuses on developing and commercializing small modular reactors (SMRs). NuScale achieved a significant milestone in 2020 by receiving design approval from the U.S. Nuclear Regulatory Commission (NRC), the first SMR design to do so.

Core Business Areas

• Small Modular Reactors (SMR): NuScale's core business revolves around the design, development, and deployment of its SMR technology, specifically the VOYGRu2122 SMR power plant.
• Power Plant Development: Engaging in the overall development of nuclear power plants incorporating their SMR technology, including site selection, licensing support, and construction management assistance.
• Technology Licensing and Services: Licensing their SMR technology to utilities and other entities and providing related engineering, consulting, and project management services.

Leadership and Structure

John Hopkins is the President and CEO. The company has a board of directors overseeing the strategic direction, and various departments focused on engineering, project management, business development, and finance.

Key Offerings

• VOYGRu2122 SMR: NuScale's primary product is the VOYGRu2122 SMR, a 77 MWe (megawatt electric) light water reactor. The VOYGR power plant is scalable, offering configurations from a single module up to 12 modules for a total gross output of 924 MWe. Market share data specific to SMR deployments is still emerging, but NuScale is a leading contender. Competitors include GE Hitachi Nuclear Energy, Rolls-Royce SMR, and Holtec International.
• Engineering and Consulting Services: NuScale provides engineering, consulting, and project management services related to the deployment of their SMR technology. This includes support for licensing, site selection, and construction. Revenue from this segment is dependent on SMR project progress. Competitors include larger engineering firms in the nuclear industry like Bechtel, Fluor, and Jacobs.

Industry Overview

The nuclear power industry is undergoing a shift towards smaller, more flexible reactor designs like SMRs. There is growing interest in nuclear energy as a source of clean, reliable baseload power to meet increasing energy demands and decarbonization goals.

Positioning

NuScale is positioned as a leader in the SMR market, being the first to receive design approval from the U.S. NRC. Their competitive advantages include their advanced technology, modular design, and focus on safety and reliability.

Total Addressable Market (TAM)

The TAM for SMRs is estimated to be in the hundreds of billions of dollars over the next few decades. NuScale is well-positioned to capture a significant portion of this market, given its first-mover advantage and established regulatory approval. Various analysis estimates the SMR market to have a TAM of around $300 billion by 2040.

Key Competitors

• GE Hitachi Nuclear Energy (GE)
• Rolls-Royce SMR (No US Listing)
• Holtec International (No US Listing)

Competitive Landscape

NuScale's advantage lies in being the first SMR design approved by the U.S. NRC. However, competitors like GE Hitachi have established relationships with utilities and extensive experience in the nuclear industry.

Historical Growth: Historical growth is characterized by increasing development expenses and limited revenue.

Future Projections: Future growth is dependent on the successful deployment of the VOYGRu2122 SMR power plant. Analyst estimates vary widely, reflecting the uncertainty surrounding the technology's commercial viability.

Recent Initiatives: Recent initiatives include securing funding for the first VOYGR plant, advancing regulatory approvals, and forging partnerships with utilities and engineering firms.

NuScale Power is a pioneering company in the SMR market, holding the distinction of being the first to have their design approved by the NRC. However, it is in a pre-revenue stage and dependent on future deployment. Successful commercialization and scaling are critical for realizing its potential. The company needs to navigate competition, secure funding, and manage costs effectively to thrive in the burgeoning SMR market.

Data Sources:

• NuScale Power Corp. website
• U.S. Nuclear Regulatory Commission (NRC)
• Industry reports and market analysis
• SEC filings

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Market share data is estimated and subject to change. Future financial performance is not guaranteed.