NuScale Power
Nu Scale1 624efa40ae8ca

Nucor Invests in Nuclear Small Modular Reactor Venture

April 7, 2022
NuScale has signed 20 MOUs and expects to have $10B+ in revenues by 2030.

Steel giant Nucor Corp. has pledged $15 million to the planned merger of NuScale Power LLC, a developer of nuclear small modular reactors, with a blank-check company.

NuScale executives have agreed to buy $15 million worth of shares of Spring Valley Acquisition Corp. via a private placement that will help fund the commercialization of NuScale’s technologies. NuScale and Spring Valley in December agreed to combine in a deal valuing the combined company at $1.9 billion. Among other backers of the project are Samsung C&T Corp., Segra Capital Management and Pearl Energy. NuScale is a subsidiary of engineering and construction conglomerate Fluor Corp., which will remain the entity’s majority owner once the Spring Valley transaction is completed.

“We are looking for safe and reliable sources of power generation that are consistent with our sustainability goals,” Leon Topalian, Nucor’s president and CEO, said in a statement. “The continued development of small modular nuclear reactors is critical to ensure our nation has carbon-free, baseload power, which is why we are making this investment.”

The NuScale team has signed 20 memoranda of understanding with energy companies and other organizations to build their carbon-free small reactors across the world starting late this decade. By 2030, they expect the company, which today employs about 500 people, to book revenues of more than $10 billion and generate at least $3 billion in EBITDA.

Shares of Nucor (Ticker: NUE) were up slightly to nearly $147 in April 7 morning trading. They are up nearly 50% over the past six months, pushing the company’s market capitalization to about $40 billion.

About the Author

Geert De Lombaerde | Senior Editor

A native of Belgium, Geert De Lombaerde has been in business journalism since the mid-1990s and writes about public companies, markets and economic trends for Endeavor Business Media publications, focusing on IndustryWeek, FleetOwner, Oil & Gas JournalT&D World and Healthcare Innovation. He also curates the twice-monthly Market Moves Strategy newsletter that showcases Endeavor stories on strategy, leadership and investment and contributes to other Market Moves newsletters.

With a degree in journalism from the University of Missouri, he began his reporting career at the Business Courier in Cincinnati in 1997, initially covering retail and the courts before shifting to banking, insurance and investing. He later was managing editor and editor of the Nashville Business Journal before being named editor of the Nashville Post in early 2008. He led a team that helped grow the Post's online traffic more than fivefold before joining Endeavor in September 2021.

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!