Through the investment, Japan NuScale Innovation will purchase a preferred equity position in NuScale Power from Fluor and other existing investors
JBIC invests $110m in SMR technology provider NuScale Power. (Credit: NuScale)
NuScale Power, a provider of nuclear small modular reactor (SMR) technology, has secured an investment of $110m from Japan Bank for International Cooperation (JBIC).
The investment will be made by JBIC via Japan NuScale Innovation (JNI), a special purpose investment entity, that also includes JGC and IHI. JBIC is a policy-based financial institution of the Japanese government.
Through the investment, Japan NuScale Innovation will acquire a preferred equity position in NuScale Power from Fluor and other existing investors.
The deal values 100% of the SMR technology provider at around $1.9bn.
In December 2021, NuScale Power agreed to merge with blank cheque company Spring Valley Acquisition to go public in the US.
After the closing of the pending merger, Japan NuScale Innovation is expected to have a stake of 8-9% in NuScale.
Both JGC and IHI had made significant investments in the company in 2021. The two Japanese firms established Japan NuScale Innovation as the conduit for their investments in NuScale Power. Through the new investment, Japan NuScale Innovation will consolidate its position as the single second largest investor in the nuclear power firm.
NuScale Power president and CEO John Hopkins said: “NuScale looks forward to having JNI as a significant NuScale investor to move the world closer toward our goals of decarbonization, while improving lives by supplying clean, affordable, reliable energy.
“This partnership capitalises on NuScale’s ongoing momentum to bring America’s first SMR to market and to secure a better future for all.”
Fluor will retain a majority interest in the SMR technology provider, post-merger. It will help the latter in achieving full commercialisation and undertake work to advance the Carbon Free Power Project in Idaho.
Fluor CEO David Constable said: “This strategic investment by JBIC, together with previous Japanese investments by JGC and IHI, further validates the successful 11-year, $1.3 billion private-public partnership of Fluor, NuScale and the U.S. Department of Energy.
“The newly-formed Japanese private-public partnership, along with other strategic investors, provides a strong financial and execution-ready platform for the widespread deployment of safe, affordable, carbon-free energy solutions.”