Samsung C&T to invest $70 mn in US nuclear fission tech provider

Samsung C&T Corp. is set to invest up to 85 billion won ($7 million) in US nuclear fission technology provider NuScale Power, LLC. NuScale Power provides proprietary advanced nuclear small modular reactor (SMR) technology.

The Guru reported Thursday that NuScale Power and Spring Valley Acquisition Corp., a publicly traded special purpose acquisition company, announced that the previously disclosed contingency to Samsung C&T’s $30 million worth of PIPE investment has been satisfied.

The $30 million of Samsung C&T’s $50 million PIPE commitment was previously subject to the entry into a commercial arrangement among the Korean conglomerate, NuScale Power, and its majority shareholder Fluor Enterprises Inc. 

The investment blueprint dates back to July 2021 when Samsung C&T signed a strategic partnership agreement with NuScale Power. The leading advanced small modular reactors (SMRs) technology provider will receive up to $70 million in investment from the South Korean construction and engineering company.

NuScale Power is the provider of its own nuclear power solution dubbed the NuScale Power Module (NPM.) Capable of generating 77 megawatts of electricity, the NPM is widely considered to be safe, reliable and scalable. 

NuScale’s VOYGR power plant design can accommodate configurations of four, six and 12 modules that can provide up to 924 megawatts of electricity.

In 2022, The US Department of Energy (DOE) approved a multi-year cost share award to a new special purpose entity called Carbon Free Power Project, LLC,  that could provide up to $1.4 billion to help deploy a 12-module NuScale power plant located in the state of Idaho. 

In South Korea, Doosan Heavy Industries & Construction Co. and GS Energy Corp. and more have invested into the US firm.

Last December, NuScale Power and Spring Valley entered into a definitive business combination agreement. 

The two companies are pursuing a back-door listing on Nasdaq vis-a-vis an acquisition, with the M&A slated to be completed within the first half of this year. Its valuation is estimated to be around $1.9 billion. 

Fluor Enterprises, as NuScale’s majority shareholder, will have a 60% stake in the combined company.

Through an initial public offering, NuScale Power is expected to raise a total of $413 million – inclusive of the private investment in public equity worth $211 million from Samsung C&T and more.

Write to Market Insight at marketinsight@hankyung.com
Jee Abbey Lee edited this article.