NuScale merger to accelerate SMR commercialisation
14 December 2021
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NuScale Power has announced plans to merge with Spring Valley Acquisition Corp to create a new "first of its kind" energy company to accelerate the commercialisation of NuScale's small modular reactor (SMR). The new publicly listed company will be named NuScale Power Corporation and is projected to be 60%-controlled by NuScale's current majority owner Fluor Corporation.
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How a future NuScale plant could look (Image: NuScale)
"NuScale is building the next generation of nuclear power technology that is safer, more versatile and more cost-efficient than ever before," NuScale President and CEO John Hopkins said. "The scale of our ambition is only matched by the world's enormous decarbonisation needs, and now is the right time to accelerate and expand our efforts to bring our trailblazing SMR technology to more customers around the world. Spring Valley will be a highly complementary strategic partner for NuScale as we enter this next phase of growth, with leadership that brings deep expertise in sustainable energy and a strong operating and investment record in the energy sector, including in nuclear power."
NuScale's proprietary NuScale Power Module is a pressurised water reactor with all the components for steam generation and heat exchange incorporated into a single unit, capable of generating up to 77 MWe. In 2020, it became the first - and to date, only - SMR to receive standard design approval from the US Nuclear Regulatory Commission. The company offers plant configurations of four, six and 12 power modules under the recently announced VOYGR name.
NuScale is currently working with Utah Associated Municipal Power Systems to deploy a NuScale VOYGR power plant in 2029, on a site at the US Department of Energy's (DOE's) Idaho National Laboratory. It has also been working to develop its customer pipeline beyond the USA, and has some 19 Memoranda of Understanding or agreements in 11 countries.
Under the terms of the merger agreement, the transaction is valued to be worth an estimated USD1.9 billion. NuScale expects gross cash proceeds of USD413 million on completion, including USD181 million of so-called PIPE investments from Samsung C&T Corporation, DS Private Equity, Segra Capital Management and Pearl Energy. NuScale intends to use these proceeds to fund its path to commercialisation.
Existing NuScale shareholders, including majority owner Fluor, will retain their equity in NuScale and roll it into the combined company. Fluor will also continue to provide NuScale with engineering services, project management, administrative and supply chain support. Additional existing strategic investors in NuScale include Doosan Heavy Industries and Construction, Samsung C&T Corporation, JGC Holdings Corporation, IHI Corporation, Enercon Services Inc, GS Energy, Sarens and Sargent & Lundy.
"Fluor expects that the proposed transaction will bolster and accelerate the path to commercialisation and deployment of NuScale Power's unique small modular nuclear reactor technology," Fluor Corporation Executive Chairman Alan Boeckmann said, adding that this is the "next step" in a plan first outlined by the company ten years ago to work with NuScale Power, the US Congress and the DOE to commercialise the technology. "Today's announcement is further evidence that cost-shared government funding to build first-of-a-kind commercial scale technology can attract private investment and yield results," he said.
Spring Valley CEO Christopher Sorrells described NuScale as a "bellwether" company that has developed pioneering technology that can have a transformational impact on humanity. "This is the rare chance to invest in an industry-defining technology. We are very pleased to partner with NuScale and its deeply knowledgeable management team to bring this critical technology to market," he said.
The transaction is expected to close in the first half of 2022 and is subject to approval by Spring Valley's shareholders as well as other customary closing conditions. Following the transaction, NuScale will continue to be led by its current leadership team.
Researched and written by World Nuclear News
"NuScale is building the next generation of nuclear power technology that is safer, more versatile and more cost-efficient than ever before," NuScale President and CEO John Hopkins said. "The scale of our ambition is only matched by the world's enormous decarbonisation needs, and now is the right time to accelerate and expand our efforts to bring our trailblazing SMR technology to more customers around the world. Spring Valley will be a highly complementary strategic partner for NuScale as we enter this next phase of growth, with leadership that brings deep expertise in sustainable energy and a strong operating and investment record in the energy sector, including in nuclear power."
NuScale's proprietary NuScale Power Module is a pressurised water reactor with all the components for steam generation and heat exchange incorporated into a single unit, capable of generating up to 77 MWe. In 2020, it became the first - and to date, only - SMR to receive standard design approval from the US Nuclear Regulatory Commission. The company offers plant configurations of four, six and 12 power modules under the recently announced VOYGR name.
NuScale is currently working with Utah Associated Municipal Power Systems to deploy a NuScale VOYGR power plant in 2029, on a site at the US Department of Energy's (DOE's) Idaho National Laboratory. It has also been working to develop its customer pipeline beyond the USA, and has some 19 Memoranda of Understanding or agreements in 11 countries.
Under the terms of the merger agreement, the transaction is valued to be worth an estimated USD1.9 billion. NuScale expects gross cash proceeds of USD413 million on completion, including USD181 million of so-called PIPE investments from Samsung C&T Corporation, DS Private Equity, Segra Capital Management and Pearl Energy. NuScale intends to use these proceeds to fund its path to commercialisation.
Existing NuScale shareholders, including majority owner Fluor, will retain their equity in NuScale and roll it into the combined company. Fluor will also continue to provide NuScale with engineering services, project management, administrative and supply chain support. Additional existing strategic investors in NuScale include Doosan Heavy Industries and Construction, Samsung C&T Corporation, JGC Holdings Corporation, IHI Corporation, Enercon Services Inc, GS Energy, Sarens and Sargent & Lundy.
"Fluor expects that the proposed transaction will bolster and accelerate the path to commercialisation and deployment of NuScale Power's unique small modular nuclear reactor technology," Fluor Corporation Executive Chairman Alan Boeckmann said, adding that this is the "next step" in a plan first outlined by the company ten years ago to work with NuScale Power, the US Congress and the DOE to commercialise the technology. "Today's announcement is further evidence that cost-shared government funding to build first-of-a-kind commercial scale technology can attract private investment and yield results," he said.
Spring Valley CEO Christopher Sorrells described NuScale as a "bellwether" company that has developed pioneering technology that can have a transformational impact on humanity. "This is the rare chance to invest in an industry-defining technology. We are very pleased to partner with NuScale and its deeply knowledgeable management team to bring this critical technology to market," he said.
The transaction is expected to close in the first half of 2022 and is subject to approval by Spring Valley's shareholders as well as other customary closing conditions. Following the transaction, NuScale will continue to be led by its current leadership team.
Researched and written by World Nuclear News
Fluor-Backed NuScale Power Signs Agreement to Accelerate Small Modular Reactor Commercialization
Tue., December 14, 2021
- Merger agreement with Spring Valley Acquisition Corp. anticipated to close in first half of 2022
- Combined company expected to be first publicly-traded advanced small modular reactor (SMR) technology developer
- NuScale’s module design enables future low-carbon power generation
IRVING, Texas, December 14, 2021--(BUSINESS WIRE)--Fluor Corporation (NYSE: FLR)
announced today that NuScale Power, LLC, in which Fluor is the majority investor, has signed a merger agreement with Spring Valley Acquisition Corp. (NASDAQ: SV) (Spring Valley). Fluor has invested more than $600 million in NuScale Power since 2011 to help bring its technology to market. The proposed transaction is anticipated to close in the first half of 2022 subject to customary closing conditions. Upon completion of the transaction, Fluor projects to own approximately 60 percent of the combined company, based on the PIPE investment commitments received and the current equity and in-the-money equity equivalents of NuScale Power and Spring Valley.
"Fluor expects that the proposed transaction will bolster and accelerate the path to commercialization and deployment of NuScale Power’s unique small modular nuclear reactor technology," said Alan Boeckmann, executive chairman, Fluor. "This is the next step in Fluor’s plan, first outlined 10 years ago, to work closely with NuScale Power, Congress and the Department of Energy to commercialize this unique carbon-free energy technology.
"Today’s announcement is further evidence that cost-shared government funding to build first-of-a kind commercial scale technology can attract private investment and yield results. Fluor will continue to serve as an important partner by providing NuScale Power and its clients with world-class expertise in engineering services, project management and supply chain support," Boeckmann said.
NuScale Power is the developer of the only SMR technology that has received Standard Design Approval from the U.S. Nuclear Regulatory Commission (NRC). After merging with Spring Valley, the combined company will become the first and only publicly-traded company focused on development of advanced SMR technology.
NuScale Power’s innovative, carbon-free nuclear power solution offers clients safe, scalable and deployable 77-megawatt modules in configurations of four, six or 12 modules. The SMR technology can be integrated into electric grids to complement existing renewable energy sources and provide ongoing, consistent and reliable baseload power.
Fluor, together with NuScale Power, continues to advance the first SMR cost-reimbursable services contract with Utah Associated Municipal Power Systems (UAMPS). UAMPS awarded Fluor a contract in January 2021 to provide estimating, development, design and engineering services for its Carbon-Free Power Project.
Forward-Looking Statements
This release may contain forward-looking statements (including without limitation information concerning the timing and results of the proposed transaction and statements to the effect that Fluor or its management "will," "believes," "expects," "anticipates," "plans" or other similar expressions). Actual results may differ materially as a result of a number of factors. Caution must be exercised in relying on these and other forward-looking statements. Due to known and unknown risks, Fluor’s results may differ materially from its expectations and projections.
Additional information concerning factors that could affect Fluor’s results can be found in Fluor’s public periodic filings with the Securities and Exchange Commission, including the discussion under the heading "Item 1A. Risk Factors" in Fluor’s Form 10-K filed on February 26, 2021. Such filings are available either publicly or upon request from Fluor’s Investor Relations Department: (469) 398-7222. Fluor disclaims any intent or obligation other than as required by law to update its forward-looking statements in light of new information or future events.
About Fluor Corporation
Fluor Corporation (NYSE: FLR) is building a better world by applying world-class expertise to solve its clients’ greatest challenges. Fluor’s 44,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world. Fluor had revenue of $14.2 billion in 2020 and is ranked 196 among the Fortune 500 companies. With headquarters in Irving, Texas, Fluor has been providing engineering, procurement and construction services for more than 100 years. For more information, please visit www.fluor.com or follow Fluor on Twitter, LinkedIn, Facebook and YouTube.
Why Fluor Stock Jumped Nearly 10% in Early Trading Today
The construction company backed a start-up, and that company is going public via a blank check company.
Reuben Gregg Brewer
(TMFReubenGBrewer)
Dec 14, 2021 at 11:32AM
Key Points
Not much is actually happening with Fluor, but a company it has been funding for a decade is about to make big changes.
What happened
Shares of engineering and construction giant Fluor (NYSE:FLR) rose nearly 10% at one point in the first hour of trading on Dec. 14. The big news really wasn't directly related to Fluor, however, as it was NuScale Power that had agreed to be bought by a blank check company. Here are the top-level details and why Fluor's stock jumped on the deal.
So what
Essentially, NuScale Power is going public, using the special-purpose acquisition company (SPAC) route to avoid what would likely be a more time-consuming and complicated initial public offering (IPO). Spring Valley Acquisition (NASDAQ:SV), which barely moved on the news, is the buyer, with the deal expected to close in the first half of 2022. The combined company, which will be called NuScale Power after the deal is consummated, is expected to have an enterprise value of $1.9 billion.
IMAGE SOURCE: GETTY IMAGES.
What does any of this have to do with Fluor? The engineering company is the majority owner of NuScale Power, having invested $600 million in the company over the past decade or so. The investment makes sense, given that NuScale is developing a new modular nuclear reactor that Fluor could end up building. The blank check transaction, meanwhile, is expected to result in more than $400 million in cash that can be used to fund NuScale's research and development efforts. That would reduce Fluor's need to keep putting money into the nuclear upstart. Fluor, meanwhile, will own roughly 60% of the newly public NuScale Power. So there's a reason investors are excited here, noting that the value of some blank check companies have risen sharply subsequent to their mergers. Thus, there's potential upside here, as well.
Now what
If you own Fluor and are happy with it, there's probably nothing worth doing at this point. It is, basically, the same company as before, only there's some additional upside potential thanks to its investment in NuScale. That said, it might be worth keeping an eye on this deal and the company that comes out of it, given that Fluor will be the majority owner of NuScale Power after it "goes public."
The construction company backed a start-up, and that company is going public via a blank check company.
Reuben Gregg Brewer
(TMFReubenGBrewer)
Dec 14, 2021 at 11:32AM
Key Points
Not much is actually happening with Fluor, but a company it has been funding for a decade is about to make big changes.
What happened
Shares of engineering and construction giant Fluor (NYSE:FLR) rose nearly 10% at one point in the first hour of trading on Dec. 14. The big news really wasn't directly related to Fluor, however, as it was NuScale Power that had agreed to be bought by a blank check company. Here are the top-level details and why Fluor's stock jumped on the deal.
So what
Essentially, NuScale Power is going public, using the special-purpose acquisition company (SPAC) route to avoid what would likely be a more time-consuming and complicated initial public offering (IPO). Spring Valley Acquisition (NASDAQ:SV), which barely moved on the news, is the buyer, with the deal expected to close in the first half of 2022. The combined company, which will be called NuScale Power after the deal is consummated, is expected to have an enterprise value of $1.9 billion.
IMAGE SOURCE: GETTY IMAGES.
What does any of this have to do with Fluor? The engineering company is the majority owner of NuScale Power, having invested $600 million in the company over the past decade or so. The investment makes sense, given that NuScale is developing a new modular nuclear reactor that Fluor could end up building. The blank check transaction, meanwhile, is expected to result in more than $400 million in cash that can be used to fund NuScale's research and development efforts. That would reduce Fluor's need to keep putting money into the nuclear upstart. Fluor, meanwhile, will own roughly 60% of the newly public NuScale Power. So there's a reason investors are excited here, noting that the value of some blank check companies have risen sharply subsequent to their mergers. Thus, there's potential upside here, as well.
Now what
If you own Fluor and are happy with it, there's probably nothing worth doing at this point. It is, basically, the same company as before, only there's some additional upside potential thanks to its investment in NuScale. That said, it might be worth keeping an eye on this deal and the company that comes out of it, given that Fluor will be the majority owner of NuScale Power after it "goes public."
#corp
View source version on businesswire.com: https://www.businesswire.com/news/home/20211214005543/en/
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