NuScale Power’s Utah Power Plant Project, a small modular reactor (SMR) business that garnered attention as the first of its kind in the United States, has been halted due to cost issues. Major domestic companies, including Doosan Enerbility and Samsung C&T, were participating in the project, and the stoppage is expected to inevitably affect them.
On Nov. 8 (local time), NuScale Power and the Utah Associated Municipal Power Systems (UAMPS) announced that they had mutually agreed to discontinue the Carbon-Free Power Project (CFPP).
Bloomberg reported that the project was suspended due to a surge in costs. NuScale Power had estimated in 2021 that it could supply electricity at US$58 per megawatt (MW). However, this cost has recently risen to US$89 per MW. It is understood that due to the significant increase in unit costs, many regions affiliated with UAMPS withdrew from the CFPP initiative. Both parties stated on that day, “The project was halted due to the failure to secure enough buyers,” which is related to these developments. UAMPS includes participation from 50 small local governments in Utah.
Small modular reactors have been highlighted for their superior stability and economy compared to conventional nuclear power plants, and the relative ease of site selection has made them a promising next-generation nuclear power source. In the United States, in addition to NuScale, companies such as Holtec, TerraPower, and X-energy are also pursuing small modular reactor projects. NuScale’s Utah CFPP initiative was the first small modular reactor project approved in the U.S., with operations targeted to begin in 2029.
Multiple South Korean companies are also involved in small modular reactor projects in the U.S. Doosan Enerbility, Samsung C&T, and GS have been actively engaged in NuScale’s SMR project. The Energy Transition Forum revealed that domestic companies, including Doosan, DS Private Equity, IBK Securities, and BHI, hold about 33.4 million shares in NuScale, which corresponds to 64% of NuScale’s Class A common stock.
Furthermore, SK has invested in TerraPower, while Hyundai Engineering & Construction is participating in Holtec’s SMR project. TerraPower is also known for the investment by Microsoft founder Bill Gates.
Following the announcement of the CFPP project suspension, NuScale’s stock price plunged more than 20% on the day. The South Korean government and domestic companies have explained that the impact will be limited. An official from Doosan Enerbility stated, “Several other projects that NuScale is pursuing, such as in Romania, are progressing normally,” and emphasized that “there is no issue with the business viability of small modular reactors themselves.”
An official from the Ministry of Trade, Industry and Energy stated, “The project was halted due to economic reasons, not technical issues, and as it is an issue confined to certain regions in the U.S., the impact on South Korean companies is expected to be limited.”