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Released November 14, 2023 | SUGAR LAND
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November 14, 2023--Researched by Industrial Info Resources (Sugar Land, Texas)--There was fresh optimism in the Power Industry in January when the Nuclear Regulatory Commission (NRC) (Rockville, Maryland) issued its final approval for the design of a small modular reactor (SMR) developed by NuScale Power Corporation (NYSE:SMR) (Portland, Oregon).
Touted as the first company with U.S. approval for an SMR, NuScale worked with Utah Associated Municipal Power Systems (UAMPS) (Salt Lake City, Utah) to develop the Carbon Free Power Project (CFPP). The six-reactor project was aimed at providing 462 megawatts (MW) of carbon-free energy to UAMPS members by 2030.
But hopes for a new chapter in the U.S. Nuclear Power Renaissance were dampened last week when NuScale and UAMPS announced they were cancelling the project. The project appeared unlikely to gain enough subscriptions from local power providers to move forward, NuScale and UAMPS said in a joint press release. The project required an 80% subscription rate among UAMPS' members in order to continue.
According to news accounts, costs associated with the project have increased more than 50% in the last two years. In January, NuScale said the target price for power from the plant being developed by UAMPS was expected to be $89 per megawatt hour (MWh), up 53% from the previous estimate of $58 per MWh. For more information, see January 25, 2023, article - NRC Gives Final Approval to First SMR Reactor Design.
NuScale Chief Executive Officer John Hopkins attempted to put a positive spin on the situation: "Through our work with UAMPS and our partnership with the U.S. Department of Energy, we have advanced our NuScale Power Modules to the point that utilities, governments and industrials can rely on a proven SMR technology that has regulatory approval and is in active production. Our work with CFPP over the past 10 years has advanced NuScale technology to the stage of commercial deployment; reaching that milestone is a tremendous success which we will continue to build on with future customers."
During NuScale's quarterly earnings conference call, Hopkins said the company was in talks with several prospective customers in the U.S. and abroad, adding it was in the "fabrication phase" of its first six modules and was developing new ones, "to the point that utilities, governments and industrials can now rely on a proven small module reactor technology that has regulatory approval, is in an active production and is ready for commercial deployment."
The DOE said it has invested more than $600 million since 2014 to support the design, licensing and siting of NuScale's power plant and other SMRs.
For more information on the Idaho Falls SMR Power Station, subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a detailed project report.
"The cancellation of the UAMPS project by NuScale should be kept in proper context," commented Britt Burt, Industrial Info's vice president of research for the Electric Power industry. "This is an evolving segment of the industry; growing pains and setbacks can be expected along the way. Development of SMR projects is something unfolding around the world and I expect we will see this continue to take shape and towards the latter half of the decade see more of these projects moving forward to construction. In order to come close to meeting decarbonization goals globally, nuclear power must play a larger role in supplying our electricity demand. I remain optimistic the potential for deployment of SMRs is promising."
In the U.S., Industrial Info is tracking nine SMR projects, with a total investment value of $15.2 billion. Subscribers can click here for a list of detailed project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Touted as the first company with U.S. approval for an SMR, NuScale worked with Utah Associated Municipal Power Systems (UAMPS) (Salt Lake City, Utah) to develop the Carbon Free Power Project (CFPP). The six-reactor project was aimed at providing 462 megawatts (MW) of carbon-free energy to UAMPS members by 2030.
But hopes for a new chapter in the U.S. Nuclear Power Renaissance were dampened last week when NuScale and UAMPS announced they were cancelling the project. The project appeared unlikely to gain enough subscriptions from local power providers to move forward, NuScale and UAMPS said in a joint press release. The project required an 80% subscription rate among UAMPS' members in order to continue.
According to news accounts, costs associated with the project have increased more than 50% in the last two years. In January, NuScale said the target price for power from the plant being developed by UAMPS was expected to be $89 per megawatt hour (MWh), up 53% from the previous estimate of $58 per MWh. For more information, see January 25, 2023, article - NRC Gives Final Approval to First SMR Reactor Design.
NuScale Chief Executive Officer John Hopkins attempted to put a positive spin on the situation: "Through our work with UAMPS and our partnership with the U.S. Department of Energy, we have advanced our NuScale Power Modules to the point that utilities, governments and industrials can rely on a proven SMR technology that has regulatory approval and is in active production. Our work with CFPP over the past 10 years has advanced NuScale technology to the stage of commercial deployment; reaching that milestone is a tremendous success which we will continue to build on with future customers."
During NuScale's quarterly earnings conference call, Hopkins said the company was in talks with several prospective customers in the U.S. and abroad, adding it was in the "fabrication phase" of its first six modules and was developing new ones, "to the point that utilities, governments and industrials can now rely on a proven small module reactor technology that has regulatory approval, is in an active production and is ready for commercial deployment."
The DOE said it has invested more than $600 million since 2014 to support the design, licensing and siting of NuScale's power plant and other SMRs.
For more information on the Idaho Falls SMR Power Station, subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a detailed project report.
"The cancellation of the UAMPS project by NuScale should be kept in proper context," commented Britt Burt, Industrial Info's vice president of research for the Electric Power industry. "This is an evolving segment of the industry; growing pains and setbacks can be expected along the way. Development of SMR projects is something unfolding around the world and I expect we will see this continue to take shape and towards the latter half of the decade see more of these projects moving forward to construction. In order to come close to meeting decarbonization goals globally, nuclear power must play a larger role in supplying our electricity demand. I remain optimistic the potential for deployment of SMRs is promising."
In the U.S., Industrial Info is tracking nine SMR projects, with a total investment value of $15.2 billion. Subscribers can click here for a list of detailed project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
