Environment & Energy

Cancelled NuScale contract weighs heavy on new nuclear
By Paul Day
January 10, 202412:15 PM EST

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January 10 - NuScale, the first new nuclear company to receive a design certificate from the Nuclear Regulatory Commission (NRC) for its 77 MW Power Module SMR, said in November it was terminating its Carbon Free Power Project (CFPP) with the Utah Associated Municipal Power Systems (UAMPS).

UAMPS serves 50 community-owned power utilities in the Western United States and the CFPP, for which the Department of Energy approved $1.35 billion over 10 years subject to appropriations, was abandoned after the project failed to attract enough subscriptions.

NuScale shares tumbled 37% to less than $2 on the day of the news, November 8, and have remained largely between $2.5 and $3.5 since then. The shares hit highs of nearly $15 in August 2022 just three months after going public.

The CFPP had aimed to build NuScale SMR units at a site near Idaho Falls to be operable by 2029 though concerns arose that some at UAMPS members may be unwilling to pay for power from the project after NuScale raised the target price to $89/MWh in January, up from a previous estimate of $58/MWh.

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