A publicly-traded special purpose acquisition corporation is merging with NuScale Power, a developer of small modular reactors, in a move expected to turn NuScale, Portland, Ore., into a public company sometime in the first half of 2022.
The acquirer is an Oregon-based subsidiary of Spring Valley Acquisition Corp., a special entity set up in the Cayman Islands. Its CEO is Christopher Sorrells is also managing director of Dallas-based Pearl Energy Investments, which invests in energy ventures, usually in the $25 million to $150 million range, according to the firm’s Web site.
“This is the rare chance to invest in an industry-defining technology,” said Sorrells in a press release.
A Spring Valley subsidiary Spring Valley Merger Sub, an Oregon limited liability corporation, is the entity that is actually merging with NuScale, according to as Tuesday filing with the U.S. Securities Exchange Commission.
For the deal, Spring Valley combined $232 million in cash and $181 million in a Private investment in Public Equity (PIPE), according to its investor presentation. A PIPE is when an investor buys stock directly from a public company. Some of the PIPE investors for the NuScale merger are Samsung C&T Corporation, DS Private Equity, Segra Capital Management and Pearl Energy.
“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,” said NuScale president John Hopkins in a press release.
Founded in 2007, NuScale is developing a small modular reactor design, hoping to expand into manufacturing and selling the reactors. Small modular reactors are prefabricated facilities with parts manufactured in one location then transported to the reactor site for final assembly. A modular segment would consist of a mini-reactor of 77 megawatts. The design allows for extra modules to be added as needed.
In 2011, Fluor Corp. invested in NuScale, becoming a majority partner. It will become a 60% owner in the new public NuScale.
“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,” said Alan Boeckmann, Fluor Corp.’s executive chairman, in a press release. “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.”
So far, only one small modular reactor design — NuScale’s — has been approved by the U.S. Nuclear Regulatory Commission. Earlier this year, the Grant County Public Utility District in Washington state signed an agreement to explore use of NuScale’s reactors in a project. The Grant County project is part of a joint venture with Energy Northwest of Richland, Wash., and X-energy of Greenbelt, Md., to build four 80-megawatt modular reactors at the Department of Energy’s Hanford Site by 2027.
NuScale is also working with a major regional utility, Utah Associated Municipal Power Systems, to deploy a power plant in 2029.