US NewsScale SMR Project Halted... What About Korean Investors Like Doosan?

Utah Project Halted Due to Cost Issues
NuScale Shares Plunge Over 20%
South Korean Government: "Not a Technical Issue... Impact Limited"

NewsScale Power SMR Power Plant Rendering

The Utah power plant project by NuScale Power, which had attracted attention as the first small modular reactor (SMR) project in the United States, has been halted due to cost issues. Major domestic companies such as Doosan Enerbility and Samsung C&T are also participating in this project, so the impact is expected to be inevitable.

On the 8th (local time), NuScale Power and the Utah Associated Municipal Power Systems (UAMPS) announced that they had mutually agreed to suspend the Carbon-Free Power Project (CFPP).

In this regard, Bloomberg reported that the project was halted due to soaring costs. NuScale Power had estimated in 2021 that it could supply power at $58 per megawatt (MW). However, this cost recently rose to $89 per MW. As the unit price increased significantly, many regions affiliated with UAMPS reportedly withdrew from the CFPP project. The statement by both parties on the day that “the project was suspended due to failure to secure sufficient buyers” is in this context. UAMPS includes 50 small local governments in Utah.

Nuclear power plants generate electricity by turning turbines with steam produced during nuclear fission. Small modular reactors integrate core nuclear power plant equipment such as reactors, steam generators, coolant pumps, and pressurizers into modular units. Typically, reactors with an output scale of 300 MW or less are classified as small reactors.

Small modular reactors have attracted attention as next-generation nuclear power plants due to their advantages of superior safety and economic efficiency compared to conventional nuclear power plants, and relatively flexible site selection. In the U.S., besides NuScale, companies such as Holtec, TerraPower, and X-Energy are promoting SMR projects. NuScale’s Utah CFPP project was the first SMR approved in the U.S., with a target operation date of 2029.

Many domestic companies are also participating in the U.S. SMR projects. Doosan Enerbility, Samsung C&T, and GS have been actively involved in NuScale’s SMR project. The Energy Transition Forum identified that domestic companies including Doosan, DS Private Equity, IBK Securities, and BHI hold about 33.4 million shares of NuScale stock. This accounts for 64% of NuScale’s Class A common stock.

Additionally, SK has invested in TerraPower, and Hyundai Construction is participating in Holtec’s SMR project. TerraPower is also well known as a company invested in by Bill Gates, the founder of Microsoft (MS).

NuScale’s stock price plunged more than 20% following the announcement of the CFPP project suspension. The Korean government and domestic companies explained that the impact is limited. A Doosan Enerbility official stated, “Many projects NuScale is pursuing, such as in Romania, are proceeding normally,” and added, “There is no problem with the business viability of small modular reactors themselves.”

An official from the Ministry of Trade, Industry and Energy explained, “The project was suspended for economic reasons, not technical issues, and since this is a localized issue limited to some areas in the U.S., the impact on Korean companies is expected to be limited.”

Meanwhile, in July, the Ministry of Trade, Industry and Energy formed the ‘Public-Private SMR Alliance’ together with 11 public institutions and 31 private companies.