NuScale: SMR Interest Grows, but Project Complexity Weighs on Deals

The July enactment of the Advanced Nuclear for Clean Energy, or ADVANCE, Act and the US Department of Energy’s June announcement of up to $900 million in funding for early small modular reactor (SMR) deployments are positive developments for NuScale’s business, CEO John Hopkins said on the company’s earnings call.

These developments came amid increased interest from hyperscale data center operators and manufacturers seeking reliable, emissions-free electricity, Hopkins said.

But project complexity and risk aversion among potential off-takers have dogged NuScale’s efforts to close revenue-generating customer agreements, Hopkins said during the call’s Q&A session.

Actions taken by NuScale to reduce operating costs and improve efficiency, including an approximate 28% reduction in its workforce earlier this year, helped the company trim operating losses in Q2 2024, the company said Thursday (August 8).

NuScale reported an operating loss of $41.9 million in the quarter ended June 30, down from an operating loss of $56.1 million in Q2 2023.

The rapid growth of data centers in support of artificial intelligence is the “most exciting source of new demand” for clean, firm electricity, Hopkins said on the call. 

In the investor presentation accompanying its earnings release, NuScale cited a May projection by the Electric Power Research Institute that data centers could account for up to 9.1% of US electricity demand by 2030 from an estimated 4% today.

Related:Going Nuclear: A Guide to SMRs and Nuclear-Powered Data Centers

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