Doosan makes additional investment in NuScale

20 July 2021

South Korea's Doosan Heavy Industries & Construction (DHIC) has agreed to make an additional USD60 million investment in NuScale Power to continue to support deployment of its small modular reactor (SMR). Including the latest investment, DHIC and its financial investors have invested more than USD100 million in NuScale. DHIC and NuScale have also agreed to expand cooperation to the field of hydrogen production and desalination using SMRs.

An agreement for additional equity investment was signed today at Bundang Doosan Tower in Seoul by NuScale Power Chairman and CEO John Hopkins and DHIC Chairman and CEO Geewon Park (Image: DHIC)

In July 2019, DHIC signed the 'business collaboration agreement' with NuScale Power for supply of NuScale Power Modules and other equipment. Doosan also signed the 'unit purchase agreement' through which it made a USD44 million cash equity investment in NuScale with Korean financial investors. The signing of the agreements followed a Memorandum of Understanding between the two companies in April 2019 for strategic cooperation to support deployment of the NuScale Power Module worldwide.

According to that business collaboration agreement, DHIC reviewed the NuScale Power Module's design for manufacturability. In addition, DHIC will manufacture and supply key components for the first plant based on the design. NuScale's first customer, Utah Associated Municipal Power Systems (UAMPS), is planning a 12-module SMR plant in Idaho. Construction is scheduled to start in 2025, with the first module expected to begin operation in 2029.

Doosan is currently performing manufacturing trial tests and plans to start the forging fabrication for UAMPS reactor modules next year. Doosan said it is accelerating the development of state-of-the-art SMR manufacturing technology to be "fully prepared for the upcoming SMR era", and plans to expand its business to meet global SMR demand in the future.

"Marking the next step in the strategic relationship between NuScale and DHIC, this is the fourth investment from DHIC and its financial partners in a two-year span," NuScale noted. Including the latest investment of USD60 million, DHIC and its financial investors have invested more than USD100 million in NuScale, "further demonstrating their confidence in the promising potential and viability of NuScale's technology to transform the clean energy sector."

"NuScale is delighted to welcome Doosan's continuing investment in and commitment to commercialising America's first small modular reactor," said NuScale Power Chairman and CEO John Hopkins. "Doosan's expertise in heavy manufacturing will be invaluable as we move forward with the construction of our first NuScale Power Plant at the Idaho National Laboratory in just a few years, and we are thankful for their ongoing support and endorsement of our ground-breaking technology."

"Through this additional investment, Doosan and NuScale Power will further solidify their strategic cooperative relationship," said DHIC Chairman and CEO Geewon Park. "The large scope of supply secured from NuScale Power will also offer momentum and new opportunities to the domestic supply chain."

The NuScale Power Module is a pressurised water reactor with all the components for steam generation and heat exchange incorporated into a single integrated unit. The unit can generate 77 MWe (gross) per module, or about 924 MWe for a 12-module power plant. NuScale will also offer options for smaller four-module and six-module plant sizes.

Researched and written by World Nuclear News