IRVING, Texas--(BUSINESS WIRE)--Fluor Corporation (NYSE: FLR) announced today that the company has committed to making an investment exceeding $30 million in NuScale Power LLC., an Oregon-based small modular reactor (SMR) technology company. The announcement was made today in Washington D.C. at the National Press Club by Fluor and NuScale executives with key members of the U.S. House of Representatives along with industry and regulatory leaders in attendance.
As part of its investment, Fluor has purchased the company’s shares that had previously been in U.S. Securities & Exchange Commission (SEC) receivership and has become NuScale’s majority shareholder. Going forward, NuScale will continue to operate as an independent company. Additionally, Fluor and NuScale have entered into a separate contractual arrangement whereby Fluor will provide certain services to NuScale as well as have exclusive rights to provide engineering and construction services for future NuScale SMR facilities.
NuScale Power is an Oregon corporation with more than 70 employees that is commercializing a small, modular reactor (SMR) technology. The initial concept for NuScale’s highly innovative, inherently safe SMR technology was developed from 2000-2003 at Oregon State University with funding provided by the U.S. Department of Energy. With the support of Fluor, NuScale expects to bring its technology to market in a timely manner.
“Fluor's history of accomplishment and success in the nuclear industry combined with NuScale's innovative and safe nuclear technology will provide our customers with a very competitive option,” said John Hopkins, Fluor Corporation’s group executive for Corporate Development and New Ventures. “Today’s new energy marketplace is dynamic and requires power generation diversification and technological innovation for continued success. Our investment is a synergistic fit for our EPC business and positions us well for future new-build energy needs. At the same time, we view this investment as an excellent financial deal with great upside growth potential.”
Fluor has a strong 60-plus-year history in the nuclear new-build market—having designed, built or provided construction support for 20 units in the United States. Pairing Fluor’s world class engineering, procurement, construction (EPC) expertise with NuScale’s safe and economical small modular reactor (SMR) technology, positions both companies as global leaders in the global new-build nuclear market.
“Fluor’s investment in NuScale coupled with our contractual relationship enables NuScale to move ahead in a stronger position than ever with the backing of a major player in the global nuclear energy industry," said Paul Lorenzini, chief executive officer of NuScale. "Importantly, Fluor's confidence in NuScale's technology after its extensive due diligence sends a signal that together, we intend to be the leaders in bringing small, modular reactors to market."
"This collaboration is vital to utilities that are exploring nuclear energy as an option to diversify their future generation portfolio," said Bill Fehrman, president and CEO, MidAmerican Energy Company, based in Des Moines, Iowa. "This combined effort between Fluor and NuScale is another strong signal that small modular reactor technology will be a viable alternative for the next generation of nuclear energy deployment."
MidAmerican Energy is one of 11 major utilities in the U.S. and Canada serving on NuScale Power's customer advisory board. The board is conferring with NuScale on ways the company's technology can best meet the needs of electric utilities in an increasingly dynamic energy environment.
About NuScale Power
NuScale Power has designed a nuclear steam supply system and nuclear power plant that offers the benefits of nuclear power but takes away the issues presented by installing large capacity. The NuScale design is for a modular, scalable Light Water Reactor (LWR) nuclear power plant system. A nuclear power plant using NuScale’s technology is comprised of individual NSSS modules. Each produces 45 megawatts with its own combined containment vessel and reactor system, and its own designated turbine-generator set. A power plant can include as many as 12 NuScale integral PWR modules to produce as much as 540 megawatts. NuScale power plants are scalable – additional modules are added as customer demand for electricity increases and far more cost-effective than traditional large scale nuclear facilities. These multi-module plants are highly reliable – one unit can be taken out of service for refueling or maintenance, or a new unit added, without affecting the operation of the others.
About Fluor Corporation
Fluor Corporation (NYSE: FLR) designs, builds and maintains many of the world's most challenging and complex projects. Through its global network of offices on six continents, the company provides comprehensive capabilities and world-class expertise in the fields of engineering, procurement, construction, commissioning, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 200 company and had revenue of $20.8 billion in 2010. For more information, visit www.fluor.com.