Nucor invests in small modular nuclear reactor company

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Steel giant Nucor Corp. pledged $15 million for the planned merger of NuScale Power LLC, a developer of small modular nuclear reactors, with a blank check company.

NuScale executives have agreed to buy $15 million worth of shares in Spring Valley Acquisition Corp. through a private placement that will help fund the commercialization of NuScale’s technologies. NuScale and Spring Valley agreed in December to partner in a deal valuing the combined company at $1.9 billion. Other backers of the project include Samsung C&T Corp., Segra Capital Management and Pearl Energy. NuScale is a subsidiary of engineering and construction conglomerate Fluor Corp., which will remain majority owner of the entity once the Spring Valley transaction closes.

“We are looking for safe and reliable power generation sources that are consistent with our sustainability goals,” said Leon Topalian, president and CEO of Nucor, in a statement. “Continued development of small modular nuclear reactors is essential to ensure our country has a basic carbon-free diet, which is why we are making this investment.”

The NuScale team has signed 20 memorandums of understanding with energy companies and other organizations to build their small carbon-free reactors around the world from the end of this decade. By 2030, they expect the company, which today employs around 500 people, to have revenues of more than $10 billion and generate at least $3 billion in EBITDA.

Nucor shares (symbol: NUDE) edged higher to near $147 in April 7 morning trade. They have risen nearly 50% in the past six months, bringing the company’s market capitalization to around $40 billion.

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