NuScale, the only company whose small modular reactor design has earned certification from the U.S. Nuclear Regulatory Commission, entered an agreement in 2015 between the Department of Energy and the Utah Associated Municipal Power Systems. The agreement, called the , or CFPP, initially envisioned using 12 of NuScale鈥檚 reactors to build a 720-megawatt carbon-free power plant at the Department of Energy鈥檚 Idaho National Laboratory.
Utah Associated Municipal Power Systems provides electricity to 16 western states. promise more affordable construction and operating costs and are safer than traditional nuclear power plants. Their design makes any potential emergencies easier to contain than conventional reactors.
The project鈥檚 collapse was precipitated by rising interest rates and inflationary pressures 鈥渢hat have not been seen for more than 40 years,鈥� according to NuScale. Inflation caused the prices of several component parts to increase by as much as 106% in some cases.
As a result, the project鈥檚 cost had increased 75%, to $9.3 billion, and the cost of power had gone up by 50%. Some communities also pulled out of commitments to buy power from the new reactors, which are set to go operational in 2030.
NuScale CEO John Hopkins called the company鈥檚 work with Carbon Free Power Project and the Department of Energy a and said the company is still committed to bringing small modular reactors to U.S. and international customers.
鈥淭his decision is very disappointing given the years of pioneering hard work,鈥� said Mason Baker, chief executive of Utah Administrative Power Systems. 鈥淲e have learned many invaluable lessons during the development of the CFPP that we will carry forward in future development work.鈥�
Although the company said it is exploring deals around the world, the Idaho project would have been NuScale鈥檚 first commercial deployment. Wednesday鈥檚 announcement called into question the company鈥檚 overall viability. By Thursday afternoon, the company鈥檚 stock was down 33% from the day prior.
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