NuScale Power, a utility firm specializing in small modular reactor technology, is laying off 28% of its workforce, amounting to 154 full-time employees, in a cost-saving effort expected to yield $50-60 million in annualized savings. Despite receiving design certification for its SMR technology, NuScale has faced financial challenges and recently terminated a project in partnership with a Utah power company. The company's shares fell over 3% following the announcement, and it expects to incur a $3 million charge related to severance costs in the first quarter.
The Carbon Free Power Project, which aimed to deliver nuclear power as a base load energy source to Utah municipalities, has been terminated. The project, pursued by the Utah Associated Municipal Power Systems (UAMPS) and NuScale, failed to secure enough subscriptions to be financially viable. Despite bipartisan support and regulatory approval, the project faced uncertainties in permitting and costs, leading subscribers to drop out. UAMPS will now explore alternative base load power sources such as wind, solar, geothermal, and natural gas. However, UAMPS remains open to nuclear power in the long term, given their relationship with NuScale.
Westinghouse has unveiled plans for a small modular reactor, the AP300, which will generate virtually emissions-free electricity and could replace coal plants or power water desalinization and other industries. The reactor will be a smaller version of its AP1000 reactor and will not use special fuels or liquid metal coolants. Westinghouse plans to start constructing the reactor by 2030 and have it running by 2033. Small modular reactors are meant to fit new applications such as replacing shut coal plants and being located in more remote communities.
