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NuScale’s ENTRA1 Pact Puts SMR Deployment Plan in Focus, Raises Financing Questions

BNP Paribas estimates the arrangement could require about $6 billion from NuScale over 15 years.

Overview

  • NuScale has the only NRC-certified small modular reactor and is pitching factory-built modules for data centers, mining, and chipmaking.
  • The company agreed to supply its power modules to ENTRA1 plants, with its technology selected for ENTRA1’s program tied to the Tennessee Valley Authority.
  • CEO John Hopkins described the ENTRA1 deal as a “historic agreement” and the largest SMR deployment program in the United States.
  • The structure is designed to spare utilities from taking on nuclear construction debt but shifts financing pressure to ENTRA1 and NuScale, which could dilute shareholders.
  • BNP Paribas projects NuScale could pay about $6 billion over 15 years under the agreement, while the stock recently traded near $21 after highs around $57 last year.