The archive · Climate & Energy · Strategic decision · 2007–2026
NuScale bet licensing reform sells SMRs: first US cert, dead flagship, no contract
First US SMR certification and the 2024 ADVANCE Act were NuScale's moat; the flagship project died and $1.9B cash still buys no binding contract
NuScale Power
What the business is
NuScale designs and sells small modular nuclear reactors: factory-built 77 MWe power modules that utilities and data centers can cluster into plants of up to 924 MWe.
Starting capital：~$380M gross from its May 2022 SPAC listing; ~$1.9B cash and investments at June 30, 2026; DOE provided $575M+ in support since 2014
How it started
NuScale was founded in 2007 in Portland, Oregon, and spent 15 years funding design and licensing work with venture money and $575M+ in Department of Energy support. It listed on NYSE via a SPAC merger in May 2022 (~$380M gross). Its bet: small, factory-built reactors would clear NRC licensing faster and cheaper than gigawatt plants, letting a startup sell nuclear power where big utilities could not.
What happened
The NRC certified the 50 MWe design in January 2023 — the first SMR design ever cleared in the US — and approved the uprated 77 MWe design in May 2025. But the flagship UAMPS Carbon Free Power Project at Idaho National Laboratory was terminated in November 2023 for lack of subscriptions. The ADVANCE Act, signed July 9, 2024, cut NRC fees for advanced-reactor applicants and required faster, more predictable licensing reviews — a direct tailwind. NuScale then signed data-center deals: Standard Power (Oct 2023, ~1.8 GW planned for Ohio and Pennsylvania), an exclusive ENTRA1 partnership, and a September 2025 TVA/ENTRA1 6 GW program.
How it ended up
As of August 2026 NuScale is pre-revenue and still standing: Q2 2026 net loss $47.5M on $75,000 revenue, ~$1.9B cash, and no binding PPA or final investment decision on its anchor projects (ENTRA1, TVA, Romania's RoPower); shares traded near $9.48.
Background
NuScale Power is a Portland, Oregon company founded in 2007 that designs small modular nuclear reactors (SMRs) — factory-built 77 MWe pressurized-water modules that can be clustered into plants of up to 924 MWe. Its founding bet was that small, standardized reactors would get through US licensing faster and cheaper than gigawatt-scale plants, letting a startup sell nuclear power to utilities, industrials and, later, data centers.
The bet scored on the regulatory side: in January 2023 the Nuclear Regulatory Commission issued the first US design certification for an SMR, and in May 2025 it approved NuScale's uprated 77 MWe design. The ADVANCE Act, signed July 9, 2024, cut NRC fees for advanced-reactor applicants and required faster, more predictable licensing reviews — a direct tailwind. But the commercial side lagged: the flagship UAMPS Carbon Free Power Project in Idaho was terminated in November 2023 for lack of subscriptions, leaving NuScale to chase data-center demand through Standard Power, ENTRA1 and TVA.
As of August 2026 NuScale is still pre-revenue. It reported a Q2 2026 net loss of $47.5M on $75,000 of revenue, ended the quarter with roughly $1.9B in cash, and had no binding power purchase agreement or final investment decision on its anchor projects. The stock traded near $9.48, down about a third in 2026 — a valuation that rests on converting regulatory approval into signed contracts.
What has to be true
- NRC certification was a genuine moat: NuScale was the first and for years the only SMR design certified in the US, standing apart from rivals with no approved design.
- The ADVANCE Act directly cut fees and mandated faster, predictable licensing for advanced reactors, turning government intent into a measurable business tailwind.
- AI data-center power demand created a new, creditworthy buyer class after the utility channel failed.
- Regulatory wins did not create revenue: without enough subscriptions to cover costs, certification alone could not save the flagship project or produce a single binding contract.
What can be applied
Regulatory approval is optionality, not revenue: a first-of-kind certification and a supportive law created opportunity, but the business still needed a buyer at a price that clears.
Aftermath
As of August 2026 NuScale holds ~$1.9B in cash and investments, has its 77 MWe design approved, long-lead forgings in production at Doosan, fuel design work at Framatome, and active licensing across ENTRA1 (Utah), the TVA program and Romania's RoPower — but no signed PPA or final investment decision, a trailing 12-month loss near $415.7M, and shareholder litigation over ENTRA1 disclosure. The company frames deployment readiness, not revenue, as its near-term goal.
Sources
- NRC Certifies First U.S. Small Modular Reactor Design
- Utah Associated Municipal Power Systems (UAMPS) and NuScale Power Agree to Terminate the Carbon Free Power Project (CFPP)
- NRC Implementation of the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy Act of 2024
- NRC Approves NuScale Power's Uprated Small Modular Reactor Design
- NuScale Power Corporation Form 8-K (Q2 2026 results)
- NuScale posts $47.5m loss as SMR rollout awaits contracts
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