Nuclear startup NuScale finds a savior in Fluor


The world of mini-nuclear reactor technology has gotten a big backer. Fluor (s FLR) said Thursday it has bought a majority stake in NuScale Power and will help bring the startup’s technology to market.

Fluor, which engineers and builds nuclear power plants, reportedly spent $3.5 million for the majority stake and plans to invest a total of $30 million into NuScale. The $30 million deal first surfaced in news reports last month, and part of that $30 million already has gone into helping NuScale continue its operation, said Brian Merchon, a spokesman for Fluor.

The investment is a big deal for Oregon-based NuScale as well as the modular nuclear reactor industry. These reactors are designed to have smaller generation capacities and to allow customers to add them as they see fit over time. A big challenge, in addition to making sure the reactors can generate power safely over time, is to demonstrate that these smaller reactors can produce power cheaply (check out our list of nuclear startups).

If successful, modular nuclear reactors could be built on corporate properties to power office buildings and industrial operations. Utilities also are keenly interested in the idea of building out a centralized nuclear power plant over time, Merchon said.

NuScale’s technology initially came from Oregon State University, which licensed it to NuScale in 2007. The reactor design involves using nuclear fuel to generate thermal energy to heat water and create steam, which is then piped to a turbine generator to produce electricity. Each NuScale system is made up of a reactor, turbine-generator and other related equipment, and it has 45 megawatts of generation capacity.

Besides Fluor, NuScale also has lined up investors including CMEA. The startup ran into financial trouble earlier this year when its primary backer, Michael Kenwood Group, was under investigation by the Securities and Exchange Commission for fraud. Michael Kenwood’s owner, Francisco Illarramendi, pleaded guilty in March to running a ponzi scheme. As a result, a court-appointed receiver gained control of the majority of NuScale’s shares. NuScale had to suspend most of its work and furlough dozens of workers in March this year, reported Sustainable Business Oregon.

Texas-based Fluor, which generated $20.8 billion in sales last year, wants to build power plants with NuScale’s technology. But getting there will likely take a while. NuScale will need certification of its technology from the U.S. Nuclear Regulatory Commission, and that certification process tends to be a multi-year process that costs millions of dollars. NuScale previously indicated a plan to file for certification by 2012. It also will need an operating license from the commission. NuScale is looking at bringing its first commercial nuclear reactors online in 2020, according to its website.

Fluor sees Babcock & Wilcox, along with engineering and construction firm Bechtel, as chief rivals in the modular nuclear space. Backcock has its own modular nuclear technology called mPower.

Image courtesy of NuScale Power 



Dan and George, the author of this article made an error. NuScale has no plans to build plants at corporate sites such as office buildings and industrial operations. Nor does B&W or any other credible company. The idea is to build utility-scale power plants with the same type of siting and security as is used today for conventional nuclear power plants. The innovation is that NuScale plants will be built in a modular fashion, adding capacity as load grows, as opposed to the conventional idea of building and financing a huge plant all at one time.


I agree with Dan, this technology will never get of the ground. Corporations can not afford the negative side effects of using nuclear power on there premises. High insurance premiums and poor human morale at the office will reduce there profit margin at the end of the day. Brain power run corporations not ignorance! This is a bad investment!


Great idea, let’s put a nuclear reactor in the basement you’d have to chain the employees to their desks to prevent them fleeing!. This just won’t fly, besides contamination and proliferation risks, I mean what is the fallout radius for a reactor like this? This is a dirty bomb just waiting to go off! Solar @$1.25 today will be $0.25 cents a watt by the time this technology is approved in 10 years if it ever is!

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