Nucor Corporation has committed to a USD15 million private investment in public equity (PIPE) in small modular reactor (SMR) developer NuScale Power. The investment increases total committed PIPE investment to USD236 million.

The Nucor Steel Berkeley mill in Huger, South Carolina (Image: Nucor)

Nucor said it has entered into an agreement to fund NuScale via a private placement in the special purpose acquisition company, Spring Valley Acquisition Corporation, which intends to merge with NuScale.

The transaction is expected to close in the second quarter of 2022 and is subject to approval by Spring Valley's shareholders as well as other customary closing conditions.

With this additional USD15 million PIPE commitment from Nucor, NuScale and Spring Valley have secured USD55 million in additional PIPE funding since announcing their initial business combination agreement in December 2021.

In March, SailingStone Capital Partners committed to a USD10 million PIPE investment, following the February announcement of the satisfaction of the previously disclosed contingency with respect to USD30 million of the PIPE commitment from South Korea's Samsung C&T Corporation which ensured that, pending satisfaction of remaining closing conditions, the minimum cash threshold for the business combination can be met.

Including Fluor's USD110 million secondary sale to the Japan Bank for International Cooperation, announced earlier this week, USD165 million of NuScale equity has been secured in PIPE commitments or sold by Fluor at approximately USD10 per share since the announcement in December.

The USD236 million in total PIPE proceeds, along with more than USD232 million in Spring Valley's trust account subject to redemptions by its shareholders, will be used to "bolster and accelerate the commercialisation" of NuScale's SMR technology.

"The world's need for a diverse mix of clean energy has never been more apparent, and we are thrilled to welcome Nucor and look forward to exploring potential opportunities with utilities across Nucor's steelmaking footprint," said NuScale President and CEO John Hopkins. "NuScale continues to build an impressive and diverse group of investors and strategic partners who recognise the compelling value of our carbon-free energy solution and our leading position in the global SMR race."

"Sustainability is driving the business decisions of leading companies around the world," said Nucor President and CEO Leon Topalian. "As America's largest steel producer and a significant energy consumer, we are looking for safe and reliable sources of power generation that are consistent with our sustainability goals. The continued development of small modular nuclear reactors is critical to ensure our nation has carbon-free, baseload power, which is why we are making this investment in NuScale."

Researched and written by World Nuclear News