Equity Participation in NuScale Power, LLC
Promoting Research, Development and Demonstration of Small Modular Reactor through International Cooperation
Region: North America
April 4, 2022
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi), today, acquired issued shares in NuScale Power, LLC (NuScale) from Fluor Corporation. Participation in the investment in NuScale will be made via a special purpose company established by JGC Holdings Corporation (JGC) and IHI Corporation (IHI) to make equity investments in NuScale. JBIC's investment of approximately USD110 million is made through its Special Operations Account*1.
NuScale was established in 2007 with technology developed by Oregon State University in the United States. The research and development of the small modular reactor (SMR) by NuScale is progressing towards its commercialization, with the U.S. Nuclear Regulatory Commission's technical review on its Design Certification Application completed in August 2020. JGC and IHI are planning to be involved in the commercialization process of the SMR by investing in NuScale, and JBIC made the equity investment to support their plan, thereby contributing toward maintaining and improving the international competitiveness of the Japanese nuclear power industry.
In the Sixth Strategic Energy Plan approved by the Cabinet Office in October 2021, the Government of Japan confirmed its position to promote international cooperative efforts for the research, development and demonstration of SMR technologies, and the equity participation by JBIC is based on that policy of the Government of Japan. In addition, in the U.S.-Japan Joint Leaders' Statement released in April 2021, the U.S.-Japan Climate Partnership and a new Competitiveness and Resilience (CoRe) Partnership were announced with the recognition of advanced nuclear power as one of the fields of cooperation between the two countries. The equity participation is also in line with the direction of the cooperation of the two governments.
As Japan's policy-based financial institution, JBIC will continue to support the Government of Japan in its policy operation and to assist Japanese companies in the overseas expansion of their businesses by drawing on its various financial facilities and programs including its equity participation function for structuring projects, and by performing its risk-assuming function.