NuScale’s Reactors Seen as Hedge Against Future Climate Rules

NuScale Power LLC and the Energy Department are vigorously promoting the company’s small modular nuclear reactor concept both in the U.S. and abroad as the beginning of a second act for nuclear energy.

Some of the roughly 29 electric utilities expressing early interest in the design say small modular reactors, or SMRs, remain a promising hedge against carbon emissions regulations even in an era of deregulation. Other utilities see regulatory challenges and costs associated with the reactors as extremely high.

The risk involved in investing in NuScale’s still-untested reactor is “scary,” but the technology has a clear place on ...