News Releases 2022
Apr. 05, 2022
The JAPAN BANK for INTERNATIONAL COOPERATION invests in NuScale Power, LLC
TOKYO, Japan - JGC Holdings Corporation (Chairman and CEO Masayuki Sato, "JGC HD") and IHI Corporation (President and CEO Hiroshi Ide, "IHI") are pleased to announce that the Japan Bank for International Cooperation ("JBIC") has invested approximately US $110 million in NuScale Power, LLC ("NuScale") via a special purpose company established by JGC HD and IHI in 2021 when both companies invested in Nuscale.
As renewable energy becomes a primary energy source with the rapid advancement of decarbonization globally, it remains a challenge to ensure a stable supply of electricity by renewables alone due to their susceptibility to the natural environment. SMR plants are expected to fulfill a key role as a complement to renewables by providing reliable, dispatchable, zero-emissions generation.
JGC HD and IHI expect SMR technology to contribute to the realization of a carbon-free society along with hydrogen and renewable energy. Furthermore, NuScale's SMR technology is the only SMR that has received U.S. Nuclear Regulatory Commission Design Approval in recognition of its safety in August 2020. We invested in NuScale with the aim of collaborating on SMR plant construction projects, maintaining our technology at the forefront, and continuing to fulfill our responsibilities as leading members of the nuclear industry.
The Government of Japan stated in its "6th Strategic Energy Plan", approved by the Cabinet in October 2021, that it will promote research, development and demonstration of SMR technology through international collaboration. In addition, in the U.S.-Japan Joint Leaders' Statement released in April 2021, the "Japan-U.S. Climate Partnership on Ambition, Decarbonization, and Clean Energy" and the "U.S.-Japan Competitiveness and Resilience (CoRe) Partnership" were announced. In these partnerships, advanced nuclear power, including SMR technology, is set as one of the areas of cooperation between the two countries. In line with the energy policy of the Government of Japan and the direction of cooperation between the Japanese and US governments, JGC HD and IHI welcome JBIC's investment.
Going forward, JGC HD and IHI will collaborate with NuScale and Fluor on the deployment of certain NuScale Power Plants, including NuScale's first SMR plant construction project.