Nucor eyes nuclear power for EAF mills

Charlotte, North Carolina-based Nucor Corp. has announced it is investing $15 million in NuScale Power LLC, which it calls a developer of small modular reactor (SMR) nuclear plants.

Nucor, which has boasted of the low-carbon footprint of its scrap-fed electric arc furnace (EAF) business model, is pointing to further decarbonization targets as the reason for the investment.

“Sustainability is driving the business decisions of leading companies around the world,” says 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,”

Nucor has entered into an agreement to fund NuScale via a private placement in a special purpose acquisition company (SPAC) called Spring Valley Acquisition Corp. The steel producer says it intends to merge that SPAC with NuScale. “This capital will support the path to commercialization of NuScale’s proprietary and innovative SMR technology, the NuScale Power Module,” the firm states.

The steelmaker describes SMRs as nuclear reactors that can operate independently or in tandem with other modules to produce carbon-free electric power on a smaller scale and at a lower cost than traditional nuclear power. The Nuclear Regulatory Commission has approved NuScale's technology, representing a significant milestone that no other SMR developer has achieved, Nucor says.

The company says it also has “supported the development of solar and wind energy projects” through three power purchase agreements it has entered into in the past two years, which will help enable the construction of 600 megawatts of renewable power generation.

The investment in NuScale complements these efforts, says the firm, since an “effective electric grid requires both baseload and intermittent power sources, which is why both nuclear and renewable energy must be part of the solution to achieve carbon reduction while maintaining grid reliability.”

Nucor operates several EAF steel mills in the U.S. as well as downstream steel products facilities and scrap processing yards in the U.S., Canada and Mexico.