NuScale Power Corporation (SMR) Earnings Call Transcript & Summary

[Presentation] Thank you, and good morning, everyone. We are thrilled to welcome our in-person guests and also those joining by webcast to NuScale's 2023 Analyst Day. My name is Scott Kozak, and I'm the Director of Investor Relations. I'm excited for today's event and the opportunity to share our story. This morning, we posted a set of supplemental slides on our Investor Relations website as reflected in the safe harbor on Slide 2 and the information set forth in the presentation and discussed during the course of our remarks and the subsequent Q&A session include forward-looking statements, which reflect our current views of existing trends and are subject to a variety of risks and uncertainties. You can find a discussion of our risk factors, which could potentially contribute to such differences in our SEC filings on Form S-1 and Form 10-Q. Here's the agenda we will cover today. Speakers will include John Hopkins, President and CEO; Dr. José Reyes, Co-Founder and Chief Technology Officer; Maria Korsnick, President and CEO of NEI; Clayton Scott, Chief Commercial Officer; Tom Mundy, President, Voyager Services and Delivery; Carl Fisher, Chief Operating Officer; Steve Burns, former NRC Chairman and Commissioner; Carrie Fosaaen, Vice President, Regulatory Affairs; Ramsey Hamady, Chief Financial Officer. So as you see, in addition to hearing from us, we've invited some prestigious guests to add their perspective on business development in the SMR industry as well as the regulatory environment for nuclear. For those joining us in person, we will conclude the day with the demonstration of our technology. For those joining by webcast, we would like to host you for a site tour in Corvallis, Oregon, so that you can see this demonstration for yourself and visit our other facilities. I'd also encourage you to visit our E2 centers, which simulate new scale control rooms and are located at several universities across the U.S. and also in Romania. With that, I'll now turn the stage over to John Hopkins, NuScale's President and CEO to discuss our vision and strategy. John?

Appreciate it. I like that video and the fact to we've been strongly promote the fact that advanced nuclear and renewables can work together. So you just saw that solar plant is right adjacent to where our small modular reactor plant is going to be. So during periods of time when the sun is not shining, we can complement and work with that solar plant. So -- and I think we're going to see more and more of that as time goes on. Today, I and other senior leaders will share how far we have come as a company and discuss the future of getting small modular reactors or SMRs deployed around the world to power the clean -- global clean energy transition. Our leadership status in the SMR space has earned us a seat at the table with global regulators to streamline and harmonize regulatory processes. With that, I'll kick off the presentation and provide an overview of our vision and our strategy. I'll start by providing some key messages that you're going to hear consistently today. NuScale's revolutionary SMR technology provides a big start and first mover advantage, importantly and sustainable. We are a long-term committed SMR leader. NuScale is preparing to help solve the need for energy security and power the energy transition. The need is massive, and it continues to grow. Demand for new dispatch for low carbon and zero carbon generation as well as applications for process each steam for industrial applications is unprecedented. Our competitive advantages are significant and sustainable. Not only are we the only SMR design certified by the U.S. Nuclear Regulatory Commission, or NRC, we are also very cost competitive. NuScale employees an asset-light model and has established a comprehensive manufactory and fuel supply infrastructure. In fact, we are already pouring steel to boost the forgings for our first 6 modules. I visited Doosan Enterbility and our Korean supply chain partner to see these long lead items firsthand being produced today right now. NuScale's ability to leverage our mature design to help produce prefab materials and factories and ship to site rather than assembling in the field is significant from a cost and a timing perspective. We will demonstrate today that NuScale is not a venture capital story, but rather a growth capital story. And we are not a start-up. We are in project delivery and currently in manufacturing. As we move from R&D to product delivery, NuScale has significantly derisked our modules. In contrast with SMR peers remain in the R&D phase, NuScale is deployable and poised to take advantage of our first mover. In fact, we are commercializing our technology with committed customers right now. Beyond NuScale, there are currently no other publicly traded SMR technology companies. As a result, part of our job is to help educate the investment community. I want to thank Wall Street. There was a major announcement today that I want to steal the thunder of our Chief Commercial Officer with Standard Power. Well, they just came out and said in 2 states, we're going to have two 12 module NuScale power plants, working with our partner and our developer that we have an exclusive arrangement ENTRA1 Energy, and we'll get in more on that. This is -- for our industry, this is a massive move because that customer is oriented to working with data centers and what's going to be a huge potential in AI. And I want to be crystal clear on this point, NuScale is a technology provider and an OEM focused on delivering NuScale power modules for energy plants. In other words, NuScale has advanced our technology from R&D to commercialization. The technology we developed, the NuScale Power module is a critical component of a small modular reactor or SMR energy plant. Now that you know who we are, I want to be equally clear on what we are not? NuScale is not a builder or a developer of energy infrastructure projects. We do not finance energy projects. We do not operate energy plans, and we do not generate revenue from power sales. We understand the strengths and where we are, and we need the expertise and capabilities of others. We are delighted to have established a strategic partnership with our developer ENTRA1 Energy. For the past year, in fact, we announced last year the relationship has been transformational for NuScale and is critical to our commercialization. This plant that we just got Standard Power became because we have a developer and again, we'll talk at length about that in a minute. This is what this industry needs. We can provide the technology. We have the capacity to execute. Somebody like a developer has to be there to help bring the total package together. ENTRA1 is an independent energy production company with 45 years of experience, owning, financing and developing a significant projects in the global energy and infrastructure section. I have known the CEO for many, many years. We used to have a joint pitch and partnership in a company I used to belong to. They are an American group with a strong and ready pipeline of energy projects around the world. ENTRA1 provides customized plant development, ownership and operating structures that derisks the project and meet each energy consumers unique needs. So when you think about NuScale's emerging new business development pipeline, our customer will be ENTRA1. The energy consumer or end user, whether it be an industrial company, a technology business or data centers to support or he does another permutation, that's ENTRA1 customer. ENTRA1 is our exclusive global strategic partner for commercialization and development of energy plants with NuScale SMR technology inside. This partnership provides end users with a one-stop shop solution to meet growing consumer demand for safe, reliable 24/7 carbon-free baseload energy. To use more of an example, think of ENTRA1 like a computer system such as Dell, Hewlett-Packard and NuScale is the Intel processor inside powering the computer. That's what we are. And we are going to stay focused on commercializing technology to let ENTRA1 do what they do best; development, financing, ownership and more to support energy infrastructure projects. I'm pleased to reiterate that we have a new customer, as I just mentioned, in Standard Power. We, again, are leveraging our ENTRA1 partnership to serve that project with our technology. You'll hear more details in the recent business development in the financial implications from our CEO, Ramsey Hamady and Clayton, our Head of BD. This slide is put in perspective the size of the opportunity for SMRs in electricity market, estimated at 232 gigawatts by 2050. And keep in mind, this has not even taken into account other applications like hydrogen, ammonia, desalinization, which represents additional significant market potential. This is only electricity. On top of climate and economic development, energy security has become paramount in many countries around the world. I spoke at COP26, the UN conference on climate. In COP27, talking to representatives from sub-Sahara Africa, Arabian Peninsula, Eastern Europe. The groundswell that's building in these places and elsewhere for advanced nuclear is incredible and customer engagement and our technology continues to advance. Nuclear adoption and acceptance are growing quickly in communities all over the world. They need the power and they need the jobs. Jobs, jobs, very important to many of these countries who are into car. If you could have segue from coal to another source. Where is the jobs? We aren't content just to be a first mover. We expect to be a market leader over the long term. NuScale has invested $1.6 billion plus to mature and derisk our power modules. A lot of that capital went to the upfront derisking NetPower module, which Dr. Reyes will show you. NuScale is currently manufacturing, as I said, the first set of modules, and we have what's called and I learn on the street, [ Big Kit ]. And we have poured metal for 6 modules at Doosan, and it's pretty inspiring to go out there and see that happen. This will generate significant savings for our customers to derisk their projects and provide confidence in how they allocate site-specific resources. So what's next on the horizon? Nuclear will play an important role in the pursuit of a carbon-free energy transition in tandem with renewables, as I showed you with RoPower. Deep decarbonization will require emission-free baseload generation that can be easily integrated into a renewables heavy system. Just look to Texas, for example, of a state with energy imbalance. Heavily built in the West part of the state, they've got the T&D. We could easily set up plants and help implement and complement renewables in that state. In fact, we're talking to that state. Our technology can provide baseload power to need of flexibility to offset the intermittence of renewable power, as I just mentioned. And NuScale's SMR technology can help avoid costly overbuilding of wind turbines, solar panels, batteries, in long distance transmission lines. We also have the benefit of monetizing exciting alternative projects such as clean energy, such as ammonia for agriculture, working with oil refiners and really important energy requirements for decellularization. All the while, we are able to provide a highly reliable power source to critical public and private infrastructure such as medical facilities, defense installations, digital data centers and AI. I don't think any of us have an appreciation how much energy is going to be required with AI. The overall global needs for carbon-free capacity additions for electricity is like 7,000-plus gigawatts. Next, I'll touch on some upside opportunities. Achieving net zero targets requires a massive build-out of clean power resources that touch numerous aspects of the economy beyond electricity market, such as process industries and transportation each of which produces a similar amount of emissions. I've seen in recent research, NuScale's technology enables industrial decarbonization across a broader stretch of applications for efficiently providing high temperature, high-pressure carbon-free steam. Therefore, industrial petrochemical and oil refiners and more have become a key customer target. And we have a couple of major distinctives that José will get into of why we're attractive to those industry? One is having gone through the rigor of the Nuclear Regulatory Commission, our emergency plan in zone truly is at site boundary. It took us 7 years to get to that point. 7 years of going through to prove that unlike most new -- or all nuclear power plants that have a 10-mile evacuation zone, ours can literally be at site boundary. We also don't need to be connected to the grid for safety. That's the first in the industry. The other thing that goes on is that governments support has been key for us, and it's key for any new industry. It's an element in the development of our industry and at NuScale's technology specifically. I spend a lot of time on the hill talking with the senators and representatives on both sides of the aisle. So I can tell you from personal experience that NuScale support is bicameral, bipartisan and long standing. While the fiscal year 2024 appropriations process remains ongoing in Congress, we are encouraged by activity on Capitol Hill so far, with positive developments in both the House and the Senate that demonstrates financial support, to not only NuScale, but other advanced SMRs to help power the energy transition. In addition, we continue to benefit from strong advocacy by the Department of State and Department of Energy. But let me be very frank. The nuclear industry needs success stories. We need U.S. technologies and projects to succeed and traction and headway is being made and are being made. It stands right now. No other SMR technologies have submitted to design certification application of the NRC, but it's coming. There's going to be a wave here in the near term with other American technologies will enter into the design process. And if we're going to meet decarbonization and clean energy goals, and if we're going to have reliability in our energy source, and if we want energy security, advanced nuclear has to be in the mix. I believe renewables is a great success story, but many of us don't believe they can do it just on the backs for renewables alone. The Inflation Reduction Act has helped advance nuclear level, leveled the playing field in renewables somewhat. It's not a direct impact on us as a technology provider, but it certainly supports power customers and consumers. End users are taking notice, as they have understood that they have to be in construction by 2032 or risk not being able to take advantage of all the available IRA tax credits. Beyond just utilities, there's a major industrials that need clean, reliable 24 energy sources as well. This includes clusters of industrial production of facilities that share fence lines with 1 another. If you go to Baytown, Texas or Geismar, Louisiana, there's multiple process plants, they're in close proximity. If you have the capacity to go and provide them, build, own, operate, build on transfer, give them the energy requirements they need for either process heat or ammonia or hydro production, it's huge. It's another new market, that's emerging that's really starting to come on strong because they have an interest. But they don't necessarily want to own or operate the plant, but they're open to entering into long-term power purchase agreements to support the construction and development of SMR plants. And Glen, Clayton will discuss relationships, that we have with ENTRA1 how they're making that happen. We're also well positioned for coal plant repurposing trends and have already begun executing on our first opportunity, as you saw with Real Power and soon with Standard Power that we just announced this morning. Regarding our first committed customer, UAMPS in the carbon-free power project, we have made substantial progress toward preparing our technology for deployment, maturing our design and developing our supply chain. We still receive an excellent support from the government. But despite our hard work, CFPP, the carbon-free power project has become a very challenging project. We believe we've been on a path to achieving a price target for the project, but as a result of delays outside of our and our suppliers' control, work is getting behind schedule. We are talking with the customer, and we are talking with the government and performing internal analysis to find the appropriate path forward. Importantly, the critical work completed in good faith as part of the CFPP has advanced our NuScale technology at the point that utilities, governments industrials can rely on a proven SMR technology that has regulatory approval is in active production and is ready for commercial deployment, positioning NuScale far ahead of the competition. We'll keep you up to the date on this topic. But our primary focus today will be on our new customers, future plans and measures we are taking to control our costs and manage our cash. Key focus areas for the company from the top down. I'm proud of the team we have assembled. We have gone from R&D and now into delivery. And it's a marked difference because now we're at the point of actually producing plants. We have brought in new expense -- experience and skill sets that position us for success as we enter our next phase of development. I'm very excited to -- you'll be very excited also to hear from the experience base of this team that we put together, and José Reyes, who is the developer and founded this tremendous technology. Next, I'll provide an overview of our long-term strategy for profitable growth. We are accelerating our technology and supply chain readiness through comprehensive manufacturing trials and other measures. We are focused on deploying our SMR modules, which are best in class, and we believe more advanced than others. And we're going to be expanding into new markets, applications and capabilities. While government support is important, it is our sustainable competitive advantages that fuel our leadership. Our strong SMR competitive position is enabled by our technology and IP, operational and regulatory excellence, deep nuclear experience, mature and derisk partner and supplier ecosystems. The mission and safety-first culture and I mentioned as well as our management team, many of whom you'll get a chance to meet today. These advantages will support our ability to generate long-term value for all our stakeholders. With that, I'd like to turn it over now to Co-Founder and Chief Technology Officer, Dr. José Reyes. José ?

Well, thank you. It's a real pleasure to be here. Whenever we're at Wall Street, we just feel the excitement, the ability to create not just new energy, but a new path forward in terms of investment, in terms of a delivery of product. So we're glad to share all the exciting news that we have with you today. I'm José Reyes, I'm the Chief Technology Officer and Co-Founder of NuScale Power, A little bit about my background. I started my career with the Nuclear Regulatory Commission, almost 10 years with the NRC, followed by 30 years of working with the Oregon State University as a professor, and Head of the Nuclear Engineering Department, and then co-founded NuScale in 2007, worked as a passive safety system expert for the United Nations, International Atomic Energy Agency, and I'm a member of the National Academy of Engineering. So I'm really excited to be able to share with you the technology that we've developed. A lot of innovation happening within the company. I started the company with 3 base patents. Now I have 180 patents, either granted or pending in 20 countries. The company as a whole has 686 patents. So a lot of exciting work that's going on at NuScale. So let me just move on here. Our mission -- our mission is to provide advanced nuclear power, to provide electricity, clean water and heat to improve the quality of life for people around the world. And that's our mission, and that motivates each 1 of our team members. We want to improve the quality of life for people around the world. So that's our mission statement. We strongly believe in progressing people, our plant and prosperity. Doing this through social equity, through environmental stewardship and economic development. And we are looking at some key global issues that we would like to help solve. And as a community and nuclear -- working with renewables and working with a lot of other energy technologies, we believe these problems can be solved. Decarbonization, providing power at large commercial scales, complementing solar and wind by providing grid stability. You heard John talk about repurposing coal-fired plants, the ability to do that because of our small site boundary, providing power for the emerging technologies like AI, and of course, the current issue of energy security. So we are motivated by our mission. It drives us in terms of our innovation and has driven us. We've incorporated safety, simplicity, a very high level of reliability into our design. And these things are important differentiators from traditional nuclear renewables and even our other SMR competitors. So we are poised to move forward in a very large market. We are creating new opportunities in new markets, and you'll hear more about that in a moment with regards to steam production and other areas. So this is our technology. And I am here to tell you that we've done it, okay? I've been wanting to say this for a long time. We have done it. We have designed and are fabricating the first U.S. small modular reactors. Okay. Thank you. This, of course, has been a dream of mine for -- I don't want to get a emotional here. This has been a dream of mine for many, many years. And so I'm so excited to be part of this great adventure. And I'll try to keep a steady pace here. So it's amazing. This is a 77-megawatt electric module. It's all factory fabricated. We've added lots of features in terms of safety that make it unique and that we are able to be located near end users, site boundary emergency planning zone, process heat for industrial processes, fully factory fabricated, reduced operation and maintenance. As you see on the right there, that's 1 of our reactor buildings, a 12-module plant like we might -- we will build at the standard 6 modules on 1 side, 6 on the other. That's a 924-megawatt capacity system. It's scalable. You can add modules as modules are needed. So we're excited about that. We are leveraging a tremendous amount of past experience, 67 years of civilian and naval operation of light water reactors. And that's what's given us a significant advantage in terms of our licensing, in terms of our computer code development, our database is a very highly detailed database. So we leveraged -- that was our starting point. We went from there, and we spent another $1.6 billion to derisk this design and $150 million just on state-of-the-art testing and demonstrations. And so you're most welcome to come visit us in Corvallis to see our test facilities. But that was big because each 1 of those tests had to be audited by the Nuclear Regulatory Commission. So we have a very strong record of successful performance of these types of test facilities. So a little bit about our -- what we've done in terms of our design and what's different about our design. We added a lot of functionality. So this is something that a lot of folks haven't thought about in the past, but this is something that makes us very different. So first is in terms of our safety, and I'll talk more about safety in just a moment. But we offer what we call a fully passive safety system. We're not using power electric -- we don't need any AC or DC power for safety. And in fact, for our design, the reactors will shut themselves down without any operator action without any AC or DC power, and they remain cooled for an unlimited period of time without the need to add water. So that's the first in commercial nuclear power. And it was a significant foundational part of our design that allows us to do a lot of other things, which I'll describe, but everything is underpinned by our safety. Worst case conditions, we act to shut down without operator action, without AC or DC power, without the need to add water. So that's a key point. So we're the only SMR that's been approved by the NRC with this type of capability. It is significantly smaller. John mentioned our emergency planning zone, took us 7 years to get to that point. But we've also added Black Start and Island Mode capability. And you'll see some of that displayed here later today on our E2 center. So meaning by Black Start, you can start the plant from 1 small module powering up the entire plant, picking up all the house loads. First responder power. As we look at the increase in frequency of severe weather events, we start seeing that these -- our plants should be hardened, okay? We need to have hardened plants that will withstand these types of events. But how do you restore the grid? Well, the way in which we are able to restore the grid is that we don't have to be connected to the grid for safety. So we can go into our island mode, we can be at hot operational conditions. And as soon as we receive notice that portions of the grid have been restored, we can immediately begin dispatching power. So we're the first to respond in those events to help restore the grid as opposed to current nuclear today, which is by law, required to be the last -- I mean, to respond or they're the first to get power to get to their safety system. So it's a very different model. So first responder power is unique to our design. And of course, we are looking at the highly reliable power multi-modules, and we'll talk more about some of the -- or John mentioned some of the mission-critical facilities that we're looking at. This key criteria, I think, is quite important. The idea that we are able to check all these boxes because this is something that's needed for the modern grid, okay? Baseload capable? Yes, we can do that. Zero emission? We can do that and effectively deployable at scale. I think that's something that's been missing for nuclear. The ability to just add modules as modules are needed. So having this zero emission baseload power is key, but also being able to do it in an affordable manner and in a scalable manner. So just a brief comparison how it compares to a large plant. So, we announced today 2 large nuclear plants, scalable plants, they're each about 924 megawatts each. So that's comparable and now put to the large-scale nuclear power, which is typically 1,000 megawatts. We're a much smaller footprint with the site boundary emergency planning zone, and because of our size and our ability to be located closer to the end user, I'll be talking a bit about some of the applications that go with that. So the fact that we have -- we can have a site boundary emergency planning zone allows us to be closer to the end users of different products like chemical productions and things like that, hydrogen. We've got this new level of safety. We're looking at a 3-year build for our plants from first pour of concrete. And we have what I call staggered refueling, the ability to refuel 1 module, while the rest of the modules continue to produce power. So we never shut down the entire plant. I hope you're writing down questions because I love questions. It's a little bit about the competition. Of course, you've heard from John regarding the SMRs, -- there are -- there is a wave of SMRs coming, and we're excited about that, too. But in terms of our differentiators, we are light water reactor technology, so it's very well known and not just by globally in terms of all the reactors that are operating today, but also in terms of the regulatory framework, it really has been built for light and water reactors. So a lot of interest there. Our fuel supply, I think that's an important one. We use commercially available, low enriched uranium. And we're not using the high assay low enriched uranium, that's currently needed for some of the advanced designs. That could become a bottleneck for many of these advanced designs. We don't use that fuel. We have commercial contracts with the fuel vendors who will provide us that fuel. And many, many vendors actually provide that fuel today. So that's not a bottleneck for us. Of course, in licensing space, we've made significant advancements with the regulator, getting a design certification. We've submitted our standard design approval for our upgraded power for the 77-megawatt version, and that's well on its way. In terms of coping period, I think we've set the standard. This was kind of a goal of ours from the beginning to be able to say we no longer want to be a risk for the environment. We want to be able to have a design, which has an unlimited coping period. We don't need to worry about having to add water long term for the cooling of our reactors. So many of the designs, and I think all of the advanced designs now have included that has a design goal. And I think that's a very worthy goal. So what do we mean by the site boundary emergency planning zone? So it does really provide a significant advantage. As we talk to many of the coal-fired plant operators, many of them are aging plants. And so they want to retire those plants. We see an opportunity to repurpose those plants. We use some of the transmission, some of the water, some of the infrastructure to put a NuScale plant. So you can see that little dot in the middle, that would be us. So in terms of our boundary. And this is -- if you look at a 10-mile radius, that's what would be required for a typical large light water reactor to give you a sense of scale there. So this took a lot of work. We started interacting with the regulator 7 years ago to talk about the methodology that you would use to calculate the size of that emergency planning zone. And that's a big deal, because even though the NRC set at this point now because of all the efforts have come up with emergency preparedness rule for SMRs and advanced reactors, you still have to have a methodology to do that calculation to present to the NRC. That methodology has to be approved that took us 7 years to get it approved for us. And our methodology is proprietary. So it's a big lift. It's a big lift for the SMRs that are coming behind us because that took a lot of work to demonstrate that you meet all the regulatory requirements that you would meet at 10-mile radius, you meet that at 200 meters to 300 meters at your fence. It's a big, big lift, and we were able to do it. So this is a really important feature, but it's an enabler. And it enables us to do a lot of different things. Back in 2014, we started looking at integrated energy systems. So we've been looking at this for many, many years, almost 10 years now. And how we can better utilize our plant effectively for other markets? And part of it was driven again by the need for innovation and solving some of these global problems. I'll start with water because I like to talk about that. Many parts of the world are undergoing droughts or don't have enough water. One of our modules, coupled to a reverse osmosis system can produce 77 million gallons of clean water per day. That's one. Four modules would be enough for about 3 million to 4 million people, just to give you a sense of what could be done with this type of a system. Hydrogen production, 1 module can produce about 50 metric tons of hydrogen per day, if you use the high-temperature solid oxide electrolysis cell systems. So that's a big deal. Coal-fired plant replacements, we already talked about that, but all these things require power. And that's, again, one of the enablers because of our small footprint, our site boundary, emergency planning zone, what that allows us to do is to be closer to the end user. And I'm going to talk about process heat in just a moment and get me all excited. So we need to be closer to the end user because they don't necessarily want to be within your emergency planning zone. They like to be outside that fence, right? So that's a big deal. So that's an enabler for us. And it's allowing us to start talking to many, many different markets and opportunities. And we haven't even included that yet in terms of our discussions with profitability and things like that. So here it is, hooray. This is something that's relatively new. Back in March of this year, I attended the meeting, a DOE meeting in Houston, where we unveiled this. We've been doing some studies on this and the idea of producing process heat for lots of different chemical processes. So what this shows on this chart, you can see that the bars there, synthetic fuels, ammonia. Now our plan typically produces steam, about 800,000 pounds per hour of steam at somewhere around just under 300 degrees C. So we can address some of these processes for the chemical plants, but we saw the need to go to higher temperatures and higher pressures. We teamed up with a compressor vendor, a commercial compressor vendor. And we found that we can take our steam, compress it and heat it because you're doing pressure work on this team to about 500 degrees C, and we can still produce about 500,000 pounds of steam per hour, very, very competitive and well within the requirements for many of these chemical processes. So now we've extended the output of our steam temperatures and pressures so that we can support these types of industries. Since March of this year, 19 oil and gas companies, steel companies and chemical companies have contacted me. They want to know about this. This is a real need for them, and they need to start looking at how they're going to decarbonize their processes. Well, they are seriously looking at this. We are now also investigating the opportunities to go to the higher temperatures. What's unique about this is now we're saying that light water reactors can be part of the solution in terms of these high-temperature systems. You don't only have to have a high temperature reactor, you can take any light water reactor. And with our technology coupled to these high-pressure compression systems, you can actually become part of the solution for decarbonizing a very, very large market. So folks, I'm really excited about this. So right now, we're looking at -- I mentioned about 500 degrees C, 1,500 pounds per square inch. We're looking to go to higher temperatures. We currently have a project with Shell Global, looking at hydrogen production. We just got announced with -- for a DOE gain proposal accepted to do a study on integrating our system with high compression, high temperature with a large chemical plant. And of course, this is all because of the -- we started with that foundational aspect of safety, having a smaller footprint, having a site boundary EPZ. So just to sum up, we're dedicated to our mission. We really want to improve the quality of life for people around the world. In order to do that, we had to incorporate unparalleled levels of safety so that we can have a smaller footprint, be located closer to the end users in different markets. That's created very strong differentiators from traditional nuclear, renewables and potential SMRs. And we really are well positioned for the application of our technology to entire new markets. So with that, I'm going to end my portion here, looking forward to your questions. And I'll turn it over to Maria Korsnick, the CEO of NEI.

Well, great. Thank you very much. Always great to hear you, Dr. Reyes. And I'll just put in a plug. He is also a University of Maryland Grad. So happy to be here today and a special thanks to NuScale for inviting me. I'm Maria Korsnick, President and CEO of the Nuclear Energy Institute. We represent more than 340 different organizations in an industry that directly employs over 100,000 people throughout the United States. Our members range from advanced nuclear companies to developers to utility companies. And actually, we represent the entire supply chain for the nuclear industry. And today, I want to talk to you about the incredible advances that we're making in advanced nuclear technology and really the enormous opportunity that we have and companies like NuScale are showing and creating. I'm going to get right down to it. This is a once in a generation moment for nuclear. It really has emerged as the key to meeting energy security and climate goals as well as rapidly increasing the demand for -- meeting the demand for electricity around the world. When I talk to the investment community about nuclear, I often get 1 question, what's driving all of this? And the best answer that I can give really is a single word, and that's demand. You saw it in some of the slides that John and José both presented. But really broadly, the demand is customers that are really demanding this affordable, reliable clean energy. And then you have utilities that are demanding these clean sources that can power those communities and they want that power at 24/7, 365. And then you have businesses that are demanding versatile technology that can fuel their operations while reducing their carbon footprint. And why do they want to reduce their carbon footprint? Because that's what's being demanded of them. They want to show that the product that they're making is green. Well, then the power that they're using to make that product needs to be green. Now you have elected leaders that are demanding this reliable and affordable options for that clean energy future, and they want to make sure they're getting that clean energy future with good paying jobs. So when you add all of that up, these demands really all point to the expansion of nuclear energy. And honestly, there's no credible decarbonization scenario that does not include nuclear energy. So you got utilities, you've got policymakers, you've got private industry, and they're all going towards the sort of next generation of nuclear commitments for new projects are absolutely expanding. We'll talk about that. It's going across state lines, international borders and across broad sectors of the economy. So at the same time that we're demonstrating this advanced technology that's going to completely reshape the energy landscape. And NuScale is 1 example. And as they've mentioned, there are other technologies that are coming down this pipeline, but NuScale small modular reactors, which you're going to hear even more about today, really cutting edge because some of the things that you've already heard this morning that they've advanced quite a bit in the licensing process. So there's really no more question about whether these versatile, reliable, clean energy reactors are going to get built. I would really argue now it's really a matter of how fast can we build them and who's going to lead the way? And really, this is no time to hesitate. Over the past several years, we're really sort of doubling down has been kind of the chosen course of the largest energy stakeholders in the world. The United States government is doubling down. And let's talk about that. There's a good reason for that because nuclear is the most reliable, affordable carbon-free source at our disposal. It's also the key to meeting our clean energy commitments and decarbonizing the entire economy. So as you just saw in Dr. Reyes's slides, it's not just about electricity. It's also about high-temperature steam. It's also about hydrogen. And the nuclear reactors, they can do that. And actually, they can do it -- electricity during the day and you can do hydrogen at night. You can do the high temperature steam. There's a versatility that's kind of built in to these designs. And the federal government has created some unprecedented incentives to really take advantage of nuclear's versatility and to get these advanced reactors built, and it's really reinforced that nuclear is an indispensable asset. And it's really at the center of the government's vision for clean energy. And it should be at the centerpiece of investment portfolios. Support starts at the White House. In 2021, The Biden administration declared the next 4 years, a can't miss opportunity. U.S. Energy Secretary Granholm pictured here has called nuclear a critical part of our decarbonization equation. And at the other end of Pennsylvania Avenue, a bipartisan majority and Congress really recognizes that the path to an affordable clean energy future runs right through nuclear. And they've backed it up with unprecedented levels of funding. I'll mention just a few. Over the last several years, the United States enacted historic infrastructure legislation, these laws will preserve the existing nuclear generation, which supplies nearly half of America's clean energy, and it also will accelerate the deployment of technology like NuScale's. The 2021 infrastructure bill had $6 billion in a civil nuclear credit program and it also directed $2.5 billion towards the advanced reactor demonstrations. And just last year, Congress added enormous new incentives for nuclear energy. The nuclear projects are now eligible for a clean energy production tax credit. They're also included in a clean electricity investment credit for zero emission facilities. So this type of support is really unprecedented in a hyper partisan political climate that we live in today. It's really a rare area of agreement. Nuclear energy had support under the Biden administration, and it also had support under the Trump administration. So it really should leave no question about the government's view. Nuclear is vital, to clean energy grid and to our economic future. And that commitment and that perspective is why you can expect support for nuclear to last Congress to Congress, and administration to administration. And investors can also count on incredible support at the state level. State governments are realizing that advanced nuclear can absolutely satisfy their energy needs and help invigorate their economies. And they're not just reconsidering nuclear, they're really looking at what incentives they can offer and how can they attract nuclear to their state. And that's why we've seen more than 200 nuclear-related bills this year alone in states across our country. And in years past, gosh, if we would have been lucky to even see a dozen nuclear-related bills. I want to give you a feeling for the inflection point that we're finding ourselves at today. You have nonnuclear states like North and South Dakota, they've passed bills to study small modular reactors. Wyoming is determining how they can use nuclear to transform their state's energy economy. Indiana enacted a landmark law to pave the way for small modular reactors. California took advantage of the civil nuclear credit program that I mentioned to keep its Diablo Canyon plant online. West Virginia lifted its moratorium. They had a moratorium to build nuclear and they lifted that so that they're able to build nuclear now in West Virginia. Virginia established a new energy R&D fund that's going to help support nuclear workforce development and site selection. So these states are really recognizing that advanced reactors will be local economic engines and they're going to create quality secure jobs. You heard that in what John Hopkins said, it's not just about creating that energy, but let's create some great jobs to go with that energy. You're closing down those coal plants. You don't need to lose those jobs. You don't need to lose those communities. We're going to bridge that and we can use that talent and build and operate these new reactors. And they're going to do all of that without emitting pollutants that today, some of the way that we produce energy actually impacts people's health. So the investment world is really recognizing that this commitment to next-generation nuclear that it's real, and through things like you're going to hear today realize that it's not just here in the United States, it's around the world. Just a couple of examples. Pelican Energy Partners pivoted from its fossil fuel portfolio. And they announced a new fund strategy that was dedicated to the nuclear industry. MSCI listed nuclear as an ESG trend to follow in 2023. And I understand that BlackRock is considering a nuclear themed investment security. The CEO of Brookfield Assets recently cited an emphasis on energy and security and as a reason to invest in nuclear. Mark Carney, who heads Brookfield's Transition Fund, said that energy transition does not work without nuclear energy. So investment is really following this trend in part because nuclear technology promises to decarbonize the entire economy. And again, NuScale is really leading the industry in these applications. Nucor, the nation's oldest and largest steelmaker is investing millions in NuScale's efforts to build their SMR technology as they consider using SMRs to power their steel production. Again, why? Because then that steel will be green steel. And that's not the only industry that's exploring advanced nuclear. Data centers are looking at nuclear to run their power-intensive servers. Dow chemical is looking at nuclear to power some manufacturing down in Texas. So these projects don't even touch on 1 of the biggest applications of nuclear that you heard from Dr. Reyes, and that's hydrogen production. NuScale is partnering with Shell on that hydrogen production concept and the Department of Energy is supporting other hydrogen projects that are in the planning phases now. So what does this all have to do? And how is it that we're getting all of this demand? We're really talking about demand, not for 1 or 2 reactors. This pie is really big. So it's hundreds, I'll be honest, if not thousands of reactors. And so let me give you an example of that. We recently pulled our Chief Nuclear officers. Those are folks that are operating today's reactors. And we said, what are you guys looking as you look ahead? And together, they're expecting to add more than 100 gigawatts of new nuclear to the grid, the bulk of that coming online by 2050. And just for perspective, we have about 100 gigawatts of nuclear today. So that's talking about doubling the amount of nuclear. Then the Department of Energy came out with their report, their advanced reactor lift-off report, and they see an even greater demand, right? They believe the U.S. nuclear capacity has the potential to triple to around 300 gigawatts by 2050, all driven by advanced nuclear technologies. And we're already seeing movement from this, from conversations to commitments. Let's just look at last year. The Tennessee Valley Authority said they could use 20 or more SMRs. Duke Energy in their integrated resource plan that they recently released showed a need for a similar number. Dominion submitted their own plan in Virginia that included between 6 and 18 small modular reactors. So, when you look out at the number of builds on the horizon, nuclear is just 1 of the best bets that there is. And demand isn't limited to the United States. Demand is really growing around the world because leaders realize that energy security is national security. And if you look over at Europe, I think it's an unfortunate poignant example of that with the unfortunate aggression of Russia on Ukraine and our hearts go out to the Ukrainians, the idea of weaponizing energy and the impact and effect that, that's having when Russia shut off the gas supply to Europe. It really makes people take stock of how am I getting that energy and who am I counting on to get that energy? So as we look ahead, for example, NuScale is moving ahead with their project in Romania. The Biden administration, you saw the clip earlier announced along with other nations, partners, up to $275 million in support for deploying a NuScale small modular reactor, but elsewhere in Europe. KGHM, which is Europe's largest mining company is looking to deploy NuScale technology in Poland. That country has also placed orders for 3 advanced reactors with more in the works. Some of the most fervent support that we have for nuclear has come from Ukraine, a country that really knows the importance of energy and knows nuclear energy very well, and they now know the importance of that energy security, unfortunately, better than anyone. And as they look to their future and when it's time to rebuild in Ukraine, that country plans to add 9 new large reactors as a centerpiece of its energy plan. And they also announced plans to develop small modular reactors, which I know NuScale is joining. We have countries across Africa like Kenya and Ghana that are also joining the charge. In Ghana, the U.S. recently announced support to establish a regional training hub for small modular reactors. And in fact, I'm headed there later this month with a delegation from the Department of Energy. And U.S. companies are also establishing exciting new partnerships in Asia. In Indonesia, for example, the United States has agreed to support SMR deployment using NuScale technology and the pilot includes targeted support from the Department of State as well as a funding from the U.S. Trade and Development Agency. But global demand isn't only about new markets, we're witnessing really a sea change in opinion in countries where nuclear capacity had previously stalled. In the past year, South Korea has announced plans for new nuclear construction and license renewals or extending the life of the plants they have. India, where demand for electricity is skyrocketing, raised targets for their nuclear generation capacity and identified the development of SMRs with foreign technology partners as a priority for them. And earlier this year, I attended a G7 event where the United States, the United Kingdom, Canada, Japan and France all agreed to work together to strengthen the fuel supply chain and bolster nuclear energy. I was just in Vienna, speaking with more international partners on how they can strengthen their nuclear presence, and I'll be back there again next week. The U.K.'s latest energy strategy includes adding 24 gigawatts of nuclear by 2050 enough to power roughly 18 million homes. And in June, the United States and the U.K. announced a framework for a 21st century economic partnership, which includes the deployment of advanced and peaceful nuclear technologies. Canada has established tax credits. Interestingly, very similar to some of the pro nuclear incentives that we did here in the United States. It's been Interesting to watch as countries are sort of one-upping each other, trying to ensure that they're getting in the conversation. Those tax credits are already driving demand for both large and small reactors in Canada. Japan is extending and replacing its current fleet and committing to next-generation reactors as part of their clean energy mix. That's a complete reversal from the country's decision to completely shut down and phase out nuclear just a little more than a decade ago. France has also reversed its policy on reducing nuclear capacity. And now they've introduced a plan to build 6 reactors. And I think you've seen President Emmanuel Macron, went so far as to say it's now a nuclear renaissance and the government is considering even more new builds. Sweden just updated its 100% renewable policy to a 100% fossil-free policy, which will enable new reactor construction. And their decision as part of a broader trend of policies that recognize and fully value nuclear's clean energy production. In fact, just this week, we had a Swedish delegation in our offices, and it included Minister Ebba Busch, and she is the Minister of Energy and also the Deputy Prime Minister. And they really pointed out that they want more nuclear energy because from a scientific standpoint, that was the best way to achieve Sweden's goals. It's a conclusion that others around the world are also coming to. And I don't want to pit nuclear against renewables. It's not 1 or the other. It's and, right? It's a partnership between nuclear and wind and solar that's going to give us the best solution, right, as we decarbonize. And these countries know that. That by making nuclear part of the centerpiece of those energy systems that they can get their emissions cut, they can strengthen their energy independence, and they can even save money. And when we say energy security and energy independence, right, what are we talking about? Because when you put the energy in these cores, right? You're good to go for 18 months or 24 months, some designs even much longer. And so you're not counting on a pipeline, you're not counting on a delivery to keep that energy going. And so that's what we're talking about when we talk energy security, you know you have it. It's right there. So carbon emission credits today, if you look in the European Union, are trading at nearly $100 a metric ton, a carbon price that's that high will absolutely increase the cost to gas-fired electricity pretty significantly, which makes new nuclear even more attractive. In fact, power prices in Europe are often twice what we have here in the United States. And that's in large part because of that carbon cost. This creates really an incredibly strong export opportunity for NuScale and for other vendors that are providing this carbon-free technology. So there's no question that the global demand is going to last. We're seeing it firsthand at NEI. It's just in the last 6 months, we've had international delegation visits in our office, and we host trade missions. We've had 18 different countries come through our offices just in the last 6 months alone. And in comparison, I would say, last year and in years past, we might have had 3 or 4 international visits in trade missions. And so clearly, again, we're at an inflection point. The only question is how much that the U.S. industry and investors are going to benefit from this demand? What do I mean by that? Well, for U.S. companies, the opportunity is very clear and massive. According to 1 estimate, revenues for U.S. companies alone could be $1.9 trillion over the next 30 years. $1.9 trillion that the U.S. could benefit by having this U.S. technology exported to other countries. So U.S. companies are technology leaders. They are absolutely poised to take advantage. There are, again, dozens of SMR projects ongoing and NuScale has received the first design cert from the U.S. Nuclear Regulatory Commission. And so that paves the way for approval in other countries. NuScale has deliberately developed a supply chain, as John mentioned, through some of their global partnerships. And their growth and the growth of the industry as a whole, I think, really offers value that's very obvious. And so while this investment opportunity, it's undeniable, U.S. leadership also matters, and it matters for geopolitical reasons. The world is really hungry for nuclear energy as we shared. And so make no mistakes, someone is going to build it. The question is who is that going to be? So if the U.S. industry doesn't build it, there are some state-owned enterprises, for example, Russia and China, and you can see right here on this map, right, where any place that you see something colored in, so whether it's green or whether it's blue, it's saying whether that's China or Russia or both, these are places that Russia and China have hard and soft MOUs, infrastructure development and reactors contracted, proposed or under construction. So make no mistake about it, right? There are countries that are very interested in deciding how they can be a part of and control energy in other people's countries. So when nations pursue nuclear power, think about what that does, right? Their choice of partner really matters. And it matters a great deal because nuclear development forges deep, economic and long-term relationships. These relationships can last for 100 years, if not more, right? You're going to build it 5, 6 years, you're going to operate it 60, 80, maybe even longer, you're going to decommission it. It's a long-term strategic relationship. So simply put, I would argue the world is safer and more secure when nations who share the highest standards are the preferred partners. So we not only export our equipment, we export our standards along with our technology. Russia and China don't play by the same rules. They have no qualms about weaponizing energy production. Russia has already showed that through their invasion of Ukraine. I think they've made that abundantly clear. So seeding leadership and nuclear exports to Russia and China would be a strategic disaster for the United States, from a safety and security perspective. So there is a deep bipartisan commitment to preventing that outcome. But, we can't lose ground, right? We have to act. Russia and China are in the process of signing agreements and starting builds around the world. Right now, 22 exported Russian reactors are under construction, including in Egypt, in Hungary, in Turkey and in Iran. So it's quite clear that the world is better off when U.S. companies are the go-to partner for nuclear development and private investment in American nuclear technology is a huge part of the solution. So by investing now and establishing our U.S. companies and as suppliers in these key markets, you can really open the door to exponentially greater opportunity down the road. And you can be confident that those investments will be aligning with the priorities of the U.S. government. So historic demand, it's here for a reason. We need to build that clean, reliable, affordable energy and we need to help us decarbonize quickly. So thanks to NuScale and innovators across the industry. We have this technology to get the job done, and there's no question that the more we build, the better we're going to get. Today, investors are in a unique position to capitalize on this demand and the world is really building this clean energy system and next-generation nuclear is going to be at its core. The market opportunities are nearly endless, by doubling down now on nuclear, you can help shape the industry that's going to help shape the world's energy future. Thank you so much, and I'm happy to take any questions if you have them.

Maria, would you prefer to stand or sit. I'll put a chair.

No, I'm happy to stand if there's any questions, bright -- lights are a little bit bright here. So.

[indiscernible] from [indiscernible]. How much financial support will need to come from the U.S. compared to other developed nations to scale SMRs globally?

Well, yes. It's a tough question to answer, because the designs are all very different and unique. As you heard from Dr. Reyes as earlier, some of these designs are going to use light water fuel, if you will, low enriched fuel. Some are going to use that high-assay low-enriched fuel. But I do think that -- and if you go back to that DOE report that I mentioned, the advanced reactor lift-off, they're pretty clear that we need to build 4 or 5 of the same thing to really come down that cost curve. And from the first time you build it, to the fourth or the fifth time, they're really expecting a significant reduction in cost and in schedule. So I would challenge us, the thing that we have not been doing as a country is building nuclear very much. And so I'd say this new phase is really an opportunity to do that. And the more we do it, the better we're going to get. So again, really hard question to answer in terms of it's going to be x dollars. It's going to be design dependent. But it behoves us as a country and as the government to continue this investment, because as you can see, this is simply a launching off point in terms of how many of these things that will need to be built, not only here in the United States, but around the world.

Another one I have from online. What are some of the most attractive market opportunities abroad in terms of countries fast following the U.S. on SMR deployment?

Yes. Well, it's interesting. Nuclear is hard to be first, but it's like everybody wants to be second and third. And so you're really seeing that not only here in the United States, but abroad honestly, I'd challenge you to maybe just read the headlines just off the top of my head. We've talked about France, saying that they want to go ahead and build the United Kingdom, Romania, Poland. We were just in a trade mission to the Czech Republic. They have an open nuclear tender right now, which should be closing in this month for them to begin their down select process for which design. I'm headed to Ghana, as I mentioned in my talk, any of those countries on the eastern part of Europe, for obvious reasons, many of them, I'll pick Finland as a great example. They were already building a Russian reactor. They have a partially built Russian reactor. And after what they saw happen in Ukraine, they said, no. I'll leave this partially built reactor. I don't want to do business with you anymore. Who was in my office this week, Finland. So already, you have these countries saying, "I do want to still build nuclear, but I would like a different partner. And very much these countries are looking to the United States. What do they want to know? Are we serious, okay? Are you guys serious because just a couple of years ago, I remember that you were shutting plants down, so do I want to do business with you, because I want to build that long-term relationship with somebody that's going to stay in the business. That's why things you're hearing like with NuScale is so important, because it's demonstrating we are serious. We are going to get in this business. It's why what we're seeing is investment from our U.S. government is so important because it says, look, they are serious. And it's not just going to be this administration. I have confidence that it's going to also be the next administration. I would say, honestly, almost with the exception of Germany, I don't think that there's any country over in Europe that isn't taking a strong look at nuclear. If they have nuclear now, they're extending those plants and wanting to build. That's what the Sweden message was in our offices earlier this week. And there's also countries that don't even have nuclear. Poland is a great example, and they're willing to jump in because Poland is a great example. They're really heavily dependent on coal, and they know they have to change and they want to change, but they also want to maintain those jobs and they want to be clean and bingo, right? You come right to nuclear. And I just talked about Europe, but Asia and Africa as well, countries are looking to nuclear. It's actually amazing. And I think John mentioned in his comments earlier, almost we can't comprehend how big this pie is and it's because there's so many things simultaneously changing. People talk about our U.S. electricity and you look at a grid that we have today. And they say, when we're going to go through this decarbonization, the first thing you do is electrify. Now they're talking about a grid that's 2, 3, maybe even 4x the size of the grid that we have today, right? That's an almost incomprehensible amount of energy that's going to be needed, but that's just electricity. And honestly, electricity is the easiest thing to decarbonize, right? Now you get into the steam systems and you get into some of these manufacturing that need more than just electricity, some of these steel companies or the chemical companies, they need that much higher energy source, and that's where the hydrogen is going to come in or the high-temperature steam is going to come in. And again, that's additional demand, right, additional demand. And when you need that high thermal steam, et cetera, that's going to have to come from a thermal plant. You're not going to get that from a windmill, right? And that's why we're saying it really needs to be a partnership so that we can answer all of these decarbonization needs.

This is George Gianarikas from Canaccord Genuity. I just wanted to follow up on a point you made when you showed that map of Russia and Chinese influence, I mean what -- you mentioned Finland, but how much -- how big is the opportunity for the U.S. to dislodge either of those 2 countries in some of the areas where they have significant influence already?

Huge, and that's what I mentioned, $1.9 trillion. That's our opportunity, and that includes going to some of those countries that, in fact, have had these agreements, let's say, that they wanted to go Russian, I think everybody is taking stock. Now Russia did just build a reactor in Turkey. They did just build a reactor in Egypt and so it's going forward. But honestly, the United States has a different business proposition, right? We don't say, "I'm going to build it for you. I'm going to be in your country. I'm going to operate it for you. It's really mine, but it's in your country. That's not the U.S. proposition. What we say is we'd like to work together with you, would like you to be a part of operating this. We'll make sure that your folks get the jobs and get the skills to safely operate this. It's a partnership. So we go in with a whole different message. And again, let's just watch what we all saw happen between Russia and Ukraine. The way that we're talking about doing business with countries is resonating a whole lot more, a whole lot more. $1.9 trillion, that's just between now and 2050.

[indiscernible] I had a question. Clearly, the current administration has been pro making announcements around wind generation. Obviously, the U.S. federal government consumes a lot of electricity. Is there any talk or thoughts about the U.S. kind of setting nuclear targets in the future of how much consumption of nuclear energy they would like, which could potentially help expand the demand for new nuclear reactors in the U.S.?

Yes. Absolutely. I'm going to twist that though a little bit. You said are they going to set targets, I don't necessarily see that as the case where they're going to say, as a government, I want this much power from nuclear energy kind of thing, but let's look at it in another way. The Department of Defense, they have a lot of places that need power for the things that the Department of Defense does, Think about the bases that they have in lots of different locations. They're really very interested in nuclear. And part of it is what you heard earlier, and that is, what if the grid goes down? Well, if the grid goes down, they still want to make sure that they have power at their places. And they want to now make sure that they have power at those places with clean energy. And so you heard -- I don't know, let's just say, in the last several months, an official from the Department of Defense, talked about we might need 150 or so of -- and in this case, they were talking more micro reactors, and so they're thinking about that from a very -- again, it's a large deployment, because that's wonderful from a technology like nuclear. Again, we just got to get good at this. And one of the ways you get good at it is you build a lot of them. So I would look to some signals that we'll see from the Department of Defense. Right now, I think they're funding 3 different microreactor technologies, that they're looking into in different places. But absolutely, you're going to see that come forward. And it's not -- they're the only ones that would do micros. Micros are something that's maybe 20 megawatts or less. But any kind of remote location, think of on a remote place in Alaska or remote places in Canada. Well, if they're remote, kind of hard to get to. So if you put something there that needs a lot of replenishment for that fuel supply, well, that's hard to get it too also. Now if you put something there that doesn't need as much replenishment in that fuel supply, bingo, that works. And so that's why nuclear looks like a great option.

Maria Thomas America, Janney Montgomery. Just a question on the overall light water SMR market. How many designs do you think the market can sustain?

As I mentioned, this pie is really big. You're asking specifically about light-water technology, but I think you saw in some of these charts just how adaptable and versatile that this technology can be and so honestly, I think the fact that you're going to have multiple players in this space, whether it's light water or non-light water, we should want that, honestly, because you want to diversify that supply chain. And so some of these designs, like what you saw here, those modules are going to be small enough that they can be factory built, some other designs that you'll see come out are going to be a little bit larger. And so they'll have some factory construction, but maybe not all. They're all going to have sort of their own maybe pluses and minuses. I think the fact that some of these light-water technologies are going to use the current fuel that we're familiar with is helpful and just from a risk perspective, but I also have confidence that we'll absolutely work through challenges in fuel supply. And because this market is just too big, it's too hungry. So people are already coming forward to add that capacity on the fuel supply side.

Maria, thank you so much. That's all the time we have for questions today.

Great. Thank you.

Well, good morning, everybody. Glad everybody is here bright, early, ready to go. My name is Clayton Scott. I'm the Chief Commercial Officer for NuScale. I'm responsible for the global business -- commercial business of the company. I've been with NuScale just a little over a year. And I'm actually kind of liking this building, because the last time I was in this building was about a little over 1.5 years ago when we were ringing the bell and let me be more specific, Dr. Reyes was in here like a kid in a candy store, and he was hammering the bill, breaking gables, causing damage, having a great time. It was a miracle moment for us. So it was kind of good. And today, to be here, to talk about where we are, how much we've accomplished and the great announcement that we put out this morning is kind of exciting. So it's -- I'm kind of like in the spot, it's a good place. So having said that, a lot of things have happened. I mean we've put in $1.6 billion into our technology of getting us to where we are from an R&D perspective, from a certification perspective. And we've built this moat around that's really created a foundation that nobody else has really come close to doing. So I think that is something substantive in the market. We're ready for customers. Our readiness, our supply chain readiness, the fact that we have secured predominantly all of our supply chain at one level or another, it provides a lot of confidence for our future customers. Manufacturing, we're pouring. As John said, we're pouring metal. We're actually forging our first 6 modules today in the factory. And Tom is going to show what I think is a pretty exciting video later on, and you'll see some of that activity happening as it's going. And the other thing we'll talk about a little bit later is the relationship that we've created this partnership of ENTRA1 that I'll go through the model, which I think is quite significant and different in many ways. A lot of the things I'm not -- have been discussed in a lot of detail from Dr. Reyes and from John, so I'm not going to go into a lot of those things in detail. But I think certain elements that you'll continue to hear today, you kind of need to hear, because they're important to hear. We have a standard design that were to be manufactured in a factory. We're the only technology that's certified by the United States Regulatory Commission. We have best-in-class features. When Dr. Reyes designed this reactor, I have to admit it, simple things are the most difficult things to achieve in life. And I have to say hats off to Dr. Reyes, because he's come up with such a simplicity of design that you would go, wow, how come nobody else has thought of that? But it's one of those types of situations where you need that different thinking to come up with these ways that make us first in so many ways from a technology, safety, improvement perspective, that it really sets us apart in many ways. We have a first-mover advantage. We're currently in projects, and we just announced 2 more opportunities with Standard Power this morning, and I'll talk a little bit more about that later. And we continue to work on our regulatory and deployment progress not only in the United States, but in other countries. We talked -- Maria touched on this, John touched on this. The market is huge, and it's not going to get any smaller. Population is increasing, energy demand is increasing, and energy demand is different than what we thought. It's not the traditional utilities that, "Oh, yes, utilities are going to build another plant, " it's much different. It's data centers. It's coal plant repurposing. It's ammonia production, hydrogen production, steel producers, industrial heat, it goes on. Everybody needs electricity or process heat, and it's not going to get any less, especially data centers and AI. Every time you look at your phone, you're sucking up power somewhere. That data center has got to stay on 24/7. Their main concern is four 9s. They want reliability and availability 24/7. We as a world, can't function it without it. We have to have that. It's critical to our future. We depend on it. Everything we do is related to some type of data download somewhere. So this is an incredible market. Coal to nuclear, tremendous amount of coal sites that need to repurpose. And we'll talk a little bit about that later. So there's a huge market. This market is not just United States. This is the same everywhere. It's a global issue. We need more power, we need more demand. How do we get there? We try to be accelerating to be first, take advantage of our benefits, take advantage of our certification, take advantage of what we can bring based on our existing technology, deploying where we think is strategic for us to focus and expanding our pipeline, new capabilities with our partner, ENTRA1. Target customers are large-scale industrial manufacturers, major utilities, coal power, refineries, et cetera, industrials, data centers, as I mentioned earlier. Also looking for importance is site selection, trying to find sites that are preapproved, so that we can deploy quicker. Our goal is to be first to the market as best we can so that we can deploy and improve this market, improve this technology, finding sites that are ready to go gives us an advantage to do so. Demand for capacity at multiple plant configurations was just something I'll talk about a little bit later is that Dr. Reyes touched on it is our flexibility and how we can service different markets, different applications from one site. The IRA is the Inflation Reduction Act, which came out earlier, I think, this year. And it took some time, I think, for people to digest. It's not a couple of pages. It's pretty thick thing, pretty complex document. And it took some time for people, I think, to really understand what it means. And now I think there's a grasp when people know what it means. And the fact that they can get 30% tax credit towards building costs, they can potentially get 50% cost reduction. The fact that you can have clean electricity credits, you can get credits for steel or you can get credits for employment, using certain domestic talent. The hydrogen aspect is $3 per kilogram available for 10 years. There's a significant amount of incentive for customers to build. And the key is that as long as they have something in construction prior to 2032, they can take advantage of this opportunity, and this is now starting to generate a lot of interest to us going forward. Coal repurposing, Jose talked about this a little bit earlier. This is a very unique situation. I mean it's -- to John's point a while ago as well, this is an opportunity with our EPZ where we can come in and we can put ourselves on that coal site, as you saw in the video at the Doicesti site in Romania earlier as well, we can put it on the site. We can repurpose all the people. We can create jobs for the community during construction, during operations. This is an opportunity that gives you a clean environment, gives you the chance to move people into a brighter future 60-year life of a plant gives them a long-term reassurance that their community is going to survive. This is a big play. Not everybody can do this. And the EPZ really helps us because it allows us to put it right close to the existing infrastructure assets that are needed to connect. This is a big deal. You build a solar farm, what do you do -- you create what, 20 jobs, 15 jobs. We come in and we put in -- we create 270, 280 jobs. It's a big difference. So this is something that I think is a game changer for everybody. Hydrogen, Jose touched on it a little earlier. I mean, I think that's what we've been doing with his analysis on increased temperature and being able to use our heat is something that I think is significant. Our goal is to have a green solution as a heat source to bring the cost factors down of hydrogen production. We all know the cost of hydrogen needs to drop. The target is $1 a kilogram, but we're trying to get there trying to figure out how to get there. We're working with different companies on some studies, but this is an exciting future and something that we haven't really talked about. As I mentioned, is desalinization and desalinization is another significant opportunity for us because they need a tremendous amount of heat. And there's a significant part of the world, Middle East, North Africa that need water. And we've been having those discussions in the desalinization and the fact that our plant can both operate wet or dry is a big difference, because we're the only technology that can be in the dry air cooled situation. So putting us in a desert or putting us in an aired place that needs desalinization sets us apart significantly. So you heard a lot about ENTRA1. So I'm going to kind of spend some time explaining why and what this means. So ENTRA1, NuScale created this relationship about a year ago. And to Maria's point a while ago, you looked at China and Russia, how they come in and they take this one-stop shop approach where they come in, they develop, they finance, they build, they own, they do the whole 9 yards. Of course, it's had a big geopolitical position, and they have a lot of funding behind them. So we were thinking, okay, how do we at our level, compete? So what we decided is let's create a relationship with ENTRA1. ENTRA1 is an independent power producer, but they have a historical where they are an infrastructure company where they've come in and they've rebuilt countries. They rebuilt Iraq, they rebuild Kuwait, they rebuild Turkey. They've built all over the world. So they understand how to do big projects. They understand how to put infrastructure in place. They understand how to finance. They have access to the capital. So having that partnership was key. So we, NuScale, we provide a reactor. That reactor goes in a reactor building, which is built by ENTRA1 as a builder owner operator, to which offtakes to those various things that John had showed earlier. And the thing that's interesting or what I think is incredible is that if you have 12 modules, which, by the way, most people that we're talking to today are interested in 12 modules. It's a better return on capital. It gives them more flexibility. They understand that as they grow because they don't have to wait until you put 12, you can put 1 in and turn it on, put 2 in, turn it on, so you can slowly up to your demand, but they're thinking they're like, okay, well, if I build 6, what happens if I need more power, I got to build another one. So I'll just build an infrastructure for 12 and I'll populate it. That's very unique. Nobody can do that. And on top of that, each one of those have an individual turbine so that you can offtake. So we can actually service multiple offtakes, not just one. So if you want some dedicated modules to hydrogen, you can do that, you want some dedicated modules to power, you can do that and you never shut down as Dr. Jose Reyes mentioned earlier because when you're refueling one, you've got 11 running. So you never shut down. So this allows us tremendous flexibility and opportunity. And having this relationship, which I'll show a little bit more here, what this means. I traveled with CEO of ENTRA1 globally. We've been working on opportunities in this pipeline. And this model is what's missing. Most places, the key thing is how do you finance it? How do you develop it? Who puts it together. A lot of the companies don't, the industrials don't -- they just want the offtake. They want to do a PPA, they don't want to own the plant. They don't want to operate the plant. They just want the power of the heat. A lot of existing utilities, they're not sure on the first one either. They want to derisk. They kind of like, well, if you guys are willing to come in and do a one-stop shop and build an own fine, we'll take a build-on transfer. You guys can build it and then we'll transfer it later. So this model, and I think it's important when you look at this drawing, this green box, that's NuScale. We're the technology. ENTRA1 provides all the other top row, these are combined, obviously, the rest, but this is our focus. But collectively, we provide this one-stop shop that satisfies all of those issues. This is key. And when we go around the planet, it's not just about decarbonization anymore, as everybody has mentioned, it's also energy security. And everybody wants this model, because they don't want -- they like the Chinese and the Russian model, but they don't want to deal with China and Russia. So they need something like this. So this is what really drove the interest behind us is to put this together so that we could come in and offer something that took risk off of their concerns. So collectively, the goal is we commercialize. ENTRA1 is responsible for commercialization and deploying our technology in a build-own-operate situation where they can build, own it and operate it under a PPA to the client. They can build on transfer where they'll build it, operations are transferred to a utility company later under a long-term operating lease or they'll come in and develop and finance. And as I said earlier, they're financed backed Western supply finance, very strong backing, very strong relationships. And this model is something that I think is what everybody has been looking for and wanting and we're exciting to be offering it. And today, great news, Standard Power. We've announced this morning that we are going to do 2 plants, 12 modules, 924 megawatts each, one in Ohio, one in Pennsylvania. And this was because of our abilities to put the plant in the locations because of the EPZ, because of the flexibility of the technology, because of our certification with the NRC and because of ENTRA1 being able to work with Standard Power under the models we described earlier, brought us this solution. And the fact that Standard Power, they need the power like last year. These guys are building data centers. They need it now. And they have the demand and matter of fact, they're looking long term at a lot of opportunities. They see the growth, as I said earlier, AI and data centers, it's a tremendous growth pattern for our future. So it's a great opportunity. We're excited. Now the good thing is, is that this is an immediate situation. We're going to start work right away. Actually, Standard Power has already been working substantially on their existing sites that they're working with. So they're invested. So we'll start immediate work with Standard, and this is an exciting opportunity for the company. And it's great to be in this building to talk about it, like I said, so we're excited to see this move forward. Again, we have 3 committed customers. John mentioned CFPP earlier. RoPower, you saw the video. And now today, we have the announcement on Standard Power. Clearly, we continue to find further customers. And with our partner at ENTRA1, I won't say the number of gigawatts that we have in the pipeline, but I can tell you it's a pretty significant number of gigawatts. We've been traveling around the world, and as Maria mentioned in some countries, I mean, we certainly -- we've been talking in France. We've been talking in Turkey. We've been talking about Morocco, were in Eastern Europe. All of these countries, who have been very interested in what we offer from both being able to put our plants in a dry environment, a normal wet environment, having the energy security, having the ability to decarbonize their needs is key. Recently, I think it was last week, I think we were announced as one of the down selects for Great British Nuclear in the U.K. So we're on to the technologies that will proceed to the next level for evaluation. Ultimately, they're going to pick 1 or 2 technologies to populate their country's SMR needs going forward. So that's another exciting opportunity that was announced a few days ago. So things are moving, as Maria said, the world needs power. And I think everybody kind of -- the light bulbs come on finally is like, yes, this nuclear thing is not bad. It's like, I think clean 24/7, yes, it's good. So I think people are starting to drink to cool it. So having said that, we have moat. We have deployability. We have big kit, and we have a developer partner and we see growth, and we're excited to be here and look forward to answering your questions later on. And I'll turn it over to the next speaker. Thank you.

Well, thanks, Clayton. Hello, everyone. My name is Tom Mundy, and I am the President of VOYGR Services and Delivery. That's the business unit with the NuScale responsible for our scope of supply associated with the deployment and the operation of NuScale customer plans. I've served in multiple leadership roles since joining NuScale in 2012. Before NuScale, I spent 30 years in the U.S. utility business, including in a variety of positions in both existing nuclear plants and new nuclear initiatives. So with that, let me begin my presentation. My team and I are focused on current customer project engagements as we optimize our service delivery and manufacturing capabilities to serve customers globally. This slide summarizes what you'll hear from me today. First, we're focused on driving successful project execution with our current and future customers, which is enabled by the rigor of our program development. Second, we have an established supply chain with a strong partnership model that enhances our ability to deliver for customers. Third, we have a build to print sourcing philosophy that drives efficient lower cost equipment and a strong security of supply for new customer orders. And finally, we're well positioned to capture the significant long-term growth opportunity our services capabilities present in the periods before and after commercial operation of our customer power plants. Okay. As you heard today, we are the only SMR with the NRC design approval and the only Western SMR technology that is in production mode of its long lead equipment. My team is organized into 3 distinct groups to serve our customers, client project management, equipment supply and services delivery. From meeting rigorous quality assurance and professional certification requirements to comprehensive manufacturing trials, we are well ahead of the competitors in terms of supply chain development and readiness. And I want to be clear, what we are doing is not theoretical. Our simplified design and highly efficient manufacturing process capture the benefits of SMR modularity. The module takes a significant amount of work that has typically been performed in the field and moves those activities to the factory floor, taking advantage of repetitive assembly line production, which I'll speak to more in a moment. The module itself doesn't require any infield construction erection or fabrication and has been sized to be transportable to the site by truck, rail or barge. Our assembly and delivery model reflects what module -- board module as that term is in SMR was intended to mean enabling us to create enormous value to customers, whereas other SMRs that have simply shrunk down a conventional reactor that is neither modular in design or function. Our design maturity, production readiness and program management execution all support profitability of current and future projects. NuScale has received high praise from our customers in how well we've managed our share of project activities and how they've been executed. This has also been the case for the scope of work for the carbon-free power project and the licensing and manufacturing achievements we have made are extremely relevant and reusable to other projects. I'd like to take a moment to provide an overview of our latest developments in our current international project for a customer, RoPower. You saw the video that John played earlier this morning. The video presented or prepared by our customer. In terms of an update for that project, the activity -- project activities are going very well. The project has an identified site and the project has completed Phase 1 of what's referred to as the front-end engineering and design work or FEED. And this phase is just now ramping up. Funding committed at the G7 Leader Summit in May, including a multinational public private funding partnership will continue FEED work under Phase II with a number of planned activities, including procurement of long-lead materials to completion of the FEED work and more. We're preparing to begin Phase II FEED work, which is expected to formally commence at the end of this month of thereabouts. And we believe our RoPower project will serve as a model for future international growth and showcases the ability to repurpose call plant infrastructure for NuScale deployments. As I alluded to, we have a specific yet important scope of supply associated with the delivery of NuScale power plants. With that supply comprised of our engineered nuclear technology and related equipment. Obviously, the most critical component of that is the NuScale power module and the ancillary equipment that goes on the module. We also provide nuclear fuel bundles, mechanical handling equipment and control systems and some other pieces of equipment. The power plant structures and the balance of plant equipment is sourced and delivered by our engineering procurement and construction partner on the project. Our contribution to the delivery of NuScale power plants is premised on the equipment and services we have developed with a logical focus on achieving long-term profitable growth derived from activities that are reflective of our core competencies as the original engineered equipment designer and supplier and as a service provider. We have derisked our scope of supply significantly through our established ecosystem of suppliers and partners, which were chosen because of their extensive nuclear technology and manufacturing experience and who have been working with our design team for many years to perfect the finished product. That is ensuring that the final design can be made by any capable and competent supplier with expected and predictable cost and scheduling performance. It's key to the success of our supply chain delivery. Some SMRs that are not of the light water variety, they contemplate the use of materials or fuel that will require further qualification, development and approval presenting additional commercialization challenges. Our program is premised on the use of materials and fuel that is well established, approved and readily available. We have spent years getting to this point, so that when we place an order our suppliers are ready to produce what is needed. The NuScale difference starts with our approach to the relationship we develop and ultimately leverage with suppliers and vendors. These deep relationships are harnessed for operational and financial benefit. In fact, our program supply chain participants are truly vested with several believing in our technology in the future so much so they decided to become strategic investors in NuScale. Now that commitment to partner with us for the long haul leads to sharpen pencils when it comes time to bid, because they don't see their contribution limited to a one-off project. They anticipate a steady stream of work, a robust book of business and are pricing their scope of supply with that view in mind. The engagement and commitment of our suppliers was showcased at a recent suppliers meeting in August, where we had strong participation, engagement and interest from those companies that are currently supporting our commercialization program. Our build-to-print approach allows us to scale our sourcing needs should our book of business exceed the current capacity of our existing supplier base. As I mentioned earlier, not all SMRs are truly modular in the context of what this innovation enabled for customer value. Many SMR vendors promote the modular aspect of their program through the use of modular construction techniques. In fact, most modern nuclear plants, large and small today, including NuScale, utilize modular construction techniques to the extent it makes sense. But such practices don't necessarily counter the effects of lower power output and working against economies of scale. The NuScale design moves expensive and complicated in-field construction activities to the factory floor, maximizing benefit from repetitive assembly line production of the entirety of what's referred to as the nuclear steam supply system and containment, all in 1 package, while also maximizing design simplification with the resulting decrease in capital costs and operating costs and therefore, also much lower schedule risk in production. Costs will come down over time as we learn from early production and also by implementing advanced manufacturing techniques that the industry is currently perfecting and we're working with them on that. Our build-to-print philosophy means that any qualified and capable nuclear supplier can produce our equipment, allowing us to expand capacity to meet our book of business and to receive multiple quotes to produce equipment and obtain competitive pricing for our customers. This is another one of the many differentiators from our competition. Now we've gotten to the favorite part of the presentation, another video. The video that you saw earlier is very exciting to see that station in Romania be decommissioned, the site cleared and ready for construction. We continue to lead the way in manufacturing readiness and execution across the advanced nuclear industry. In April, a significant milestone was achieved as we began forging of the first NuScale power modules. I'd like to share a video that showcases our long-lead forging work from our supply chain partner, Doosan Enerbility at their facility in Korea. [Presentation]

What you just saw was the result of forging a large hot ingot weighing about 272 tons. It's shown in the previous video. This is the forge element that resulted from that ingot down -- and this -- the weight of this particular element is roughly 56 tons. So this is the preliminary machining. This is what's referred to as the integral steam plenum. This component is located at the upper region of the reactor vessel. This will further be refined machine down to about a 24-ton component, but you can see it takes a substantial effort to get that molten steel, produce the ingots, to forge and form the ingots down to something like this, then machining and refining. But this is the work that is now undergoing -- being undertaken at the facilities in Korea. Looking forward to the end of the year, we'll continue to make progress on the production of the NPMs and the development of the remainder of equipment within our scope of supply. The completion of this work is sequenced with our customer project plans for a timely transition to manufacturing and procurement activities that will ensure on-time delivery of our product. We are indisputably ahead of the peers in this critical respect. And as we start ramping up the manufacturing of our NuScale power modules and other equipment, it will mark a significant transition from planning to execution of our product delivery capability. I'll wrap things up by highlighting the services we provide to our customers throughout the entirety of our customer project and the 60-plus year life of the plant, which we believe creates considerable value for our shareholders. The chart here actually shows the continuum of work that occurs by year prior to commercial operation beyond commercial operation. This is a fairly conservative view to take into consideration a variety of regulatory regimes, customer capability, greenfield site, et cetera. Most of the activities that you see here before COD would occur roughly 5 -- 4, 5 -- excuse me, 6 to 5 years prior to commercial operation. Now looking at NuScale's revenue model for the first 3 to 4 years, NuScale provides services to customers to assist in the establishment of its operational program, training and licensing of the plant as well as start-up testing, and commissioning of the power modules and related equipment. Many of these services are already being delivered to our first customers in parallel to these service delivery activities in the period prior to commercialization, we're receiving revenue associated with the sourcing of the equipment, including progress payments made in connection with the production of the NuScale power modules that occurs over a several year period. In the period following commercial operation, we will be providing an assortment of support to our customers. And while the level of support varies with the nuclear operational capability of the customer, we expect to provide services to assist customers and support of safe and efficient operations, including support with maintaining an assortment of regulatory programs, ongoing and requalification training, refueling and spare parts management. Some of this support is premised on the use of a proprietary computerized system that we've developed. It's known as the NuScale operations platform, which will enable our customers to save on their O&M costs through reliance on NuScale under a shared service model. Given the more a 60-year life of the power plant, we believe our service revenue has a very long tail providing a large and predictable and profitable long-term revenue opportunity. Last, I want to leave you with a few of the thoughts with which I started today. We are leveraging the practices tools and project control systems under our existing and well-developed program office. The focus of my organization is on delivering work scope on budget and on schedule. Our mature program enables us to provide customers with cost estimates that are based on well-defined information and not just preliminary concepts. NuScale is much further along in the competition due to the status of our licensing and commercialization program, and that distance grows every day. And I'd also like to dispel the notion that regulatory approval means you're ready to go. It's just not the case. Much, more funding and effort is needed following regulatory approval to be able to commence manufacturing and construction. And there's a huge body of information that needs to be produced. In our case, $1.6 billion or more has been invested to get to the point where we are. All of that now is in our rearview mirror as evidenced by the commencement of production of long-lead equipment and real and ongoing customer projects. And lastly, we have a very exciting opportunity via our services solutions, many of which are already being provided to customers today. With that, I welcome my colleagues back up to the stage so that we can take some questions.

Sameer Joshi from H.C. Wainwright, back here. So congratulations on all the progress that you have made and good luck for the future. A lot was talked today, but not much about fuel and spent fuel supply, safety and security of those 2 things. Can you elaborate on that?

Yes, this gentleman came from 30 years with Framatome, so he is definitely our fuel expert, Clayton?

I think Jose can add some stuff. But the key thing is that we are using traditional fuel LEU fuel. So it's not something new. So it's something that's been used in, I would say, a good majority of the existing conventional reactors today. From a used fuel perspective, I don't think it should be called waste, because it's not appropriate. So from that side of it, our site has the ability to put storage facility or a storage pallet on site, which is about an acre that can hold our fuel for the life of the plant, 60 years, actually, we can hold it close to 100 years in keeping it in dry cast containers. So basically, when our fuel comes out, it goes into our fuel pool, stays in there for 5 years. And then from that point, it goes into a dry cast storage and the dry cast storage could be sat outside and be stayed -- can be sat there for many years. After that, in the U.S., the Department of Energy has an obligation to take that fuel and take it to their repositories or to their vitrification plans, et cetera. Other countries, we basically have the same philosophy, but then we follow whatever regulatory or waste management program that they have in their countries. And if they don't, they have a lot of time to put something in place. And there's also opportunities where reprocessing between France and bringing it back to other countries is something that we also can look at, and this is something that we've had in discussions. And Jose, I don't know if you want to add anything to.

No, I think you did a good job covering that. It's 0.8 acres that we're looking at to store all of the used fuel for the 60-year life of the plant. So we're talking about a very, very small footprint. And dry cast storage is best practice in the industry in the United States today. So I agree with everything Clayton was saying.

Can I add to that? We haven't approved fuel from our certification is based on Framatome's latest version of this relationship with Framatome. But it's currently available Framatome fuel essentially that they produce today for the existing fleet, and it's been reviewed and approved by the U.S. Regulatory Commission for use in our reactors as well. So we have a readily available fuel supply. The customer has the enriched-uranium product available, they could actually place orders for finished fuel bundles today. We're well positioned on the fuel supply element of our program.

This is George Gianarikas from Canaccord Genuity. So you spent a lot of time discussing this groundswell of opportunity and in a lot of discussions that you're having around deployment of nuclear. I'm wondering what any bottlenecks are? I mean, is it a cost discussion? Is it an evaluation of different technologies that are happening? I'm curious as to what's coming up in your customer conversations.

I'll just start. When I came into this industry, I guess, 11 years ago now, I come at the time I was working with an EPC, we're doing offshore wind. We're doing PV solar fossil plants. And when I came into it, I didn't have the appreciation, a difficult industry is. I was told, you'll never get to the NRC. You'll never get on a federal facility. And in the waste issue. Today, it's more what I hear more than anything else, because we knocked down all those roadblocks is commercial viability. Our ability to ensure that we're on schedule and on cost. And as we talk about today, that's the critical importance of having the supply chain as a technology provider. So if I build a plant, there's the owner's cost, there's the contractor's cost, there's my cost and that's delivering of these modules to the plant. So I'm very comfortable with our existing supply chain. We mentioned Doosan and Samsung and IHI in Japan, they have excess capacity. We went out and looked at their facilities, and they have -- they were building up and gearing up the large renaissance and never occurred in this country. So their ability and they're not looking at a one-off sale. They're looking at a holistic view of NuScale going global, and they're going to be a strategic partner for us, and therefore, they're willing to sharpen their pencils and give us very competitive rates.

I guess, well, I would just add, in general, one of the challenge that you're asking about is not in my backyard, which I think has changed a lot. We're finding now today that it's a different view. People have a much different view of acceptance around nuclear. So the younger generation think nuclear is much different than what the older generation came from. And I think we're seeing that globally. It's not just in the U.S. So the whole acceptance of wanting to do this, and to John's point, it's not -- that's not really the prime part of the discussion anymore. It's about how fast can you put this up, right? So the dynamic is changing.

Marc Bianchi from TD Cowen. Congratulations on the project announcement today. I'm curious what extra steps are involved for that to be in a final investment decision position. So if we compare it to what we've seen with UAMPS, there's this cost estimate series that you're going through, there's subscription levels. There's other sort of milestones that need to be met for that to move forward. What are the milestones for this to...

To the new plan to just go online? This guy had worked with ENTRA1, spent a lot of midnight hours deal together. So...

Yes, I don't even have any hair to scratch up. So thanks for the question. But no, the demand is already taken for, right? So they already have. It's a behind the grid situation for predominantly most of that use and whatever is not behind the grid, they'll obviously dump to the market. But right now, the demand is taken forward at both facilities. So now we'll go through our immediate process of working with their AE doing our early works agreements and getting our licensing process, et cetera, going forward. And then from the financial perspective, they have their moneys that is set aside and spoken for at certain levels. Obviously, ENTRA1 is a component of bringing in some of that bigger capital that's going to be needed after you do the FEED. But as of right now, when you look at both Standard Power and ENTRA1 combined and when you look at their resource of capital, they seem to have, actually I would say, almost in abundance, because they're well satisfied on both sides. And as you know, it's not an immediate deployment of capital, right? It's over a process of time. But it's a very robust model that I can see from what I've been doing in my diligence as a company looking for them as a positive customer. And the fact that they have a demand already taken is a big plus.

And I've said before, I applied Wall Street, the funding behind this is all U.S.-based capital coming from major institutionals. So the message is resonating. And that's why this -- we believe this model is so important for us forward, but...

Great. I just want to follow up with -- on the ENTRA1 on relationship. And my memory is a little foggy, but I thought there was some sort of an agreement with Fluor around marketing NuScale Power modules. Maybe that was a Western agreement, maybe it was a right of first refusal. But could you just remind us what that is and how ENTRA1 fits into that if -- is Fluor involved in the projects? Or how should we think about that?

CEO of ENTRA1 had a joint venture agreement with Fluor about 10 years ago, predominantly for reconstruction of Iraq and areas in the Middle East, and there is Fluor and some other majors that are included within that joint venture. What happened at that time, the timing was that in the start of the year of spring. So security concerns that came together. But we retain that relationship over the years. He's known [indiscernible] group for quite some time. I've known them. And so it's always been there. So we got together over a year ago and started a discussion about how would this model work. So we strategically went into the white room, and Ramsey knows intimately about the process itself. Do you want anything to add to that, Ramsey or...?

No.

I mean we have an exclusive opportunity to present Fluor to the owner. But the owner at the end of the day, ultimately has the final decision on who they want to decide to move forward, right? So ENTRA1 and Standard Power as an owner, I think we've presented that. They've expressed, now Fluor could or may not be part of that ultimate solution. That's up to them. But we have presented according to.

Marc, what I like about the steel too is we have limited resources with new skills. So our ability to vet quickly and focus in instead of doing a shot gun where we get a mile wide and inch deep. Here, we're looking at specific opportunities in going in and offering energy solutions to customers that really have a need. And that's how this materializes. They have a huge need. There's huge opportunities in data centers. We think AI is going to be more than anybody can handle, quite frankly. And they're helping us do that, allowing them to go in and put the deal together, we bring our asset to the job site.

That's great. And just one more on this whole project while I've got it. The DOE cost share that goes to the UAMPS, CFPP project. We saw with X-energy and their ARDP money that was able to be transferred to a different project with Dow. Is that dynamic possibility here?

I was with DOE 2 days ago, having these types of discussions that it's not only that. I think what's really important to us too, is if need be, we could relocate those modules as well. But we are in those discussions.

Thank you. That's all the time we have for this Q&A. There'll now be a 5-minute break, and then we'll resume. [Break]

Welcome back, everybody. I trust everyone had a great break. I'm Carl Fisher. I joined NuScale this summer as the new Chief Operating Officer. I would tell you a bit about myself, my role and the long-term value my team and I expect to create within the operations function at NuScale. First, a bit about myself. I spent decades in the nuclear industry with past positions at Framatome and Duke Energy, both domestically and internationally. My time in the field began in the United States Naval Nuclear Propulsion Program. Key themes under my purview includes: first, as an organization we have achieved tremendous operational success thus far, and we remain focused on delivering for our customers as we pivot from where we are currently to commercialization. Second, our focus on safety, quality and performance results in our ability to consistently deliver best-in-class engineering and licensing expertise. This, in turn, drives our industry leadership and will continue to do so. Third, we have processes and tools in place to ensure that the manufacturing of our modules proceeds efficiently and effectively. Since I've been in the seat, my team and I have identified near-term and low-hanging fruit, opportunities that create company-wide operational value as we pivot to commercialization. And finally, the standardization NuScale will offer to our customers in terms of plant design, constructability, supply chain and delivery are a tremendous benefit in terms of predictability, timeliness and cost effectiveness. I'll start with our philosophy and how this drives our pursuit of operational excellence. It centers around our relentless focus on safety, quality, performance and delivery for our customers and our stakeholders. Our pursuit of excellence in these areas will fuel our success with customers, regulators and supplier partners. As John and Dr. Reyes mentioned earlier, our culture sets us apart, and it's one of the main reasons I personally wanted to join this company. We are ensuring best-in-class nuclear and industrial principles are being implemented across everything we do. Safety is at the heart of any decision we make. It is our top priority and sets the foundation for everything else. The engineering talent we have at NuScale is remarkable and we continue to ensure we attract and retain the best engineering and customer service talent. As Tom mentioned, together with our strategic partners who are committed to our shared success, we have established a quality assurance framework that emphasizes standardization and simplification to achieve cost efficiencies. This enables us to produce our deliverables consistent with the plan the first time. Our customers are well served by NuScale's commitment to rigorous analytical measurements and continuous improvement. We are focused on delivering a consistent experience and our engineering and licensing advantages enable us to execute on schedule and cost promises. NuScale's advanced development, design certification and talent separate us from the competition. After spending a few months in the seat observing and learning, I'd like to share our top strategic priorities. These specific initiatives under my purview will feed continued development and growth combined with the top of the house focus areas I mentioned on the last slide, these priorities will feed the growth, production and delivery plans you heard about from Clayton and Tom. One, the manufacturing program and plant design we have in place position us well to accelerate deployment of our first-of-a-kind plant, and we have sustainable strategical advantages to optimize our cost structure. Two, we anticipate substantial potential to optimize our processes and design by swiftly applying learnings throughout the organization. This will benefit NuScale's operations, engineering, project management and quality assurance. The resulting standardization will produce an nth-of-a-kind power module that is cost-effective and delivers a predictable process for our customers. And just as important, we can avoid producing a series of one-of-a-kind deliverables and the costs associated with that. Nuclear has already been acknowledged as a cost competitive form of clean baseload energy. We have strong inherent benefits from the off-the-shelf design, components and inputs. We're going to deploy best practices from past first-of-a-kind projects to drive first-of-kind optimization and significant reductions for customers as we move from first-of-kind to nth-of-a-kind. Standardization is our focus. The extensive work we have put into our design and planning as well as assessing, manufacturing and material needs, position us to reap cost reduction as we optimize our nth-of-a-kind cost for long-term standardization. We can do this by leveraging unique enablers such as standard design and exceptional program and project management functions, which leverage our very mature derisked supply chain, as Tom mentioned. We will also do this through our licensing progress and strategy, which Kerry will cover later. We will continue to put customers first in everything we do. We know in great detail what they need from a construction and operational perspective. We believe our enablers will help them minimize CapEx, maximize output, operate safely, flexibly and profitability. Importantly, we are confident that execution will enable us to deliver at a competitive and predictable cost compared to other low carbon options. All the while consistently providing unmatched safety, reliability and resiliency that I and others have mentioned earlier. We have come a long way on the strength of a strategic investment and are poised to drive sustainable operational competitiveness over the long term. With that, I'll recap my key comments. Again, we are pivoting to a commercialized state of operation. Our philosophy, investments and strategic focus are key differentiators, and we are further separated from competitors by support from our supplier chain partners who are fully committed to NuScale's success because they understand that this isn't about one single project, but a long series of opportunities tied to construction of new scale plants throughout the U.S. and all over the world. Our focus on safety, quality and performance will remain relentless. We have strategies, processes and tools to ensure we continue our manufacturing and deployment momentum. Lastly, we plan to further optimize and standardize for customers to deliver on time and on budget. And now it is my pleasure to welcome Mr. Steve Burns, former Chairman of the NRC. Steve, the floor is yours.