Nuscale Power Corp Analyst Day Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: George Gianarikas - Canaccord Genuity Corp., Research Division - Analyst : 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? Maria Korsnick 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. Unidentified Analyst (inaudible) 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.? Maria Korsnick 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 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 06, 2023 / 12:00PM, SMR.N - Nuscale Power Corp Analyst Day 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. Unidentified Analyst 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? Maria Korsnick 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.

Question: George Gianarikas - Canaccord Genuity Corp., Research Division - Analyst : 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.

Question: George Gianarikas - Canaccord Genuity Corp., Research Division - Analyst : This is George Gianarikas from Canaccord Genuity. Questions for Dr. Reyes, you had a slide in the very beginning, that talked about the breakdown of nuclear, the demand in 2020 into 2050 and a certain market share for SMRs. And I'm curious as to whether or not you could share your thoughts on how that's going to break down. The percentage of wins for Gen 4, how successful that will be versus light water reactors.

Question: George Gianarikas - Canaccord Genuity Corp., Research Division - Analyst : My question was more about technology breakdown, how to talk about competition? Who's -- which technologies do you see proliferating more over time to?