NuScale Power “has entered into a revenue generation agreement with RoPower regarding the continuation of the Phase 2 Doicești FEED project,” US nuclear mini-reactor developer NuScale says in a public report in relation to the results of the second quarter of the year. The clarification is made in the context in which the company reported an income of 1 million dollars for the second quarter and a net loss of 74.4 million dollars.
In the same period last year, the company reported revenue of $5.8 million and a net loss of $29.7 million.
We remind you that in mid-July the shareholders of Nuclearelectrica decided continue with the project regarding the construction of micro-reactors American NuScale in Documentation. The points agreed at the last meeting of Nuclearelectrica shareholders laid the foundations for the conclusion of a contract estimated at 156 million dollars for the preparation of studies related to the NuScale project.
The money needed to continue the project could be secured from a $243 million loan to project company RoPower.
NuScale: We expect additional revenue
“The company has entered into a revenue agreement with RoPower regarding the continuation of the Phase 2 Doicesti FEED project. the developer’s report said.
On 19 July, Nuclearelectrica’s shareholders approved the conclusion of the Phase 2 offshore and onshore FEED contracts (second phase of the design and engineering study).
It also includes the development of the feasibility study. The study will be carried out by the American companies Fluor, the main contractor, and NuScale, as a subcontractor. The procedures last up to 15 months.
“The services provided by Fluor will be considered based on the number of hours of activity performed in the performance of the contract and according to the costs paid by the supplier,” the document states. Nuclearelectrica says.
The estimated value of the services from the Phase 2 FEED Contract is 156.3 million dollars, according to Nuclearelectrica. The company says that the value can be increased, based on the costs involved and the hours of work performed.
The beneficiary of the services is the RoPower Nuclear project company.
The American company Fluor Corporation is very large, listed on the New York Stock Exchange and with a turnover of about 15 billion dollars a year. It is a multinational engineering and construction company headquartered in Irving, Texas. However, the contract will be signed with a Romanian subsidiary.
Nuclearelectrica’s document shows that Phase 2 FEED activities will take place through the introduction of a contract between RoPower and the Bucharest Branch of Fluor Transworld Services, a group with its registered office in Romania. Some FEED Level 2 services are subcontracted to Romanian legal entities.
Nuclearelectrica will be able to grant a loan of 243 million dollars
Another important point agreed by the shareholders of Nuclearelectrica is the loan of 243 million dollars to the project company RoPower. Nuclearelectrica also made loans to RoPower, but their value was significantly lower.
This loan raised serious questions, and that is the main reason why the Ministry of Energy did not want to vote on the items on the agenda in April, a source from the Ministry of Energy explained to HotNews.ro.
After Friday’s decision, it will be possible to convert the amounts used by RoPower from the funding ceiling into shares, during the company’s future capital increase, according to the Nuclearelectrica document. Other shareholders may be attracted to RoPower.
What the shareholders have now agreed to is the renewal of the original loan agreement, which expired in August 2023, which provided the amount of $8.9 million. Now, it increases, through a third additional act, to 243 million dollars.
The project company announces the need to fund the second phase of the design and engineering study (FEED 2).
“The loan granted by SNN to RoPower Nuclear shall be secured by the establishment of a mortgage on all intellectual property rights acquired or to be acquired by the Mortgagor pursuant to the Phase 2 FEED Agreement, as well as all products provided by Fluor passed in which these intellectual property rights are included, respecting the rights and obligations of the parties”, the Nuclearelectrica document also says.
The project company RoPower Nuclear SA is owned in equal shares by Nuclearelectrica SA and the private company Nova Power & Gas, which is being established in September 2022. The main area of activity of Nova Power & Gas is solar gas. Nova Power & Gas is the owner of the site in Doicești.
Nova Power & Gas is owned by E-Infra, controlled by brothers Simion Mureșan (30%) and Teofil Mureșan (40%) and businessman Marian Pantazescu (30%).
2024-08-09 13:33:20
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