Constellation backs Blue Energy in first SMR investment

Turnkey nuclear power plant developer Blue Energy has announced an equity investment from the venture arm of Constellation Energy.

It marks the first investment by Constellation Technology Ventures in a US developer advancing small modular reactors and will help boost Blue Energy’s ability to deploy proven reactor technology at scale.

David Dardis, Constellation's senior executive vice president, said: “Constellation is committed to exploring innovative pathways that can help accelerate the deployment of advanced nuclear technologies in the United States and allocate risk appropriately.”

According to Blue Energy, the biggest challenge facing new nuclear deployment is financing and deploying quickly enough to meet the growing demand.

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The company answers this conundrum by using proven nuclear technology and employing what they refer to as an “innovative large-format robotic prefabrication and assembly method inspired by offshore oil & gas and LNG projects”.

Using this method allows them to accelerate deployment and unlock timely investment.

They manufacture nuclear plants at existing shipyards and fab yards using an assembly line approach, which reduces costs over time. The plants are delivered on barges in prefabricated megablocks and then assembled at the site in less than a year. 

Early revenue

The novel plant uses a gas-to-nuclear bridge. This initial natural gas phase, states Blue Energy, provides immediate energy and early revenue that derisks the project financially. This will ultimately transition to zero-carbon nuclear power in the long-term.

Blue Energy chief executive Jake Jurewicz stated: “With demand for near-term power rising, Constellation's investment will help Blue Energy meet America’s need by making new nuclear development predictable, rapidly scalable, and project financeable for the first time in history.

“We're demonstrating that the future of nuclear energy isn't a decade away and doesn’t take a leap of faith on technology or construction execution, it’s being built right now.”

The investment from Constellation Technology Ventures adds to $380 million already raised by the company and follows a strategic partnership with GE Vernova to develop a multi-gigawatt gas-to-nuclear project in Texas.

Read more: Blue Energy and GE Vernova plan gas-plus-nuclear plant in Texas

Blue Energy could begin early site works on the Texas project this year, with a final investment decision planned for 2027.

The company says it has secured a Nuclear Regulatory Commission licensing milestone that will support delivery of power in 48 months or less through its phased gas-to-nuclear deployment strategy.