The Philippines’ largest power distributor, Meralco, is searching for a new partner for small modular reactor (SMR) development following the bankruptcy of U.S.-based Ultra Safe Nuclear Corporation (USNC). U.S. firm NuScale Power and several South Korean companies are now being considered as potential replacements.
According to the Philippine Daily Inquirer on March 24, Ronnie L. Aperocho, Executive Vice President of Meralco, stated, “The partnership with USNC has not progressed due to their financial difficulties,” adding, “We are in talks with multiple parties, but legislative approval will be crucial for any real progress.”
USNC, known for developing Micro Modular Reactor (MMR) technology based on fourth-generation ultra-safe gas-cooled systems, had signed a research agreement with Meralco in November 2023 to explore MMR deployment in the Philippines. This technology has gained attention for its safety advantages among small nuclear reactor options.
In May, Aboitiz Power, another major energy firm in the Philippines, visited USNC to explore potential collaboration. President Ferdinand Marcos Jr. met with USNC executives in both 2023 and 2024, highlighting strong national interest in the partnership.
However, USNC filed for Chapter 11 bankruptcy protection in the U.S. last October and began restructuring. As part of this process, it sold its core MMR technology to Nano Nuclear Energy for approximately $8.5 million.
With the USNC deal collapsed, Meralco is now considering other options. NuScale Power is among the frontrunners, having signed a memorandum of understanding (MOU) with Meralco in November 2023 to explore building up to 430MW of SMR capacity by 2031.
South Korean companies are also gaining attention. The Department of Energy’s Nuclear Energy Division in the Philippines has previously expressed positive views on South Korea’s SMR technology in media interviews.
The Philippines is already collaborating with South Korea on reviving the Bataan Nuclear Power Plant. In October 2023, Korea Hydro & Nuclear Power signed an MOU for a feasibility study on restarting the facility. Meralco is also working with Doosan Enerbility in areas such as nuclear energy, SMRs, and gas turbines to enhance the country’s power infrastructure.
