Korean nuclear power plant builder Doosan Enerbility saw its shares soar more than 16 percent Monday following a news report that it is likely to secure over 2 trillion won ($1.46 billion) worth of orders for NuScale Power’s 50 trillion won small modular reactor project in the US.

Its stock surged by 16.65 percent, closing at 21,300 won and reaching a 52-week high of 21,750 won during trading hours. Doosan Group’s stock also peaked at 218,500 won.

The report suggests that NuScale Power, an SMR designer in the US, has agreed to supply 24 SMRs to Standard Power, an information technology infrastructure company, starting in 2029. A NuScale Power official mentioned that they expect to finalize the agreement "in the first half of the year."

While Doosan Enerbility acknowledged ongoing discussions with NuScale, a company official described the reported figures as speculative.

"While we do anticipate a substantial order, the precise numbers appear to be based on a vague estimate. For instance, it's unclear how many SMRs Standard Power has agreed to purchase. Initially, there was mention of a project involving six SMRs, and it seems like this number was arbitrarily multiplied to 24," the official stated.

"Based on our current understanding and agreements, a single building can only house up to 12 SMRs. And assuming making two buildings could automatically accommodate 24 SMRs is also not accurate," he added.

Should the report prove accurate, however, it could signify a major development for the SMR market, potentially leading to a resurgence for nuclear power companies like Doosan Enerbility.

In 2019 and 2021, Doosan invested a total of $104 million in NuScale, which was then a startup, and agreed to supply key components for its projects. Doosan has since established the world's first dedicated SMR production line.