From the article: This is apparently a power purchase agreement. Terms are undisclosed, but the way it might work is that Google doesn't put in money now, but if Kairos successfully builds the...
From the article:
The tech giant said it will purchase power from a fleet of SMRs made by Kairos Power. Google said purchasing from multiple SMRs sends an “important demand signal to the market,” while making a long-term investment to accelerate commercialization.
This is apparently a power purchase agreement. Terms are undisclosed, but the way it might work is that Google doesn't put in money now, but if Kairos successfully builds the power plants and they go online, Google agrees to purchase the power. The funding comes from someone else (who takes the risk of project failure), but if it works out, they'll have a guaranteed customer.
A company signing a power purchase agreement takes the risk that the market price for electricity will fall by the time the plant comes online. Sometimes power purchase agreements are signed by utilities, but not this time.
From the article:
This is apparently a power purchase agreement. Terms are undisclosed, but the way it might work is that Google doesn't put in money now, but if Kairos successfully builds the power plants and they go online, Google agrees to purchase the power. The funding comes from someone else (who takes the risk of project failure), but if it works out, they'll have a guaranteed customer.
A company signing a power purchase agreement takes the risk that the market price for electricity will fall by the time the plant comes online. Sometimes power purchase agreements are signed by utilities, but not this time.
Here is the press release.