Government funding of up to $226 million to develop small modular nuclear reactor technology will go to an Oregon firm instead of a group that included Ameren Missouri.

The Energy Department funding, announced Thursday, will go to NuScale Power, of Portland. NuScale and the government will move next to negotiate an agreement that lays out a five-year funding program.

Westinghouse Elecrtric Co. and Ameren Missouri had sought the funding to move ahead with plans for small modular reactors that could begin producing electricity by 2025.

Ameren Missouri and Westinghouse said in April they would pursue federal funding of a small-scale nuclear reactor that could be built in central Missouri. The companies sought a similar grant last year. But the Energy Department chose then to fund a consortium led by Babcock & Wilcox, known for making nuclear reactors for ships and submarines.

“As a result of the DOE’s decision, we are stepping back and considering our alternatives as we continue to focus on maintaining all generation options for a cleaner energy portfolio to meet Missouri’s energy needs in the future,” Wood said. “Ameren Missouri still considers the development, manufacturing and construction of SMRs to be an important initiative to help create a cleaner energy portfolio for our state and our country.”

Irl Scissors, executive director of Missourians for a Balanced Energy Future, said the Westinghouse project would have enhanced Missouri’s clean energy options and produced thousands of jobs.

“This is a great loss for Missouri,” he said in a statement. “As this state continues to forge new ground in diversifying its clean and renewable energy sources, there’s no doubt that the (small modular reactor) opportunity would have put us on the map as a global leader in this new technology.

“I remain hopeful that Westinghouse and its utility partners still see Missouri as a viable option to develop SMRs even without the government grant. The economic development and job creation potential is too great to dismiss.”

Tim Bryant covers commercial real estate, development and other business stories for the Post-Dispatch. He blogs at Building Blocks, the Post-Dispatch development blog.