NuScale Power Partners with ENTRA1 for TVA Deployment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- Revenue Growth Potential: NuScale Power's agreement with ENTRA1 Energy to deploy up to 6 gigawatts of SMRs at TVA-operated plants is expected to significantly enhance future revenue potential, although current revenues remain in the early stages.
- Market Position Analysis: NuScale Power has received design approval for its SMRs in the U.S., marking its leading position in the nuclear energy market, despite facing investor scrutiny over milestone payments, which could impact its short-term financing capabilities.
- Microreactor Development: Nano Nuclear Energy is developing portable microreactors and has submitted a construction permit application to the NRC, aiming to begin testing in 2027 if approved, although its first reactor is not expected to launch before 2030, indicating a long-term market strategy.
- Industry Competitive Landscape: Despite the emphasis on the technological potential of both NuScale and Nano Nuclear, their current revenues are zero, reflecting the start-up nature of the next-generation nuclear sector, necessitating cautious investment decisions regarding their commercialization progress.
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Analyst Views on SMR
Wall Street analysts forecast SMR stock price to rise
13 Analyst Rating
5 Buy
6 Hold
2 Sell
Hold
Current: 11.400
Low
18.50
Averages
32.77
High
60.00
Current: 11.400
Low
18.50
Averages
32.77
High
60.00
About SMR
NuScale Power Corporation is a provider of proprietary advanced small modular reactor (SMR) nuclear technology. The NuScale Power Module, the Company's SMR technology, is a small pressurized water reactor that can generate approximately 77 megawatts of electricity (MWe) or 250 megawatts thermal (gross) and can be scaled to meet customer needs through an array of flexible configurations of up to 924 MWe (12 modules) of output. In addition to the sale of NPMs, it offers a diversified suite of services throughout the development and operating life of the power plant. The Company's suite of services is planned to include licensing support, testing, training, fuel supply services and program management, among others. It serves a range of customers consisting of domestic and international governments, utilities, state-owned enterprises and technology and industrial companies in need of carbon-free, reliable energy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NuScale Power Approaches Critical Growth Milestone
- Major Partnership Agreement: NuScale Power has signed a deal with ENTRA1 and the Tennessee Valley Authority to build a 6-gigawatt small modular nuclear reactor, which, if successful, would become the largest in the U.S. and potentially the world, significantly enhancing the company's market position.
- Financing Challenges: ENTRA1 has received $25 billion in government funding to expand energy infrastructure, but its lack of experience and transparency in the nuclear sector poses risks for NuScale, potentially impacting its stock performance due to reliance on this partnership.
- Future Outlook: NuScale's CEO expects a power purchase agreement (PPA) to be finalized by the end of 2026, which would provide crucial legal assurance for the project's timeline and viability, potentially triggering significant milestone payments.
- Market Reaction: Although the uncertainty surrounding the project has pressured NuScale's stock price, achieving the PPA could rapidly improve market conditions, boosting investor confidence and driving stock price increases.
See More
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- Active Trading Volume: The total pre-market volume stands at 139,238,647 shares, indicating a high level of market participation that could influence liquidity and price volatility post-open.
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Oklo Positioned as Potential Leader in Small Modular Reactors
- Market Leadership: BofA analyst Singh highlighted that Oklo, with its differentiated vertically integrated 'build-own-operate' model, is positioned as a potential early leader in small modular reactors, showcasing its strategic advantage in the nuclear energy market.
- Strong Financial Position: Oklo boasts a robust balance sheet with substantial cash reserves and zero debt, providing stable funding for its research and development, which enhances investor confidence in its long-term growth prospects.
- Retail Investment Surge: Over the past 24 hours, message volumes around Oklo surged 150% on Stocktwits, indicating strong retail investor interest in nuclear energy stocks, which contributed to a 2.7% increase in its premarket share price.
- Commercial Agreement Progress: Oklo has secured a binding power agreement of approximately 1.2 GWe with Meta Platforms and amassed a pipeline exceeding 14 GWe under non-binding customer letters, with early commercial validation further solidifying market confidence in its future growth.
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NuScale Power's TVA Collaboration Emerges as Key Growth Catalyst
- Commercialization Catalyst: NuScale Power's collaboration with the Tennessee Valley Authority (TVA) and ENTRA1 Energy is advancing, potentially unlocking up to 6 gigawatts of nuclear deployment, which could become the largest nuclear project in U.S. history, significantly enhancing the company's market position.
- Power Purchase Agreement Progress: The parties are nearing a definitive power purchase agreement (PPA), and once finalized, NuScale expects to quickly initiate site-specific licensing work and OEM contracts, leading to early revenue generation and improved financial stability.
- Regulatory Advantage: NuScale has secured U.S. Nuclear Regulatory Commission (NRC) approvals for two small modular reactor designs, providing a competitive edge as customers increasingly prefer commercially deployable technologies over experimental options.
- Financing Support Potential: The project may receive investment backing from Japan and South Korea, particularly under the $550 billion U.S.-Japan investment framework, which will provide funding assurance for the TVA project and further propel the company's strategic development.
See More
NuScale Power Faces Major Turning Point
- Major Partnership Agreement: NuScale Power has entered into a deal with ENTRA1 and the Tennessee Valley Authority to construct a 6-gigawatt small modular nuclear reactor, which, if successful, would become the largest in the U.S. and potentially the world, significantly enhancing the company's competitive position in the nuclear energy market.
- Funding Prospects: ENTRA1 has been selected by the U.S. government to receive $25 billion in funding for scaling new energy infrastructure, part of a $550 billion agreement with Japan aimed at meeting rapidly growing energy demands, potentially providing crucial support for NuScale's project.
- Project Uncertainty: Despite optimistic funding prospects, ENTRA1's lack of experience in the nuclear sector and low information transparency raise investor concerns about its ability to successfully complete the project, putting pressure on NuScale's stock price.
- Future Outlook: NuScale's CEO expects a power purchase agreement (PPA) to be resolved by the end of 2026, which would provide critical clarity on the project's timeline and viability, and if successful, could significantly improve NuScale's market performance and stock price.
See More
Investment Analysis of Small Modular Reactor Companies
- Oklo's Strong Financials: Oklo boasts $2.5 billion in cash with no debt, providing a solid financial foundation despite not yet generating revenue, and it aims to deploy its Aurora microreactor by the end of 2027 to serve data centers and industrial facilities.
- NuScale's Legal Challenges: NuScale, the only SMR company with design certification from the U.S. Nuclear Regulatory Commission, is currently facing a class action lawsuit alleging it misled investors, which could significantly impact its reputation and finances, contributing to a nearly 30% drop in stock price year-to-date.
- Market Performance Comparison: While Oklo's stock has increased by 40% over the past year, it has still seen a decline of over 20% year-to-date, reflecting the high volatility in the small modular reactor sector, necessitating a high risk tolerance from investors.
- Investment Outlook Assessment: Currently, Oklo is viewed as the safer investment option with long-term growth potential and high-profile partners like Meta Platforms, whereas NuScale's legal issues increase its investment risk, warranting careful evaluation.
See More
NuScale Power Approaches Critical Growth Milestone
- Major Partnership Agreement: NuScale Power has signed a deal with ENTRA1 and the Tennessee Valley Authority to build a 6-gigawatt small modular nuclear reactor, which, if successful, would become the largest in the U.S. and potentially the world, significantly enhancing the company's market position.
- Financing Challenges: ENTRA1 has received $25 billion in government funding to expand energy infrastructure, but its lack of experience and transparency in the nuclear sector poses risks for NuScale, potentially impacting its stock performance due to reliance on this partnership.
- Future Outlook: NuScale's CEO expects a power purchase agreement (PPA) to be finalized by the end of 2026, which would provide crucial legal assurance for the project's timeline and viability, potentially triggering significant milestone payments.
- Market Reaction: Although the uncertainty surrounding the project has pressured NuScale's stock price, achieving the PPA could rapidly improve market conditions, boosting investor confidence and driving stock price increases.
See More
NASDAQ 100 Pre-Market Indicator Rises by 358.18
- Market Indicator Surge: The NASDAQ 100 Pre-Market Indicator increased by 358.18 points to 29,839.82, reflecting investor optimism that may indicate strong performance at the market open.
- Active Trading Volume: The total pre-market volume stands at 139,238,647 shares, indicating a high level of market participation that could influence liquidity and price volatility post-open.
- Nokia's Strong Performance: Nokia Corporation (NOK) shares rose by $0.20 to $15.67 with a trading volume of 21,596,173 shares, hitting a 52-week high, reflecting market confidence in its future growth prospects.
- Redwire Corporation Recommendation: Redwire Corporation (RDW) shares increased by $2.36 to $19.85 with 8,003,091 shares traded, and Zacks reports its current mean recommendation is in the 'buy range', indicating analysts' optimism about its outlook.
See More
Oklo Positioned as Potential Leader in Small Modular Reactors
- Market Leadership: BofA analyst Singh highlighted that Oklo, with its differentiated vertically integrated 'build-own-operate' model, is positioned as a potential early leader in small modular reactors, showcasing its strategic advantage in the nuclear energy market.
- Strong Financial Position: Oklo boasts a robust balance sheet with substantial cash reserves and zero debt, providing stable funding for its research and development, which enhances investor confidence in its long-term growth prospects.
- Retail Investment Surge: Over the past 24 hours, message volumes around Oklo surged 150% on Stocktwits, indicating strong retail investor interest in nuclear energy stocks, which contributed to a 2.7% increase in its premarket share price.
- Commercial Agreement Progress: Oklo has secured a binding power agreement of approximately 1.2 GWe with Meta Platforms and amassed a pipeline exceeding 14 GWe under non-binding customer letters, with early commercial validation further solidifying market confidence in its future growth.
See More
NuScale Power's TVA Collaboration Emerges as Key Growth Catalyst
- Commercialization Catalyst: NuScale Power's collaboration with the Tennessee Valley Authority (TVA) and ENTRA1 Energy is advancing, potentially unlocking up to 6 gigawatts of nuclear deployment, which could become the largest nuclear project in U.S. history, significantly enhancing the company's market position.
- Power Purchase Agreement Progress: The parties are nearing a definitive power purchase agreement (PPA), and once finalized, NuScale expects to quickly initiate site-specific licensing work and OEM contracts, leading to early revenue generation and improved financial stability.
- Regulatory Advantage: NuScale has secured U.S. Nuclear Regulatory Commission (NRC) approvals for two small modular reactor designs, providing a competitive edge as customers increasingly prefer commercially deployable technologies over experimental options.
- Financing Support Potential: The project may receive investment backing from Japan and South Korea, particularly under the $550 billion U.S.-Japan investment framework, which will provide funding assurance for the TVA project and further propel the company's strategic development.
See More
NuScale Power Faces Major Turning Point
- Major Partnership Agreement: NuScale Power has entered into a deal with ENTRA1 and the Tennessee Valley Authority to construct a 6-gigawatt small modular nuclear reactor, which, if successful, would become the largest in the U.S. and potentially the world, significantly enhancing the company's competitive position in the nuclear energy market.
- Funding Prospects: ENTRA1 has been selected by the U.S. government to receive $25 billion in funding for scaling new energy infrastructure, part of a $550 billion agreement with Japan aimed at meeting rapidly growing energy demands, potentially providing crucial support for NuScale's project.
- Project Uncertainty: Despite optimistic funding prospects, ENTRA1's lack of experience in the nuclear sector and low information transparency raise investor concerns about its ability to successfully complete the project, putting pressure on NuScale's stock price.
- Future Outlook: NuScale's CEO expects a power purchase agreement (PPA) to be resolved by the end of 2026, which would provide critical clarity on the project's timeline and viability, and if successful, could significantly improve NuScale's market performance and stock price.
See More
Investment Analysis of Small Modular Reactor Companies
- Oklo's Strong Financials: Oklo boasts $2.5 billion in cash with no debt, providing a solid financial foundation despite not yet generating revenue, and it aims to deploy its Aurora microreactor by the end of 2027 to serve data centers and industrial facilities.
- NuScale's Legal Challenges: NuScale, the only SMR company with design certification from the U.S. Nuclear Regulatory Commission, is currently facing a class action lawsuit alleging it misled investors, which could significantly impact its reputation and finances, contributing to a nearly 30% drop in stock price year-to-date.
- Market Performance Comparison: While Oklo's stock has increased by 40% over the past year, it has still seen a decline of over 20% year-to-date, reflecting the high volatility in the small modular reactor sector, necessitating a high risk tolerance from investors.
- Investment Outlook Assessment: Currently, Oklo is viewed as the safer investment option with long-term growth potential and high-profile partners like Meta Platforms, whereas NuScale's legal issues increase its investment risk, warranting careful evaluation.
See More
