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Is the TVA-ENTRA1 Project NuScale's Biggest Growth Catalyst Yet?
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Key Takeaways
SMR says TVA-ENTRA1 talks could support up to 6 GW of nuclear capacity using its technology.
NuScale holds NRC approvals for two SMR designs under Part 52, positioning it as deployable.
ENTRA1 is named in a $550B U.S.-Japan framework. Korea also proposed $350B for nuclear/AI.
For NuScale Power (SMR - Free Report) , the TVA-ENTRA1 opportunity is shaping up as the company’s most important commercialization catalyst. Discussions tied to the Tennessee Valley Authority (“TVA”) project continue to advance and could potentially unlock the next phase of growth for the small modular reactor (“SMR”) developer. TVA and ENTRA1 Energy are working toward a deployment program that could involve up to 6 gigawatts of nuclear capacity using NuScale technology. The company believes the initiative could become the largest nuclear deployment program in U.S. history.
Talks are progressing toward a definitive power purchase agreement (PPA). Once the PPA is finalized, the company expects activity to accelerate quickly through site-specific licensing work, pre-FEED activities, and eventually OEM contracts tied to NuScale Power Modules. These early-stage activities alone could begin contributing meaningful revenues even before full reactor deployment begins.
NuScale believes its regulatory readiness gives it an edge in securing these large-scale contracts. Unlike many advanced nuclear peers still pursuing earlier-stage licensing pathways, NuScale already holds U.S. Nuclear Regulatory Commission (“NRC”) approvals for two SMR designs under the Part 52 framework. This acts as a major differentiator because customers increasingly prioritize technologies that are commercially deployable rather than still experimental.
Financing also appears to be a critical piece of the TVA story. On the first-quarter earnings call, management pointed to potential support from both Japanese and Korean investment frameworks aimed at funding strategic U.S. industries, including nuclear power and AI infrastructure. ENTRA1 was named in the $550 billion U.S.-Japan investment framework, which could help support financing for the TVA project. South Korea has also proposed a $350 billion investment push into U.S. strategic industries, including nuclear energy, AI and semiconductors.
NuScale does face financing, execution and timeline risks. But the TVA opportunity is the company’s biggest commercial breakthrough yet. If successful, the project would validate years of regulatory work, supply-chain investment and commercialization efforts.
Oklo and NANO Nuclear Push Commercial Deployment Plans
Oklo Inc. (OKLO - Free Report) is also advancing commercialization efforts in the emerging advanced nuclear market. Last year, the company broke ground on its first Aurora powerhouse project at Idaho National Laboratory under the DOE’s Reactor Pilot Program and is targeting initial operations in late 2027 or early 2028. Oklo has also benefited from rising AI-driven power demand themes, with Meta expanding a planned Ohio deployment vision to 1.2 gigawatts under a power agreement structure designed to support early-stage development. In addition, Oklo has partnered with NVIDIA on nuclear fuel and infrastructure research initiatives tied to future AI data center energy needs.
NANO Nuclear Energy Inc. (NNE - Free Report) is also making regulatory progress in the advanced nuclear space. Last week, NRC formally accepted the company’s Construction Permit Application for its KRONOS micro modular reactor project at the University of Illinois Urbana-Champaign. NANO Nuclear believes KRONOS is the first commercially focused microreactor to reach this stage of the NRC review process. The review is expected to conclude in 2027, potentially allowing construction activities to begin in the second half of next year.
SMR's Price Performance, Valuation & Estimates
Shares of NuScale Power have declined more than 60% over the past year, underperforming the industry.
Image Source: Zacks Investment Research
In terms of trailing 12-month price/book, NuScale Power shares are trading at 3.52X.
Image Source: Zacks Investment Research
See how bottom-line estimates for SMR have been revised over the past 90 days.
Image Source: Zacks Investment Research
NuScale Power currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
Is the TVA-ENTRA1 Project NuScale's Biggest Growth Catalyst Yet?
Key Takeaways
For NuScale Power (SMR - Free Report) , the TVA-ENTRA1 opportunity is shaping up as the company’s most important commercialization catalyst. Discussions tied to the Tennessee Valley Authority (“TVA”) project continue to advance and could potentially unlock the next phase of growth for the small modular reactor (“SMR”) developer. TVA and ENTRA1 Energy are working toward a deployment program that could involve up to 6 gigawatts of nuclear capacity using NuScale technology. The company believes the initiative could become the largest nuclear deployment program in U.S. history.
Talks are progressing toward a definitive power purchase agreement (PPA). Once the PPA is finalized, the company expects activity to accelerate quickly through site-specific licensing work, pre-FEED activities, and eventually OEM contracts tied to NuScale Power Modules. These early-stage activities alone could begin contributing meaningful revenues even before full reactor deployment begins.
NuScale believes its regulatory readiness gives it an edge in securing these large-scale contracts. Unlike many advanced nuclear peers still pursuing earlier-stage licensing pathways, NuScale already holds U.S. Nuclear Regulatory Commission (“NRC”) approvals for two SMR designs under the Part 52 framework. This acts as a major differentiator because customers increasingly prioritize technologies that are commercially deployable rather than still experimental.
Financing also appears to be a critical piece of the TVA story. On the first-quarter earnings call, management pointed to potential support from both Japanese and Korean investment frameworks aimed at funding strategic U.S. industries, including nuclear power and AI infrastructure. ENTRA1 was named in the $550 billion U.S.-Japan investment framework, which could help support financing for the TVA project. South Korea has also proposed a $350 billion investment push into U.S. strategic industries, including nuclear energy, AI and semiconductors.
NuScale does face financing, execution and timeline risks. But the TVA opportunity is the company’s biggest commercial breakthrough yet. If successful, the project would validate years of regulatory work, supply-chain investment and commercialization efforts.
Oklo and NANO Nuclear Push Commercial Deployment Plans
Oklo Inc. (OKLO - Free Report) is also advancing commercialization efforts in the emerging advanced nuclear market. Last year, the company broke ground on its first Aurora powerhouse project at Idaho National Laboratory under the DOE’s Reactor Pilot Program and is targeting initial operations in late 2027 or early 2028. Oklo has also benefited from rising AI-driven power demand themes, with Meta expanding a planned Ohio deployment vision to 1.2 gigawatts under a power agreement structure designed to support early-stage development. In addition, Oklo has partnered with NVIDIA on nuclear fuel and infrastructure research initiatives tied to future AI data center energy needs.
NANO Nuclear Energy Inc. (NNE - Free Report) is also making regulatory progress in the advanced nuclear space. Last week, NRC formally accepted the company’s Construction Permit Application for its KRONOS micro modular reactor project at the University of Illinois Urbana-Champaign. NANO Nuclear believes KRONOS is the first commercially focused microreactor to reach this stage of the NRC review process. The review is expected to conclude in 2027, potentially allowing construction activities to begin in the second half of next year.
SMR's Price Performance, Valuation & Estimates
Shares of NuScale Power have declined more than 60% over the past year, underperforming the industry.
In terms of trailing 12-month price/book, NuScale Power shares are trading at 3.52X.
See how bottom-line estimates for SMR have been revised over the past 90 days.
NuScale Power currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.