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How ENTRA1 Is Supporting NuScale's Commercial Nuclear Push

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Key Takeaways

  • NuScale and ENTRA1 are advancing commercialization through flexible project ownership and financing models.
  • ENTRA1 is pursuing up to 6 GW of NuScale reactor capacity under its agreement with TVA.
  • NuScale is targeting hydrogen, desalination, process heat, data centers and other energy-intensive users.

NuScale Power Corporation (SMR - Free Report) is using its partnership with ENTRA1 Energy to advance commercialization of its small modular reactor technology. ENTRA1 serves as NuScale’s exclusive global strategic partner, while NuScale supplies its approved reactor technology and related services. ENTRA1 develops and finances projects and, depending on the structure, may own and operate the plants. The model gives customers flexibility through long-term power purchase agreements, build-own-transfer structures or utility-owned arrangements.

The partnership also broadens NuScale’s addressable market beyond traditional power generation. ENTRA1 and NuScale are targeting applications such as hydrogen production, water desalination and industrial process heat, while NuScale also sees opportunities tied to data centers and other energy-intensive customers. The company’s 77-MWe module has NRC approval, uses conventional low-enriched uranium and is supported by a developing supplier network, positioning NuScale to move more quickly once commercial agreements are secured.

The key near-term opportunity is ENTRA1’s agreement with the Tennessee Valley Authority for potential deployment of up to 6 gigawatts of NuScale small modular reactor capacity. Discussions are continuing toward a definitive power purchase agreement, which NuScale describes as potentially supporting the largest nuclear deployment program in U.S. history. Management said talks are progressing and that once PPAs are finalized, NuScale is ready to begin licensing, front-end engineering and equipment-contract activities, making TVA an important test of the partnership’s commercialization model.

How Other Advanced Nuclear Companies Are Approaching the Market

Oklo Inc. (OKLO - Free Report) is developing liquid-metal-cooled fast reactors that use metal fuel, a technology with decades of operating history. OKLO says its reactors rely on inherent safety features that allow them to respond naturally to changing conditions. OKLO is also building capabilities in fuel recycling, allowing used nuclear fuel to become a future energy source. Beyond electricity generation, OKLO is expanding into advanced fuel services and radioisotope production, creating a broader long-term business model.

NANO Nuclear Energy (NNE - Free Report) is developing compact microreactors designed for applications where large nuclear plants are impractical. NANO Nuclear's portfolio includes the KRONOS Micro Modular Reactor, the ZEUS battery reactor and the portable LOKI microreactor. NANO Nuclear is targeting data centers, industrial facilities, military sites, remote communities and microgrids. By focusing on smaller, modular reactor designs, NANO Nuclear aims to provide reliable, carbon-free power that can be deployed more quickly and flexibly than traditional nuclear plants.

The Zacks Rundown on NuScale Power

Shares of SMR have lost 16.1% over the past six months.

Zacks Investment Research Image Source: Zacks Investment Research

NuScale Power currently has an average brokerage recommendation of 2.68 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms. 

Zacks Investment Research Image Source: Zacks Investment Research

See how the Zacks Consensus Estimate for SMR’s earnings has been revised over the past 90 days.

Zacks Investment Research Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #4 (Sell).

 You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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