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Can Industrial Heat Demand Drive Growth for NuScale Stock?
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Key Takeaways
NuScale's 12-module plant could deliver 3 gigawatts of thermal energy as steam for industrial applications.
A 2025 study found NuScale's proposed systems could potentially cut chemical plant CO2 emissions by 80%-90%.
SMR is developing steam compression technology to expand its potential industrial applications.
NuScale Power Corporation (SMR - Free Report) is exploring industrial heat as a use for its small modular reactors. Factories need heat to refine crude oil, produce chemicals and manufacture fertilizers, with much of that energy coming from fossil fuels. According to a U.S. Department of Energy analysis cited by NuScale, process heating accounted for 51% of manufacturing energy use in 2018. NuScale says a plant with 12 Power Modules could supply 3 gigawatts of thermal energy as superheated steam. This could give industrial customers another way to meet their heat needs while reducing emissions.
Industrial facilities need steam at specific temperatures and pressures, making it difficult to replace conventional boilers. NuScale has been studying how its reactors could meet those requirements. In a 2025 assessment published with Oak Ridge National Laboratory, several proposed systems were found capable of serving a large chemical facility while potentially cutting carbon dioxide emissions by 80% to 90%. NuScale is also working with Ebara Elliott Energy on a high-temperature steam compressor. The planned system would use equipment to raise reactor-supplied steam to 500°C or more, making it suitable for additional industrial uses.
These projects could open another market for NuScale, although commercial adoption remains uncertain. Its reactor design supports an emergency planning zone at the plant boundary, allowing installations closer to factories and reducing heat lost during transport. The company has studied ways to supply electricity and steam for hydrogen and ammonia production. However, these studies do not amount to industrial sales. NuScale must demonstrate its systems at commercial scale, secure customers and arrange financing before process heat can become a revenue source. Successful projects could improve the business outlook for SMR stock.
NuScale is not alone in exploring nuclear energy for industrial heat applications. Other advanced nuclear developers are also working on smaller reactor designs that could supply both electricity and heat to industrial facilities. As industries look for ways to reduce their dependence on fossil fuels, demand for such technologies could increase, creating new business opportunities while intensifying competition in the nuclear energy market.
Other Nuclear Developers Target Heat and Power Applications
NANO Nuclear Energy (NNE - Free Report) is targeting applications where reliable, high-temperature energy can support power-intensive industrial operations. NANO Nuclear Energy says its KRONOS MMR uses high-temperature gas-cooled reactor technology and is designed for deployment across data centers, industrial and defense-related customers. Its compact, modular architecture and use of TRISO fuel could support co-located or off-grid applications. NANO Nuclear Energy is also building partnerships to support future commercial deployment.
Meanwhile, Oklo Inc. (OKLO - Free Report) is taking a similar approach by designing its Aurora powerhouses to provide both electricity and usable heat. OKLO sees this combination as part of a broader integrated nuclear platform spanning power, fuel and isotopes. OKLO is already developing an Aurora application at Eielson Air Force Base that is intended to supply electricity and heat, demonstrating how advanced reactors could serve facilities with simultaneous thermal and power requirements. OKLO also plans to own and operate these assets.
The Zacks Rundown on NuScale Power
Shares of SMR have lost some 55% over the past six months.
Image Source: Zacks Investment Research
NuScale Power currently has an average brokerage recommendation of 2.79 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.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for SMR’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
Can Industrial Heat Demand Drive Growth for NuScale Stock?
Key Takeaways
NuScale Power Corporation (SMR - Free Report) is exploring industrial heat as a use for its small modular reactors. Factories need heat to refine crude oil, produce chemicals and manufacture fertilizers, with much of that energy coming from fossil fuels. According to a U.S. Department of Energy analysis cited by NuScale, process heating accounted for 51% of manufacturing energy use in 2018. NuScale says a plant with 12 Power Modules could supply 3 gigawatts of thermal energy as superheated steam. This could give industrial customers another way to meet their heat needs while reducing emissions.
Industrial facilities need steam at specific temperatures and pressures, making it difficult to replace conventional boilers. NuScale has been studying how its reactors could meet those requirements. In a 2025 assessment published with Oak Ridge National Laboratory, several proposed systems were found capable of serving a large chemical facility while potentially cutting carbon dioxide emissions by 80% to 90%. NuScale is also working with Ebara Elliott Energy on a high-temperature steam compressor. The planned system would use equipment to raise reactor-supplied steam to 500°C or more, making it suitable for additional industrial uses.
These projects could open another market for NuScale, although commercial adoption remains uncertain. Its reactor design supports an emergency planning zone at the plant boundary, allowing installations closer to factories and reducing heat lost during transport. The company has studied ways to supply electricity and steam for hydrogen and ammonia production. However, these studies do not amount to industrial sales. NuScale must demonstrate its systems at commercial scale, secure customers and arrange financing before process heat can become a revenue source. Successful projects could improve the business outlook for SMR stock.
NuScale is not alone in exploring nuclear energy for industrial heat applications. Other advanced nuclear developers are also working on smaller reactor designs that could supply both electricity and heat to industrial facilities. As industries look for ways to reduce their dependence on fossil fuels, demand for such technologies could increase, creating new business opportunities while intensifying competition in the nuclear energy market.
Other Nuclear Developers Target Heat and Power Applications
NANO Nuclear Energy (NNE - Free Report) is targeting applications where reliable, high-temperature energy can support power-intensive industrial operations. NANO Nuclear Energy says its KRONOS MMR uses high-temperature gas-cooled reactor technology and is designed for deployment across data centers, industrial and defense-related customers. Its compact, modular architecture and use of TRISO fuel could support co-located or off-grid applications. NANO Nuclear Energy is also building partnerships to support future commercial deployment.
Meanwhile, Oklo Inc. (OKLO - Free Report) is taking a similar approach by designing its Aurora powerhouses to provide both electricity and usable heat. OKLO sees this combination as part of a broader integrated nuclear platform spanning power, fuel and isotopes. OKLO is already developing an Aurora application at Eielson Air Force Base that is intended to supply electricity and heat, demonstrating how advanced reactors could serve facilities with simultaneous thermal and power requirements. OKLO also plans to own and operate these assets.
The Zacks Rundown on NuScale Power
Shares of SMR have lost some 55% over the past six months.
NuScale Power currently has an average brokerage recommendation of 2.79 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.
See how the Zacks Consensus Estimate for SMR’s earnings has been revised over the past 90 days.
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.