NuScale Power Corporation (NYSE:SMR) is an energy stock with a proposition that only seems crazy on the surface: a small, modular nuclear reactor. Despite a new development that gets them closer to marketing its products, NuScale slipped a bit in Friday’s trading.
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The Nuclear Regulatory Commission certified the design of NuScale’s modular nuclear reactor. As the central body of standards for most anything nuclear-related in the United States, its word counts for a lot. Dubbed an “advanced light-water small modular nuclear reactor,” the device can put out 50 megawatts of power. The NRC also offered some context on just how much power is in a megawatt. For a conventional generator, one megawatt will power roughly “…400 to 900 homes in a year.”.
NuScale’s new reactor is something of a rarity. It’s only the seventh such reactor the United States has cleared for use. However, some don’t look for much value to come of this. The Institute for Energy Economics and Financial Analysis’ director of resource planning analysis, David Schlissel, notes that NuScale’s plan to generate nuclear power won’t do much better than current wind and solar applications. Schlissel also points out that small reactors have frequently seen cost overruns and delays that make them less viable.
Interestingly, NuScale insiders seem equally pessimistic as their confidence is considered Very Negative. Insiders sold $11.7 million worth of shares in the last three months.
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