Investor excitement is high for new nuclear technologies, but challenges like cost structure remain

From Investing.com: 2024-11-30 05:00:00

The momentum behind new nuclear technologies is rapidly growing, with Jefferies analysts reporting investor excitement at an all-time high. Small modular reactor (SMR) companies now have “tens of billions in equity value,” thanks to DOE support, commercial partnerships, and licensing progress. X-Energy leads with two commercial orders, but cost structure remains a challenge.

Jefferies notes that scale is critical for success in new nuclear technologies, as it helps de-risk technology and lower costs for customers. While X-Energy is currently the most advanced with commercial orders, challenges such as inflation, labor costs, and interest rates persist. Few companies disclose their levelized cost of energy (LCOE), potentially hindering widespread adoption.

Non-utility entities are expected to lead in deploying new nuclear technologies, with constraints in the nuclear fuel supply chain and uncertainties in uranium processing posing challenges for both large and small reactors. Jefferies anticipates significant developments, including nuclear-powered data center announcements by early 2025, with investment opportunities from companies like Talen Energy and Vistra.



Read more at Investing.com: ‘Are we near the rebirth of new nukes?’ By Investing.com