NuScale Power: A risky but promising bet on the future of nuclear power

NuScale Power $SMR is a start-up focused on small modular nuclear reactors . It is a highly speculative investment as the company is still in a loss-making phase and is yet to see the first commercial deployment of its technology. But if NuScale succeeds, it could become a pioneer in modern nuclear power.

Why NuScale could be an interesting investment:

Small modular reactors as the future of nuclear power

Traditional nuclear power plants are expensive and take years to build (e.g. the Vogtle 3 and 4 reactors in the US took 10+ years to build and doubled in cost).

SMR reactors are smaller, more flexible and can be manufactured in a factory, reducing construction time and costs.

Lower initial investment - customers don't have to build a giant plant, but can start with one reactor and add more as needed.

Improved safety through passive safety systems.

Proven technology and regulatory approval

$SMR does not develop entirely new technology, but improves existing technology → faster transition to commercial phase.

The only SMR technology certified by the US NRC (Nuclear Regulatory Commission) → first-mover advantage.

Approaching commercial deployment

First commercial project could be approved by the end of 2025 (nuclear power plant in Romania).

The company is already producing key components, indicating that it is ready for implementation.

If the project is successful, $SMR could open the door to further contracts.

Risks and challenges

$SMR is still in a loss-making phase - revenues will depend on future contracts.

Projects can take years to approve and fund - political and regulatory uncertainty.

Competition - although $SMR has a head start, other companies (e.g. TerraPower backed by Bill Gates) are also working on SMR technologies.

Cost and manufacturing process - if reactors are more expensive or slower to produce, this may negatively impact the business model.

If NuScale succeeds, it can pioneer the nuclear power revolution and secure a dominant position in the SMR market. On the other hand, there are still regulatory, financial and technological risks that could slow or damage the company.