Shares of NuScale (SMR 12.38%) jumped on Monday, finishing the day up 12.8%. The jump comes as the S&P 500 (^GSPC 0.14%) and Nasdaq Composite (^IXIC 0.27%) both moved slightly higher.
Small modular reactors (SMR) stocks across the industry, including NuScale's, are up on the news that the U.K. and the Czech Republic are teaming up to explore opportunities to deploy SMRs in the central European country.
SMRs could be coming to the Czech Republic
On Monday, the two countries said they were exploring a deal that would include up to six Rolls-Royce SMRs exported to the Czech Republic. The announcement follows last month's pledge from the U.K. government to invest $2.5 billion in building SMR technology. While this news doesn't directly affect NuScale, it helps validate nuclear SMRs as a viable technology.
Image source: Getty Images.
NuScale could build in Idaho
A major wind farm project in Idaho was canceled by the Trump administration when Trump first took office. Now, in its place, the company that had been building the wind farm is proposing to have six NuScale SMRs built in its place. The six SMRs would in total produce 462 MW of power, roughly half the output of a standard legacy reactor. The company says it would be able to deliver power beyond Idaho to Oregon, Wyoming, Nevada, and California.
The deal would be significant if it goes through, and a major validation of a company still developing its technology. NuScale still has a lot to prove and must deliver a viable, working SMR. The stock could pay off, but it comes with significant risk.
