Illinois Governor J. B. Pritzker just announced that Nano Nuclear Energy (NNE 5.33%) stock, a start-up that's developing nuclear microreactors, will establish a manufacturing and research and development facility near Chicago, Illinois.
The news drove Nano Nuclear stock up 8% through 10:10 a.m. ET Tuesday.
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Nano Nuclear's big Illinois news
The Reimagining Energy and Vehicles in Illinois program will provide Nano Nuclear with $6.8 million in tax incentives to host its new research and development (R&D) facility in Illinois, and Nano itself will invest $12 million in the project. Over time, Nano Nuclear plans to "construct, demonstrate, and ultimately commercialize our Kronos MMR Energy System."
Nano Nuclear describes Kronos as "a stationary high-temperature gas-cooled reactor that is in construction permit pre-application engagement with the U.S. Nuclear Regulatory Commission (NRC)."
In other words, it's not approved for construction or use yet -- but Nano is working on that.
Is Nano Nuclear stock a buy?
Today's announcement is one more step toward Nano Nuclear's goal of turning Kronos into a viable commercial nuclear product -- and not just Kronos. Nano is also developing at least two other kinds of nuclear reactors, a solid core battery reactor called Zeus and a portable reactor for spacecraft called Loki MMR. As if that weren't enough, Nano is also working to produce its own high-assay low-enriched uranium fuel (HALEU) and an "advanced fuel transportation" subsidiary for transporting HALEU from production plant to nuke plant.
So Nano Nuclear stock is juggling a lot of knives here. It's also burning a fair amount of cash -- nearly $23 million per year. The good news is that with more than $200 million net of cash, Nano Nuclear has the money it needs to survive if at least one of these bets works out for it.
Fingers crossed.
