Not Oklo. Not X-Energy. This SMR Stock Just Signed a Contract to Start Building Reactor Components.

Small modular reactors (SMRs) are gaining attention for their potential to provide cheaper, safer, flexible, and low-emission nuclear power through standardized manufacturing. Companies like Oklo, X-energy, and NuScale Power are rapidly building manufacturing capacity, securing regulatory approvals, and signing commercial agreements.

NuScale Power recently signed a manufacturing agreement with South Korean Doosan Enerbility to begin fabricating key reactor components for its NuScale Power Module. This move positions NuScale as the only SMR developer with a Standard Design Approval from the Nuclear Regulatory Commission, a crucial hurdle for commercial operations.

The agreement also allows NuScale to secure pressure vessels and begin building ahead of its order book, which currently lacks a major anchor customer. With an SDA, NuScale can meet its target of early 2030s commercial operation. Doosan Enerbility is a specialized supplier of nuclear components, while X-energy has also signed a 16-unit capacity reservation agreement with NuScale.

However, X-energy's agreement follows major customer agreements, such as Dow Inc.'s Texas plant and Amazon's backing for its Xe-100 SMRs. NuScale currently has one approved project in Romania for six modules, working with ENTRA1 to serve as a project developer, financier, and operator. ENTRA1 and the Tennessee Valley Authority are exploring a 6 gigawatt SMR deployment program, which would be the largest SMR deployment in U.S. history.

While NuScale's move to secure manufacturing capacity is encouraging, more firm commercial commitments are needed for the company to become less speculative in the nuclear energy industry.