NuScale Wouldn't Own a Reactor in the Deal Driving Its Stock
The small modular reactor company's partner would own and manage the plants -- and it charges NuScale as the program advances.
Overview
NuScale Power's (NYSE:SMR) stock market value stands near $4 billion as of this writing. Nearly all of it rests on one program: the Tennessee Valley Authority's plan to add up to 6 gigawatts of nuclear power built on NuScale's small modular reactors. That could mean about 72 of the company's 77-megawatt modules -- the largest deployment of its kind in U.S. history if it converts.
But the agreement behind that program was signed by TVA and ENTRA1 Energy, NuScale's exclusive commercialization partner. NuScale wasn't a party to it.
Details
That detail, I'd argue, matters more than it seems, because the structure of the arrangement determines what a landed contract actually pays NuScale. And based on the companies' own releases and filings, what NuScale stands to collect is narrower than the growth stock's moves on TVA news suggest.
Source
Originally published at www.fool.com.