For years, the U.S. government's interest in advancing renewable energy seemed to be synonymous with solar and wind power. On Monday, however, the Department of Energy revealed a new enthusiasm for facilitating the growth of nuclear power -- the type of nuclear power plants that NuScale Power (SMR 3.99%) is intent on developing itself. Investors took note of the announcement, and shares have powered higher throughout the week.
According to data provided by S&P Global Market Intelligence, shares of NuScale Power have risen 20.4% from the end of trading last week through 3 p.m. ET on Friday afternoon.
900 million reasons why NuScale Power investors are excited
Looking to spur development of innovative nuclear power plants, the Department of Energy announced a notice of intent to provide $900 million in funding to support the deployment of small modular reactors (SMRs). Unlike traditional nuclear power plants, SMRs are considered safer and easier to develop. In addition, they can supply power to a variety of customers and purposes including electric power, data centers, heating, desalination, and commercial-scale hydrogen production, among others.
In an acknowledgement of the government's interest in nuclear power, U.S. Secretary of Energy Jennifer M. Granholm stated, "Today's announcement will support early movers in the nuclear sector as we seek to scale up nuclear power and reassert American leadership in this critical energy industry."
A developer of SMR technology, NuScale presents itself as the only SMR to have its design certified by the U.S. Nuclear Regulatory Commission.
Is it time to fuel your holdings with NuScale Power?
It's unsurprising that shares of NuScale Power are jumping on this week's news that the government is taking a favorable approach to nuclear power. However, it would be foolhardy to buy shares of NuScale Power simply on this news. The company hasn't demonstrated the viability of its SMR in a commercial setting as it doesn't have a plant in operation, and there's no clear vision when it will have one operating in the future; therefore, an investment should only remain a possibility for those with an ample tolerance for risk.
