• NuScale Power Corporation recently announced a collaborative research program with Ebara Elliott Energy to develop and field test a commercial-scale high-temperature steam compressor that would integrate NuScale Power Modules with petrochemical plants requiring process heat, with the compressor project already underway and targeted for completion in 2027.
• This partnership could materially broaden NuScale’s potential use cases beyond electricity generation by positioning its small modular reactors as a source of industrial process heat for the petrochemical sector, potentially expanding its addressable market if the technology proves viable in real-world operations.
• We’ll now examine how this push to integrate NuScale’s small modular reactors into petrochemical process heat applications could influence its investment narrative.

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NuScale Power Investment Narrative Recap

To be comfortable owning NuScale, you have to believe its NRC approved small modular reactors can move from early projects to meaningful commercial deployment before cash burn and dilution bite too hard. The new Ebara Elliott Energy partnership expands the story beyond electricity into petrochemical process heat, but it does not change the near term reality that progress on firm contracts and funding remains the key catalyst, while liquidity and shareholder dilution are still the central risks.

The compressor collaboration fits alongside NuScale’s broader push to lock in real world use cases, echoing its FEED Phase 2 work on the RoPower project in Romania and its TVA and ENTRA1 frameworks. All of these initiatives speak to the same catalyst investors are watching: whether today’s interest and MOUs can turn into bankable, revenue generating projects that justify the ongoing investment in SMR manufacturing and long lead materials.

Yet beneath this potential, investors should be aware that NuScale’s rapid cash burn and the risk of further equity issuance could...

NuScale Power's narrative projects $330.7 million revenue and $36.7 million earnings by 2029. This requires 119.0% yearly revenue growth and a $392.5 million earnings increase from -$355.8 million today.

Uncover how NuScale Power's forecasts yield a $20.73 fair value, a 89% upside to its current price.

Exploring Other Perspectives

Compared with the baseline, the most bearish analysts were assuming revenue could actually shrink about 14% a year and still saw NuScale needing a very high 846 times earnings in 2028 to justify their US$15.00 target, so if you worry about ENTRA1’s concentration risk and project delays, this new petrochemical heat story may or may not be enough to shift that much more pessimistic view.

Explore 14 other fair value estimates on NuScale Power - why the stock might be worth over 5x more than the current price!

Form Your Own Verdict

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your NuScale Power research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.
• Our free NuScale Power research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NuScale Power's overall financial health at a glance.

No Opportunity In NuScale Power?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.