) recently announced that its independently managed operating
unit NuScale Power LLC has received funding for the development
of its nuclear small modular reactor (SMR) technology from the
U.S. Department of Energy (DOE). The total cost of developing the
SMR technology is estimated to be around $452 million, 50% of
which is expected to be covered by the DOE as per the five-year
DOE will be funding the engineering as well as design
certification of the SMR technology that is designed to deliver
an innovative, safer and reliable alternative for energy
production. Additionally, it has a potential to scale up the
production in tune with increased demands.
The development of SMR will require a number of competent
manufacturers and supply chain partners. Apart from these, Fluor
and NuScale are collaborating to consider the inclusion of new
investors in the project and are in the process of evaluating the
Fluor has become a majority shareholder in NuScale after
making an investment of more than $30 million in Oct 2011.
As per the contract, NuScale retained its position as an
independent entity. Fluor has exclusive rights for providing core
services that include engineering and construction for the
development of SMR technology and its upcoming facilities.
DOE had earlier funded the conception of this new technology
at Oregon State University in 2000-2003. The technology has a
promising potential that is likely to be augmented by the
technical expertise of Fluor and timely funds from DOE.
Fluor currently has a Zacks Rank #3 (Hold). Some other
better-ranked energy and utility stocks include
AO Smith Corp.
). All these three stocks carry a Zacks Rank #1 (Strong Buy).
SMITH (AO) CORP (AOS): Free Stock Analysis
ENERSYS INC (ENS): Free Stock Analysis Report
FLUOR CORP-NEW (FLR): Free Stock Analysis
VSE CORP (VSEC): Free Stock Analysis Report
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