Next-Gen Clean Energy: Small Modular Reactor (SMR) Stocks (US & Japan)

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This is only a record of my personal analysis and the contents may contain errors or information that differs from the actual situation. Please understand in advance when viewing this site.

Introduction.

With the development of AI,NVIDIAInvestment in infrastructure infrastructure, including semiconductors and data centers, including
As AI technologies evolve and become more common, they require enormous amounts of computing power, and power consumption is increasing rapidly along with it.

In particular, training and operating large-scale AI models requires a substantial amount of electricity, making power supply a key issue in the diffusion of AI technology.

Renewable energy is expected to be a partial solution to this electricity demand, but at present it is limited in its ability to meet all of the energy needs of AI services.
This background highlights the challenge that the diffusion of AI technology is not feasible with green energy alone.

In this context, nuclear power generation, especially as distinct from conventional large nuclear reactors, is expected to be the next generation source of electricity supply.Small modular reactor (SMR)It is.

SMR is safer, more flexible, and more cost competitive than conventional nuclear power, and has the potential to provide a clean and stable power supply needed by many industries, including AI.

Power issues will be a long-term theme as technological innovation continues to advance. In this section, we will explain in detail how SMR works, its potential and benefits, and also investigate related issues that are currently attracting attention.

Personally, I have been paying attention to SMR-related issues and am considering them for future investments.

What is a small modular reactor (SMR)?

• Small modular reactors (SMR:(Small Modular Reactor) is a reactor that is smaller in size than conventional large reactors.The modularized design of the system allows it to be manufactured in a factory and assembled on site, rather than constructed on site. This is expected to significantly reduce construction costs and time.
• The greatest advantages of SMR are flexibility and safety.The small size facilitates cooling and reduces the risk of accidents. In addition, the number of modules can be adjusted according to the required amount of power generation, enabling scalable power generation according to demand. Furthermore, the system can be installed in urban areas and remote islands where it is difficult to construct power plants.
• There are also environmental benefits.SMRs can be used in conjunction with renewable energy sources to provide a stable power supply.In addition, like conventional nuclear reactors, it does not emit greenhouse gases and is therefore attracting attention as a technology that contributes to a carbon neutral policy.
• Major applications include not only the supply of electricity, but also the production of hydrogen and the supply of heat in industrial processes, which are expected to diversify energy sources and find application in new industries.
• The United States, Russia, and China are leading in this field, and demand is expected to continue to increase worldwide.

Why are small modular reactors so popular?

Small modular reactors (SMRs) have become popular because of the following technical and economic advantages

Improved safety

SMRs are smaller than conventional large reactors,Easy cooling means low risk of serious accidents such as meltdowns.They are also considered to be highly safe, with self-cooling functions and module-by-module control, and are being considered for installation in urban areas and densely populated areas.

Cost Reduction and Efficiency

SMRs are manufactured in modules at a factory and can be assembled on site, which significantly reduces construction costs and time compared to large reactors.In addition, the output can be flexibly adjusted as needed, enabling efficient power supply in response to demand.

Flexible installation locations

SMRs offer a wider choice of installation locations than conventional reactors. Remote locations, remote islands, and industrial areas due to their smaller design,Can be installed in locations not possible with conventional large reactorsThe flexibility of the system is This flexibility contributes to the stability of the electricity supply.

Contribution to carbon neutrality

Like renewable energy, SMRs are attracting attention as a clean energy source that does not emit greenhouse gases. In particular, as a supplemental power source to renewable energy, SMRs are highly regarded for their ability to provide a stable power supply that is not affected by weather conditions.

New Applications and Market Expansion

In addition to power supply,SMRs are also expected to expand into markets beyond the energy sector, as they can be used in a variety of applications, including industrial processes and hydrogen production.
In addition, the United States, Russia, and other countries around the world are actively working to develop SMRs, and they are expected to become increasingly popular.

For these reasons, SMR is gaining attention as a next-generation technology for the energy industry.

How much electricity will be consumed by the widespread use of AI?

Power consumption due to the widespread use of AI is increasing rapidly.
Training and operating AI models requires extensive computing resources, which tend to result in very high power consumption.

For example, training recent large-scale language models (LLMs) and deep learning models requires millions to billions of parameters, and the process requires enormous amounts of computing power. Specifically, the power used to train models such as GPT-3 is said to consume hundreds of times more energy than traditional small-scale AI models.

Studies have shown that in some cases, the energy consumption for training an AI model is equivalent to a long-distance flight in an airplane.
Particularly,Large-scale transformer-based models have been reported to consume hundreds of megawatt-hours (MWh) for their training, which is equivalent to the annual electricity consumption of several hundred average homes.
Furthermore, as AI technology becomes more widely deployed, the energy required for AI inference and response generation is becoming non-negligible.

Also,Power consumption in data centers supporting AI technologies is also increasing, and this has raised concerns about the environmental impact. Some predict that overall data center energy consumption will reach about 3% of global electricity consumption by 2025.

Along with the evolution of AI, optimization and efficiency of power consumption has also become an important issue, and energy-efficient hardware and models are being developed.

Thus, as the widespread use of AI is expected to continue to increase power consumption, environmental impact and energy efficiency are becoming increasingly important issues.

Therefore,Small modular reactors are expected to supply the electricity consumed by the AI.

What is the difference between a small modular reactor (SMR) and a conventional reactor?

Small modular reactors (SMRs) have several important differences compared to conventional reactors.

First, as the name suggests, SMRs are unique in that they are small and modular.
Conventional reactors are large facilities that supply large amounts of power at a time, though,SMRs can be operated with smaller units, and output can be adjusted by adding modules as needed.

In addition, SMRs are pre-manufactured in a factory and assembled on site, significantly reducing construction costs and time.

SMRs are also considered superior in terms of safety. Equipped with self-cooling and passive safety systems, they are designed to have a low risk of accidents in the event of loss of cooling water.

In other words,SMRs significantly reduce risk in the event of an accident compared to conventional modelsThe company has been

What are the advantages of small modular reactors (SMRs)?

The benefits of SMRs (small modular reactors) are manifold.

• Improved safety:.SMRs are smaller and more modular, making them easier to cool than larger reactors. Many designs have self-cooling capabilities, which lowers the risk of accidents such as meltdowns. In addition, the use of multiple modules provides high operational safety because even if one unit has a problem, the other modules can provide backup.
• Reduced costs:.SMRs are manufactured in modules at a factory and can be easily assembled on site. This shortens the construction period and significantly reduces construction costs compared to conventional large reactors. Another advantage is that power supply can be started with a small initial investment.
• Flexible installation location:.The small size allows for a wide range of installation location options. They can be installed in remote areas, remote islands, and urban areas where conventional large reactors cannot be installed. In particular, it is expected to be used in areas with limited demand for electricity or where the power grid is inadequately developed.
• EnvironmentalSMR can contribute to the realization of a carbon-neutral society when used in conjunction with renewable energy. It is also expected to work with other clean energy technologies, such as hydrogen production.
• Module-by-module extensibility:.Power generation can be increased by adding modules as needed. The amount of power generated can be flexibly adjusted to meet demand, enabling efficient power supply.
• Effects of nuclear nonproliferation:.Some SMR designs have introduced a system that allows spent fuel to be easily transported and safely removed. The risk of unauthorized use of nuclear materials and nuclear proliferation is reduced.

For these reasons, SMR is attracting attention from the energy industry and governments as a next-generation energy technology that can replace conventional nuclear power.

What are the disadvantages of SMR reactors?

The disadvantages of small modular reactors (SMRs) include the following

• Technical immaturity and cost:.SMR technology is still under development, and at this stage there are still technical challenges that need to be addressed before it can be commercialized on a large scale. In addition, initial construction costs are high and may be less cost competitive than existing energy sources.
• Regulatory and Licensing Issues:.Regulations for new technologies such as SMR are not yet in place in many countries; new regulatory standards for SMR need to be developed, which takes time and contributes to a longer road to commercialization.
• Radioactive Waste Disposal:.As is the case with nuclear power generation in general, SMRs cannot completely avoid the problem of radioactive waste disposal. In particular, even if the SMRs are small, radioactive waste will still be generated, requiring infrastructure for long-term waste management.
• Economic Size Constraints:.Because SMRs are small and modular, they can provide flexible power supply according to demand, but may not be suitable for large-scale power supply. Since the output per unit is smaller than that of large nuclear power plants, multiple modules may need to be installed to supply large-scale demand, which may result in cost and site constraints.

These disadvantages are not negligible compared to the many advantages of SMR technology, and the extent to which they can be overcome through future technological development and policy responses will be key to its widespread use.

What is the market size and future growth prospects for small modular reactors (SMRs)?

The market size and growth prospects for small modular reactors (SMRs) are expected to expand rapidly.
As the global energy supply and demand and decarbonization trends develop in the 2020s and 2030s, SMRs are expected to be in great demand due to their flexibility and safety features.

market scale

As of 2020, the SMR market was estimated to be around $400 million,By 2030, its market size is expected to grow significantly and could reach more than $10 billionThe company has been

According to specific estimates, 73 SMRs are under development worldwide, of which 18 are in the U.S., 17 in Russia, 8 in China, and 7 in Japan, with the U.S. and Russia in particular actively pursuing development.

growth factor

• Decarbonization Initiatives:.The global move toward carbon neutrality goals has boosted demand for SMRs as a clean energy source. SMRs are particularly valued for their ability to provide a stable power supply when combined with renewable energy sources.
• Energy Diversification and Security:.SMRs can be flexibly installed, are suitable for supplying power in remote areas and on remote islands, and are safe because of their self-cooling capability. For this reason, SMRs are expected to be a new energy solution to replace conventional large reactors.
• Government Support and Deregulation:.The U.S. government is investing billions of dollars in SMR technology development and demonstration projects, followed by Russia, China, Japan, and others. A number of plans are underway with regulatory approvals underway and commercial operation to begin by 2030.

growth forecast

After 2030, SMR adoption is expected to accelerate, especially in the U.S., European, and Asian markets.Projects led by companies such as NuScale and TerraPower are expected to begin commercial operation between 2027 and 2030, and the market is expected to grow rapidly at this time.

The SMR market expansion is expected to continue to grow in the coming years to meet decarbonization, energy security, and diversifying energy demands.

Current status of the SMR market worldwide and in the U.S.

The current state of the small modular reactor (SMR) market in the world and in the United States is rapidly evolving in terms of energy policy and technological innovation.

SMR Market in the U.S.

The United States is one of the leaders in SMR technology, especially with government support and regulatory approval processes underway. The U.S. Department of Energy (DOE) is strongly promoting the commercialization of SMR technology as part of its clean energy goals, with billions of dollars of investment.

One specific project of note is the SMR project being pursued by NuScale Power, Inc. The project, which is expected to begin commercial operation between 2027 and 2030, has already received design certification from the U.S. Nuclear Regulatory Commission (NRC).

In the U.S., SMRs are being introduced to replace aging coal-fired power plants and diesel generators in remote areas, and are also being explored for heat utilization and hydrogen production applications in manufacturing. Also,More than 90 million kW of new nuclear power plants are expected to be needed by 2050, the majority of which will be accounted for by SMRs.

Global SMR Market

Globally, the United States, Russia, and China lead the SMR market. Russia is operating the Academic Lomonosov, the world's first offshore floating SMR, which began commercial operation in 2020. China is also working on an SMR project called "Linglong No. 1," which started construction in 2021.

In total, there are about 73 SMRs under development worldwide, with the United States, Russia, and China accounting for the majority. The technology is attracting attention, particularly because it is consistent with policies aimed at achieving carbon neutrality and can be used complementary to renewable energy sources to provide a stable power supply. Studies and projects are also underway in Japan, Canada, and the United Kingdom to introduce the technology.

The SMR market in the U.S. and globally is expected to continue to grow, with many projects expected to begin commercial operation in the late 2020s.

Deployment plans and market forecasts through 2050

Although plans and market forecasts for the introduction of small modular reactors (SMRs) through 2050 will depend largely on energy policy and technological innovation, the following points can be identified in the current outlook.

Global implementation plan

SMRs are expected to be adopted as a major clean energy source in many countries by 2050. In particular, the United States, Russia, China, and Europe are leading the field.

• Americais currently in the process of developing a project, led by NuScale and other companies, to begin commercial operation by 2030. The U.S. Department of Energy (DOE) needs about 90 million kW of new nuclear power generation by 2050, and there are plans for a large portion of that to be provided by SMRs.
• Russiahas already put the offshore floating SMR "Academic Lomonosov" into commercial operation, and similar projects are underway; more SMRs are planned to be deployed domestically and internationally by 2050.
• ChinaProjects such as "Linglong No. 1" are underway in China, aiming for commercial operation after 2030. The Chinese government is actively promoting SMR as a complement to renewable energy, and more projects are expected to be deployed by 2050.
• Europeand ... andJapanis also considering the introduction of SMR between 2030 and 2040, especially in combination with renewable energy.

market forecast

The market size of SMR is expected to grow rapidly after 2030.
By 2050, the SMR market could reach tens of billions of dollars and is expected to grow further as energy decarbonization and security of supply become more important. In particular, demand for SMRs is expected to grow more than for conventional large reactors, as they support electricity demand in remote areas and on a smaller scale.

Background of Increased Demand

By 2050, the global carbon neutrality goal will be greatly promoted, and SMRs will play an important role in achieving this goal, complementing the instability of renewable energy sources and providing a stable power supply. In addition, demand is expected to increase for industrial applications, especially in hydrogen production and high-temperature processes.

SMR (small modular reactor) design and development companies and related stocks (U.S. stocks)

These companies provide basic design, research and development, and technology for SMRs.
Leader in SMR innovation and commercialization.

New Scale Power [SMR

NuScale Power (SMR) is a US-based company engaged in the design and development of small modular reactors (SMR).
The company is a leader in this SMR market and was the first company to receive design certification for SMRs from the U.S. Nuclear Regulatory Commission (NRC) in 2020.
With this certification, the path to commercial operation has materialized, and plans are underway for the commercialization of SMR by 2030.

The company's SMR technology can be operated on a module-by-module basis, enabling flexible operation in response to power demand, and its strength is that it can significantly reduce power plant construction costs and construction periods.

Furthermore, this technology is expected to be used in regions and remote areas where stable power supply is an issue, and has received billions of dollars in support from the U.S. government.
NuScale Power's SMRs are also seen as a complementary power source for renewable energy, and are expected to play an important role in the realization of a decarbonized society.

OKLO

Oklo Inc. (OKLO)is an innovator in next-generation clean energy technology, specifically in the development of innovative small modular reactors (SMRs) called "Advanced Fast Leader Reactors".

This technology reuses spent nuclear fuel to provide a sustainable and clean power supply.
It is characterized by its aim to use renewable energy sources in a complementary manner, and to achieve both energy supply stability and environmental friendliness.

Also,The deep involvement of Sam Altman, CEO of OpenAI, a prominent figure in the technology industry, in Oklo is also a major point of interest.The first is the "A" in the "A" column.

With his support, Oklo is facilitating financing and accelerating the commercialization of next-generation reactor technology.
Altman's involvement suggests that Oklo's technology has great potential for energy-intensive industries such as AI and data centers.
The role of Okuro in the SMR market is an area that is expected to continue to grow.

OKLO: Small Modular Reactor Innovator – Growth and Stock Outlook - MiFsee

As demand for AI grows rapidly, the problem of power supply is becoming more serious.

mifsee.com

SMR (small modular reactor) engineering and construction companies and related stocks

The company is responsible for the actual construction based on SMR's design. Construction cost efficiency and project management play an important role.

FLR

Fluor Corporation (FLR) is a U.S.-based global engineering and construction firm with particular strengths in energy, chemical, mining, infrastructure, and government projects. The company is widely known in the field of large-scale project management and construction engineering and is recognized for its ability to handle complex and technically advanced projects.

The company has been a key partner of NuScale Power, especially in the small modular reactor (SMR) market. Fluor is deeply involved in NuScale's SMR projects, providing engineering and construction management skills in their design and construction. In this way, the company is playing a key role in the company's efforts to commercialize the next generation of clean energy technologies.

As part of its long-term growth strategy, Fluor is focusing on the renewable and nuclear energy sectors, and is expected to strengthen its presence in the energy market in the future.

AECOM [ACM].

AECOM (ACM) is a U.S.-based global engineering, construction, design, and consulting firm with strengths in infrastructure and projects in the environmental, transportation, energy, and building sectors.
He is particularly adept at managing large, complex projects, providing a wide range of solutions for government agencies and private sector clients.

AECOM is also involved in the nuclear industry and has expertise in the design and construction of nuclear power plants and their maintenance. Particularly in the small modular reactor (SMR) market, AECOM has demonstrated its technological competence in the design and construction of infrastructure.
The company's global project management experience and expertise in infrastructure development has contributed to the commercialization of SMR technology and is expanding its role in the energy sector.

AECOM is also committed to promoting sustainable development and renewable energy, and is actively working on projects that respond to changes in the energy market. These efforts by the company are elements of its long-term growth potential in the development of energy infrastructure.

SMR (Small Module Reactor) raw material and parts suppliers and related stocks

A company that provides materials and components needed for SMR construction. Durability and safety of reactor materials are particularly important factors.

St. Luce Energy [LEU].

Centrus Energy Corp (LEU) is an important provider of uranium fuel for the nuclear industry, with a particular focus on the supply of highly enriched uranium (HALEU) required for small modular reactors (SMRs).
Centrus, which utilizes uranium enrichment technology to produce fuel suitable for next-generation reactors, is part of the supply of components essential to SMR operations.

LEU is a company that is being looked to to provide the technological foundation for the commercialization of SMR to support clean and efficient power supply in today's market demand for renewable and clean energy.

In particular, HALEU fuel offers higher fuel efficiency than conventional reactors, helping to reduce SMR operating costs and improve safety, making LEU a leader in this field.

In the future, as SMRs become more widely used, St. Luce Energy is expected to grow further in the area of nuclear fuel supply.

Light Bridge [LTBR

Lightbridge Corp. (ticker: LTBR) specializes in the development of next-generation nuclear fuel technologies, with a particular focus on highly efficient fuel designs for small modular reactors (SMRs).
The company's technology is expected to enable cost reductions and optimized performance in SMR operations due to its improved safety and power generation efficiency compared to conventional fuels.

With the growth of the SMR market, Lightbridge's fuel technology is expected to play an important role in supporting the future of nuclear power generation, and the company is expected to be a key player in the energy market in the future. The company is also attracting attention in the energy market in the future.

Honeywell [HON

Honeywell International (HON) is a leading U.S.-based multinational corporation known for its aerospace, building technology, performance materials, and safety and productivity solutions.
In particular, it is recognized worldwide for its innovation in energy and technology solutions and plays an important role in the nuclear energy industry.

Honeywell is involved in the fabrication and supply of nuclear fuel and also serves the nuclear energy market by providing technology and materials, especially for small modular reactors (SMRs). With its strength in technologies related to the nuclear fuel cycle, Honeywell is seen as an essential supplier for the development of next-generation energy technologies such as SMRs.

Honeywell is also leveraging its broad technology portfolio to provide sustainable energy solutions such as energy efficiency and smart grids. As the transition to clean energy continues, Honeywell is expected to grow in the new energy technology market, and the company's innovative technologies will play an important role in the future development of the energy industry.

BWX Technologies [BWXT].

BWX Technologies (BWXT) is a leading U.S.-based nuclear technology company, providing products and services primarily in the nuclear field.
The company manufactures nuclear fuel, reactor components, and radiopharmaceuticals for government and commercial applications, and has extensive experience and a proven track record in nuclear-related technologies in particular.

In addition to manufacturing nuclear fuel and components for commercial nuclear power plants, BWX Technologies is a supplier of critical military reactor technology to the U.S. government.
For example, the company is notable for providing nuclear reactors for U.S. Navy nuclear submarines and aircraft carriers. The company is also active in the small modular reactor (SMR) market, contributing to SMR projects as a nuclear fuel supplier. In particular, the company is an industry leader in the development of highly efficient and safe fuel technologies and is expected to grow in the next-generation energy market.

BWX Technologies' broad range of technologies and industrial contributions span from energy to defense to medicine.

The company's commitment to sustainable energy and nuclear technology continues to be a key component of its growth in the energy market and defense-related businesses.

SMR (small modular reactor) energy supply and operation companies and related stocks

Companies that actually operate SMRs and generate power. The objective of these companies is to increase the stability of energy supply by installing SMRs.

Duke Energy [DUK

Duke Energy (DUK) is a major electric utility in the United States, primarily supplying electricity and natural gas. The company has a large scale of operations, primarily in the Southeastern United States, serving approximately 7.5 million electricity consumers in six states. It also supplies natural gas and is committed to the transition to sustainable energy.

In addition to conventional power plants, Duke Energy is also focusing on the use of clean energy sources such as wind, solar, and nuclear power. In particular, nuclear power is an important part of the company's energy mix and is attracting attention as a stable source of supply as it continues its shift to clean energy. The company has also shown interest in introducing small modular reactors (SMRs), which will help diversify and stabilize its energy supply in the future.

Duke Energy has set a goal of reducing carbon dioxide emissions by 501 TP3T by 2030 and achieving carbon neutrality by 2050 by improving energy efficiency and reducing greenhouse gas emissions. Thus, the company's strategy is to use a combination of renewable energy and nuclear power to stabilize its energy supply and reduce its environmental footprint over the long term.

Southern Company [SO

Southern Company (SO) is a major electric utility based in the southern United States, with operations in Alabama, Georgia, Mississippi, Florida, and other states. The company provides electricity and natural gas, serving approximately 9 million consumers. The company is unique in that it is actively engaged in the transition to sustainable energy, and is increasingly adopting renewable and clean energy sources.

Southern Company is also an important player in the field of nuclear power generation and has expressed interest in introducing small modular reactors (SMRs) in addition to existing nuclear power plants. In particular, the company is promoting a diverse energy mix that includes nuclear power in order to both combat climate change and ensure a stable energy supply.

In addition, the company has set a goal of reducing its carbon dioxide emissions by 501 TP3T by 2030 and achieving carbon neutrality by 2050, and is intensifying its use of renewable energy, natural gas, and nuclear power. The company is also pursuing wind and solar power generation, and is aiming for leadership in the sustainable energy market. The company's long-term strategy focuses on increasing energy efficiency and protecting the environment at the same time.

Exelon [EXC].

Exelon Corporation (EXC) is the largest nuclear power producer in the United States and a major utility company that generates and distributes energy. In particular, it operates 21 nuclear reactors in the United States and is known for its nuclear-based clean energy supply.
Xeron attaches great importance to nuclear power generation, providing approximately 60% of its total electricity generation from nuclear power. The company is also actively introducing renewable energy sources such as wind and solar power, aiming to provide sustainable energy sources.

Exelon is promoting an energy policy aimed at carbon neutrality and is stepping up its efforts to reduce greenhouse gas emissions. In particular, nuclear energy is positioned as a reliable clean energy source that is complementary to renewable energy sources.
In addition, the company has expressed interest in introducing small modular reactor (SMR) technology, which it sees as a growth area for the energy market in the future.

Exelon's long-term strategy is to increase the operational efficiency of nuclear power while combining it with renewable energy sources to achieve both a stable energy supply and environmental protection. The company expects to continue its promotion of clean energy as a leader in both addressing climate change and providing a stable energy supply.

SMR (Small Module Reactor) related stocks (Japanese stocks)

I have not personally invested in Japanese stocks, so I do not know much about them, but I have also researched Japanese stocks for reference.

Japanese suppliers of raw materials and components for small modular reactors (SMRs) are primarily metalworking, machine-building, and power-related equipment manufacturers, and the following companies are of interest.

Mitsubishi Heavy Industries [7011].

MHI has traditionally been active in the development of nuclear power generation technology, and is focusing on SMR as the next generation of nuclear technology. In particular, the company is leveraging its many years of experience in nuclear power plant design, construction, and operation to research and develop compact, high-safety reactor technology.

Stock Price (7011) Chart (Yahoo! JAPAN Finance)

The Japan Steel Works [5631].

NKK is a world leader in the manufacture of reactor pressure vessels and other nuclear power related equipment, and in SMR, NKK is expected to supply components that require durability, with particular strength in the areas of pressure vessels and high durability steel products.

Stock Price (5631) Chart (Yahoo! JAPAN Finance)

Kobe Steel, Ltd.

Kobe Steel is widely known for its steel products and metal materials, and can supply high-strength steel and special alloys needed for SMR construction. The company also has a proven track record in the manufacture of components and materials used in nuclear power-related facilities.

Stock Price (5406) Chart (Yahoo! JAPAN Finance)

Sumitomo Electric Industries [5802].

Sumitomo Electric manufactures power supply systems and cables, and supplies power infrastructure-related products for nuclear power plants and SMRs. The company's highly reliable power cable technology is particularly valued in the development of power supply networks.

Stock Price (6330) Chart (Yahoo! JAPAN Finance)

Hitachi Zosen [7004].

Hitachi Zosen is known for providing turbines and radioactive waste treatment equipment for nuclear power plants, and is expected to supply related equipment and machinery for the SMR project.

Stock Price (7004) Chart (Yahoo! JAPAN Finance)

Ebara Corporation [6361].

EBARA manufactures equipment such as pumps and compressors, which play an important role in cooling systems and fluid management at nuclear power plants, and is expected to play an active role in supplying equipment related to SMR.

Stock Price (6361) Chart (Yahoo! JAPAN Finance)

These companies play an important role in supporting SMR projects in Japan and abroad by supplying high-quality materials and components required in the construction and operation of SMRs. The technical capabilities of these companies will continue to be a focus of attention as they respond to the high demands of nuclear technology.

summary

Small modular reactors (SMRs) have great potential for growth and attractiveness as an investment theme. In particular, next-generation reactor design companies such as Bill Gates-backed TerraPower and X-energy are attracting attention, but these companies are privately held at this time, and direct investment options are limited. Currently, there are not many individual SMR-related stocks or Japanese stock options, but there is a good chance that the number of related companies will increase as the technology progresses and the market expands.

As for ETFs, while there are those related to clean energy in general and uranium in particular, ETFs specializing in SMR have yet to appear. However, if SMR attracts attention as a clean energy technology in the future, there is a possibility that the number of investment products and related companies specializing in this field will increase, and it is expected that the number of options will expand.

SMR-related stocks with long-term growth prospects are likely to play an important role as part of the solution to future energy problems, and we would like to hold SMR-related stocks with long-term growth prospects.