US nuclear power resurgence

What happened: The Nuclear Co. (TNC), a U.S. startup, is set to propose a new large-scale conventional reactor in South Carolina, signaling a potential resurgence in U.S. nuclear power. This follows the signing of the Nuclear Energy Innovation and Modernization Act (NEIMA) in 2017, which aimed to streamline nuclear reactor licensing. Additionally, Senators Mike Lee and Dave McCormick introduced the Nuclear Energy Innovation and Deployment Act (NEIDA) in April 2023, proposing to allow commercial reactors on federal land.

Market impact: This narrative affects the nuclear power and energy infrastructure sectors. TNC's proposed reactor build could stimulate demand for nuclear power services and related supplies. NEIDA, if passed, could open up new areas for nuclear power generation, potentially benefiting companies involved in nuclear reactor construction and operation. However, it may also face regulatory hurdles and public opposition, which could impact project timelines and costs.

What to watch next: The submission of TNC's reactor proposal to the U.S. Nuclear Regulatory Commission (NRC) will be a key catalyst, likely in late 2023. The progress of NEIDA through Congress will also be crucial, with a potential vote on the bill expected by the end of 2023. Additionally, watch for updates on the NRC's licensing process for advanced and small modular reactors, which could further drive the U.S. nuclear power resurgence.