Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
The rapid growth of artificial intelligence data centers is prompting a swift revival of an old industry and bringing about new changes. Nuclear energy is viewed as a quick and environmentally friendly solution to the global energy shortage caused by the surge in electricity demand from AI data centers. NuScale Power (SMR) is one of the few companies that are nearly ready to offer solutions in the near future. However, it remains unclear whether nuclear energy can indeed become the preferred solution to the Earth’s energy shortage and whether NuScale can play a role in achieving that goal.
Despite its checkered history, nuclear power is making a comeback. The World Nuclear Association reports that over the past 20 years, the number of newly commissioned nuclear reactors has exceeded the number of those decommissioned. The International Atomic Energy Agency (IAEA) believes that by 2050, global nuclear energy usage may be 2.5 times what it is today.
Market research firm Straits Research predicts that the Small Modular Reactors (SMR) market will grow at a rate of over 9% annually between 2023 and 2032. IDTechEx forecasts that the global SMR market will accelerate to an annual growth rate of 30% before 2043.
NuScale Power has yet to become profitable, and its actual revenue is negligible. However, the company’s prospects remain quite optimistic. Its small modular reactor design is currently the only one approved by the U.S. Nuclear Regulatory Commission.
On the other hand, there are still many concerns. To date, NuScale Power has not sold any operational small modular reactors. The company has also faced setbacks. Last year, due to cost overruns, the municipal power system in Utah terminated a high-profile nuclear facility development effort associated with NuScale technology after ten years. This embarrassing outcome raises questions about the fundamental premise and feasibility of small modular reactors.
As AI data centers prove their substantial electricity demand, small modular reactors have re-entered discussions about potential solutions. If successful, this may lead to explosive demand for NuScale’s small modular reactors.
More importantly, if things develop as some hope, certain investors may well become millionaires, but the likelihood of such scenarios occurring is not substantial enough to justify high-risk investments. Therefore, if investors dare to venture in, they should proceed with caution and keep a close eye on developments.
