Citi: 'Nuclear continues to see positive headlines'

Citi: 'Nuclear continues to see positive headlines'

The analyst comments "Nuclear continues to see positive headlines. OKLO completed Phase 1 of its pre-application readiness assessment with the NRC. Recall that Phase 1 serves as a “dress rehearsal” for the formal application submission, helping to align scope and expectations between the company and the NRC. Investors are starting to look at the next legs of the nuclear trade, including companies involved in the supply chain and which will help construct reactors. We are awaiting a preliminary AD decision in DOC’s investigation of active anode materials, which has implications for storage. Storage — Recurrent Energy announced project and tax equity financing totaling $260mm for its 94MW Blue Moon Solar project in Kentucky. The project is expected to reach commercial operation in 2026. We recently noted that the company has already safe harbored equipment for its planned IPP portfolio. Separately, global BESS capacity deployed in 1H25 reached 87.6GWh, up 54% Y/Y. June marked the largest month so far in 2025 with 22.2GWh beginning commercial operations, representing nearly 20% M/M growth. More than 50% of capacity was originated in China, per ESS News (7/15). Nuclear — OKLO announced successful completion of the NRC’s pre-application readiness assessment for Phase 1 of its combined license application for its first powerhouse. No significant gaps were identified that would hinder acceptance of the application. Observations were also made which will help finalize the application to support an efficient review process. Separately, the DOE announced (7/16) a pilot program to expedite the development of advanced reactors and strengthen domestic nuclear fuel supply, with a greater focus on the latter initiative and in accordance with President Trump’s EO (see note). Initial applications are due by 8/15, with at least three awardees expected to be announced later this summer. Applicants will be responsible to cover upfront capital costs. Separately, MSFT (covered by Tyler Radke) partnered (7/16) with Idaho National Laboratory to provide AI technologies to streamline nuclear permitting and licensing process. Key services include generating safety analysis reports, analyzing submitted engineering and safety documents, and accelerating review processes for both DOE and NRC facilities. This follows similar AI agreements between 1) GOOGL (covered by Ronald Josey) and Westinghouse on 7/15 and 2) PLTR (covered by Tyler Radke) and The Nuclear Company on 6/26 (see note). Separately, Westinghouse announced (7/15) plans to construct 10 AP1000 nuclear reactors in the US, with construction set to begin by 2030. Each Westinghouse pressurized water reactor (PWR) has 1.1GW of capacity. Macro — June Y/Y PPI came in at 2.3%, lower than expectations of 2.5% and down from 2.7% in May. More notably, prices were unchanged M/M, the first time since July 2024, implying muted tariff effects on inflation thus far. Retail sales data will be out today, providing a read on consumer strength."

You May Also Be Interested In