New Partnership and Technological Advances Propel Advanced Nuclear Solutions

Source: Streetwise Reports 07/12/2024

Nano Nuclear Energy Inc. (NNE:NASDAQ) a vertically integrated advanced nuclear energy and technology company, announced that it has signed a Memorandum of Understanding (MOU) with Curio Solutions. Read to learn how this MOU affects upcoming plans for the company.

Nano Nuclear Energy Inc. (NNE:NASDAQ) a vertically integrated advanced nuclear energy and technology company, announced that it has signed a Memorandum of Understanding (MOU) with Curio Solutions. The MOU aims to optimize Curio’s nuclear fuel recycling capabilities for NANO Nuclear’s next-generation portable nuclear microreactors, marking a significant milestone in the development of its ‘ZEUS’ and ‘ODIN’ microreactors.

Curio Solutions, based in Washington, D.C., is a leading developer of advanced nuclear recycling technology and the pioneer of the NuCycle process. NuCycle uses advanced chemistries to enhance operational modularity, capacity, and economic viability, receiving funding from the U.S. government. This process offers a substantial opportunity to reduce nuclear waste through recycling.

Edward McGinnis, CEO of Curio, stated in the company news release, “Our collaboration with NANO Nuclear exemplifies our commitment to working across the entire spectrum of the nuclear industry. NANO Nuclear’s innovative approach to reactor design aligns perfectly with our vision for a sustainable nuclear future. We are excited to work with NANO Nuclear on creating tomorrow’s nuclear energy solutions.”

The Market For Advanced Nuclear Energy

The advanced nuclear energy sector has been recognized as a pivotal element in achieving the United States’ energy, environmental, and national security goals.

According to the Nuclear Energy Institute (NEI), “Advanced nuclear energy is a game-changer that builds on the proven track record of nuclear power as the largest, most reliable carbon-free energy source in the United States.” This sector not only aims to decarbonize the energy industry but also offers significant benefits, including job creation, improved national defense, and enhanced energy security.

As cited by Carbon Credits on July 7, nuclear energy plays a fundamental role in meeting multiple objectives. Senator John Barrasso highlighted that “the United States generates more electricity from nuclear power than any other country in the world,” emphasizing the country’s leadership in nuclear technology development and deployment. He also noted the importance of re-establishing America as the global leader in nuclear energy.

The Biden administration has taken significant steps to support the nuclear sector. E&E News by Politico reported on June 18 that the Department of Energy (DOE) announced plans to inject US$900 million into developing small nuclear reactors, with up to US$800 million supporting “first-mover teams” for deploying small modular reactor (SMR) plants. This initiative aims to scale up nuclear power and reassert American leadership in this critical energy industry. Secretary of Energy Jennifer Granholm stated, “Today’s announcement will support early movers in the nuclear sector as we seek to scale up nuclear power and reassert American leadership in this critical energy industry.”

Analyst Michael Legg reported that “because the stock of Nano Nuclear Energy Inc. (NNE) rose about 400% since going public at US$4 per share last month, spurred by two developments, The Benchmark Co. increased its price target on the company to US$39 per share from US$15.”

The DOE projects that the U.S. will need an additional 700 to 900 gigawatts of clean, firm electricity capacity to reach net-zero emissions by 2050. The administration is working to “reinvigorate the existing nuclear fleet, jumpstart new reactor technologies, and onshore critical fuel production,” according to White House climate adviser Ali Zaidi.

The advanced nuclear sector also addresses critical climate goals. As the NEI pointed out, “Advanced nuclear energy, working with current nuclear technologies, is our best hope for reducing global emissions at the speed and scale needed to halt climate change.” New reactors can produce zero-emission energy with a smaller land footprint than other clean energy sources and provide the heat and hydrogen needed to decarbonize industries like manufacturing and transportation.

Moreover, advanced nuclear reactors can create substantial economic benefits. The NEI reported that “the development of next-generation nuclear energy will generate high-paying jobs and provide support to local economies in communities that are seeking to transition towards cleaner energy sources.” Adding SMRs where coal power plants have been retired preserves crucial baseload and grid-stabilizing benefits while generating employment opportunities at a community level. Estimates show that constructing and operating a 600-megawatt SMR could employ 900 manufacturing and construction workers for about four years and create 300 permanent positions for the plant’s 60-year life.

The sector’s potential for innovation and growth is immense. According to E&E News, the United States remains the world’s leader in nuclear energy output, with 94 operational reactors accounting for one-third of nuclear power produced globally. However, competition from countries like China, which is rapidly advancing its nuclear capabilities, underscores the need for a cohesive national strategy. The DOE’s Advanced Reactor Demonstration Program, launched in 2020, aims to speed up the demonstration of advanced reactors, requiring more resources in terms of funding and manpower.

Nano’s Catalysts

NANO Nuclear’s commitment to advancing portable nuclear energy solutions is evidenced by its recent achievements and strategic collaborations. As per Nano, the partnership with Curio Solutions is set to enhance NANO Nuclear’s fuel designs, improving recyclability and integrating cutting-edge recycling methods through the NuCycle process. This collaboration could lead to the incorporation of recycled fuel into NANO Nuclear’s advanced microreactor designs.

Jay Yu, Executive Chairman and President of NANO Nuclear Energy, expressed his enthusiasm for the collaboration, stating in the company release, “The opportunity to utilize Curio’s expertise in nuclear fuel recycling and optimize our reactors to be cleaner, more efficient, and safer is a significant boon to NANO Nuclear. This collaboration also further demonstrates our ability to identify and seek to incorporate other innovative technologies into our microreactor technologies.”

Casey Dylan from MSN, writing on July 9, noted that “since going public in May, shares of NANO Nuclear Energy have grabbed investors’ attention as they have surged up over 462%.”

The ‘ZEUS’ advanced portable microreactor is designed to generate between 1 and 2 megawatts of clean electricity without relying on fluid coolant, thereby improving safety and reliability. The ‘ODIN’ microreactor, another notable innovation, is set to benefit from NANO Nuclear’s recent acquisition of annular linear induction pump (ALIP) technology, which enhances passive decay heat removal capabilities using natural circulation.

James Walker, Chief Executive Officer and Head of Reactor Development at NANO Nuclear Energy, highlighted the broader impact of their work: “Our advanced portable nuclear microreactors represent a paradigm shift in how we think about nuclear power — making it more accessible, adaptable, and aligned with the world’s evolving energy needs. By collaborating with Curio, we are pushing the boundaries of nuclear energy technology and seeking to take our vision a step further by optimizing our advanced microreactor designs for recycling, creating the potential for a truly sustainable nuclear fuel cycle.”

This partnership is a strategic step for NANO Nuclear as it continues to lead the charge in the global nuclear energy renaissance, aiming to make significant contributions to the future of clean, efficient, and sustainable nuclear energy.

Analyst Opinions on Nano

According to Michael Legg from Benchmark Co. on June 26, Nano Nuclear Energy Inc. has experienced “solid momentum” since its initial public offering last month. He reported that “because the stock of Nano Nuclear Energy Inc. (NNE) rose about 400% since going public at US$4 per share last month, spurred by two developments, The Benchmark Co. increased its price target on the company to US$39 per share from US$15.”

Legg highlighted that “our new net asset value calculation benefits from the stock’s recent appreciation with the increased share price offsetting previous dilution in our model.” He also noted that catalysts for the stock include further operational success and increased knowledge and demand for small modular nuclear reactors, maintaining a Buy rating for the company.

Additionally, he mentioned that “Nano Nuclear announced it acquired the intellectual property for the annular linear induction pump (ALIP) technology, used in small nuclear reactor cooling and heat transfer,” which will be applied to optimize the ODIN microreactor. Legg commented positively on the passage of the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act by the U.S. Senate, stating, “We believe this passing is further justification that nuclear is needed to reach climate initiatives, as nuclear is the only large-scale, reliable, emission-free energy source.”

According to Alexander Boulden, Editor of Wealth Daily, Nano Nuclear Energy is a significant player in the transition to nuclear power in the U.S. Boulden highlighted on July 3 that “Nano Nuclear Energy is the new Nvidia” in the context of the nuclear energy sector.

In May, Tiernan Ray from Fast Company wrote that “Nano Nuclear wants to reinvent the nuclear power business—but it could take a while.” He noted that the company is expected to go public on Nasdaq with a plan to address the challenges facing the nuclear power business.

Ray highlighted that “Walker has gathered a mish-mash of engineering talent and former bankers to build what’s called a ‘microreactor,’ also known as a ‘small modular nuclear reactor,’ which can be hitched to a tractor trailer and driven around the country to wherever it is needed—be it a remote mining site that needs power, or an AI data center.” He also mentioned that Nano Nuclear has started two subsidiaries to secure HALEU (High-Assay Low-Enriched Uranium), which is critical for the success of advanced reactors.

Casey Dylan from MSN, writing on July 9, noted that “since going public in May, shares of NANO Nuclear Energy have grabbed investors’ attention as they have surged up over 462%.” Dylan pointed out that although the company is currently unprofitable, it “is poised to address the escalating energy demands of various sectors, including the burgeoning electric vehicle (EV) and data center markets.”

He also mentioned that “NANO has recently acquired nuclear reactor cooling technology, which promises to revolutionize the heat transfer process, enhancing reactor reliability while diminishing maintenance needs.” Dylan emphasized the potential rewards for investors willing to speculate on emerging nuclear technology, describing NANO Nuclear as “a high-risk, high-reward opportunity.”

Aditya Raghunath for Barchart, writing for Nasdaq on June 26, stated that “valued at a market cap of US$831 million, NANO Nuclear Energy (NNE) is among the hottest stocks on the planet.” He noted that the stock “surged close to 40% in a single trading session yesterday, and has returned a staggering 488% since its IPO in May 2024.”

According to Alexander Boulden, Editor of Wealth Daily, Nano Nuclear Energy is a significant player in the transition to nuclear power in the U.S. Boulden highlighted on July 3 that “Nano Nuclear Energy is the new Nvidia” in the context of the nuclear energy sector. He noted that the U.S. Senate’s recent passage of a bill to support the deployment of nuclear energy would greatly benefit companies like Nano Nuclear. This bill aims to cut regulatory costs, create incentives for deploying next-generation reactors, and speed up the licensing process for nuclear facilities.

Boulden emphasized the immense investment opportunities arising from the U.S. transition to nuclear power. He mentioned that “the bill could benefit companies like Bill Gates-backed TerraPower, which is trying to build a US$4 billion Natrium reactor in Wyoming on the site of an old coal plant but is struggling to secure a key permit.” This legislative support is expected to be a boon for nuclear energy and could drive significant investment into the sector.

He concluded by stating, “One stock that’s been riding the trend is Nano Nuclear Energy (NASDAQ: NNE). The company makes a portable nuclear microreactor. It’s the first publicly traded company of its kind, and it’s up over 300% since June. Some say it’s the Nvidia of nuclear energy production.” According to Boulden, Nano Nuclear Energy is poised for significant growth, positioning itself as a leader in the emerging nuclear technology landscape. [OWNERSHIP_CHART-11107]

Ownership and Share Structure

According to Reuters, management and insiders own 10.24% of the company.

36.96% is with strategic investor I Financial Ventures Group LLC, with 10.70 million shares.

The rest is with retail.

As far as share structure, Nano Nuclear has 28.95M outstanding shares and 15.29M free float traded shares.

Its market cap is US$455.44 million.

Nano Nuclear went public in May of this year and, management believes, is the first company focused on developing and designing portable nuclear microreactors to be listed publicly.

Since the initial public offering, its stock has traded between US$3.25 and US$16.50 per share.

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