Construction Firms Powering the Nuclear Renaissance

Investors usually focus on reactor developers and uranium miners when deciding on allocations for investing in the nuclear renaissance. A narrow view on the nuclear sector could result in missed opportunities for investment returns in nuclear-adjacent companies. Construction companies such as Fluor (FLR) and AtkinsRéalis (ATRL.CN) have active work spanning the nuclear value chain. These companies are seeing money from the nuclear renaissance today, compared to reactor developers that may not see meaningful income for years.

• Fluor (FLR) holds some of the most notable projects in the U.S., including construction of Centrus Energy’s (LEU) enrichment facility in Ohio and X-energy’s (XE) reactor plant in Texas.
• AtkinsRéalis (ATRL.CN) is leading projects in Canada, with the GE Vernova (GEV) and Hitachi (6501.T) reactors in Darlington and major reactor refurbishment work in Ontario.
• Investing in nuclear-adjacent companies with diversified revenue streams can help balance the risk of pre-revenue reactor development companies.

Fluor is working with some of the leading companies in the nuclear industry. With multiple projects underway, the company is expanding uranium enrichment capacity and building some of America’s first advanced reactors.

Centrus Energy (LEU) selected Fluor to serve as the lead contractor for expanding an enrichment facility in Ohio. The contract is part of a multi-billion dollar investment plan for increasing domestic enrichment capacity of uranium. Centrus was previously awarded $900 million from the Department of Energy to facilitate the expansion of that facility.

Fluor is also working on the proposed reactor project in Texas with X-energy (XE) and Dow (DOW). X-energy is working with the Nuclear Regulatory Commission to receive approval for constructing four of their Xe-100 small modular reactors (SMRs). The reactors will be used to directly power a plant owned by Dow instead of powering the national electric grid.

See more: Investing in X-energy Without the Pre-Revenue IPO Risk

The VettaFi Nuclear Renaissance Index (NUKZX) includes companies such as Fluor and Centrus Energy to offer exposure to investors across the nuclear value chain. NUKZX also includes major supply chain partners to companies like X-energy, such as Curtiss-Wright (CW) and BWX Technologies (BWXT).

AtkinsRéalis holds a significant footprint in the Canadian nuclear industry, with projects at both ends of the reactor lifecycle in Darlington and Ontario.

Candu Energy, a wholly-owned subsidiary of AtkinsRéalis, was awarded a $450 million contract for the construction of four SMRs at the Darlington New Nuclear Project. The reactor for the project is the BWRX-300, a boiling water SMR with enough energy to power 300,000 homes each. The reactor was designed by a joint venture between GE Vernova (GEV) and Hitachi (6501:TKS).

The Darlington project reached a recent major milestone with the installation of the 2.1-million-pound basemat module, the concrete foundation that supports the reactor structure. This served as a significant demonstration of the modular aspect of SMRs. Basemat construction for typical large reactors can take several days, whereas the basemat for the BWRX-300 was lowered into place in a matter of hours.

See more: OPG’s Darlington Project Proves the SMR Modular Thesis for Investors

The company is also involved in extending the life of reactors at the largest operating nuclear facility in the world, the Bruce Nuclear Generating Station. AtkinsRéalis is working with the facility owner and operator, Bruce Power, to extend the life of six reactors at the site to enable plant operation into the 2060s. All work completed on the reactors and supporting facilities so far has been done under budget and ahead of schedule.

Uranium mining companies and reactor developers often attract the most attention from nuclear investors, especially on social media. However, investors should consider the companies that connect uranium ore in the ground to reactor operations. Construction companies such as Fluor and AtkinsRéalis participate across multiple technologies, locations, and stages of the nuclear life cycle.

NUKZX, which serves as the underlying index for the Range Nuclear Renaissance Index ETF (NUKZ ), offers more balanced exposure to the nuclear renaissance theme. NUKZX also includes companies that own and operate reactors, such as Constellation Energy (CEG), and uranium conversion facility operators such as Solstice Materials (SOLS).

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