Why NuScale Power stock hit the market on Thursday

Developer of state-of-the-art nuclear power plants NuScale Power (SMR 1.44%) provided some good news to investors on the penultimate trading day of the week. Against this backdrop, bullish players pushed the company’s shares up 1.4% on the day, providing an encouraging contrast to the 0.2% drop in S&P 500 index.

The Romanian project is moving forward

In a regulatory filing with the US Securities and Exchange Commission (SEC), NuScale reported that it has signed an operating order to provide services for a small modular nuclear reactor project currently underway in Romania. The arrangement is between a grant from the company and Fluor Transworld Services, a unit of the American engineering company Fluor Corporation.

Under the terms of the order, the grantee, NuScale Power OVS, is to provide certain front-end engineering and design services for the project.

The nuclear reactor is to be built on the site of a former coal-fired power plant in the municipality of Doicești. Last July, hailing the project as a model of business cooperation between the US and Romania, the US embassy in the country wrote in a press release that the plant would provide “clean, carbon-free energy, create jobs, stimulate economic growth and will help establish Romania as a clean energy leader in the region”.

Strengthening reputation

As for NuScale, the project will also strengthen the company’s reputation as a developer of small modular nuclear reactors, a scaled-down, 21st-century approach to this form of power generation. Investors will hope the company expands to other projects around the world, perhaps even in hostile nuclear countries like its native US.