Nuclear energy stocks surged after Amazon Web Services (AWS) unveiled plans to invest over $500 million in nuclear power. The tech giant's foray into nuclear energy is part of its broader commitment to achieving net-zero carbon emissions by 2040.
Among the benefactors of this investment are Oklo Inc, NuScale Power Corp., and Nano Nuclear Energy Inc, which saw their stocks jump.
Oklo's stock (OKLO) added more than 30%, NuScale Power's shares (SMR) by 33%, and Nano Nuclear Energy (NNE) by 10% at the time of writing, marking a significant shift in investor sentiment towards the nuclear energy sector.
AWS has entered agreements aimed at supporting the development of nuclear energy projects, specifically Small Modular Reactors (SMRs). Energy Northwest will take the lead in constructing four advanced SMRs in Washington. The first phase is expected to produce a significant 320 MW of capacity with a future potential expansion leading up to 960 MW. This development stands to benefit from Amazon's sizeable investment, underscoring a corporate endorsement for next-generation nuclear technology.
Furthermore, Amazon has made a strategic investment in X-energy, a company working on an advanced nuclear reactor design. X-energy is anticipated to develop SMR equipment to support more than five gigawatts of new nuclear energy projects. This collaboration is a key step for Amazon, positioning it as a major player in the renewable energy space.
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Amazon has also signed an agreement with Dominion Energy in Virginia to explore the development of an SMR project near the North Anna nuclear power station. This initiative has the potential to supply at least 300 MW of power to the Virginia region, further illustrating Amazon's commitment to diversifying its energy portfolio.
Echoing Amazon's strategic move, Google has also made headlines by securing a deal to purchase power from Kairos Power's Small Modular Reactors, with the first reactor set to be operational by 2030. This indicates a growing trend among tech giants investing in nuclear power as a means to meet their sustainability objectives.
Amazon's CEO of Cloud Services, Matt Garman, emphasised the significance of nuclear energy in meeting the company's Climate Pledge. The ambitious goal to be net-zero carbon by 2040 is a part of Amazon's strategy to lead by example in the corporate world. Investments like these represent Amazon's belief in nuclear power as a reliable and necessary component of a sustainable energy future.
NuScale Power Corp. (NuScale) is recognised for its advanced SMR nuclear technology, while Oklo Inc. (Oklo) specialises in fast fission power plants. Nano Nuclear Energy is an emerging nuclear energy company, and Lightbridge is focused on developing advanced nuclear fuel technology.
The news of Amazon's significant investment in nuclear power is a strong signal of the market's growing confidence in nuclear energy as a green alternative. This move not only boosts nuclear stocks but also promises a future where technology giants are key drivers of clean energy initiatives.
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