Shares surged by up to 9% following the announcement, accompanied by a series of optimistic buy ratings from Wall Street analysts. Despite the positive reception, the developer is yet to generate revenue and is venturing into the complex and costly realm of nuclear power plant construction. In the United States, only two reactors have been built in the 21st century, notably the Vogtle project in Georgia, which faced substantial overruns and delays.
Fermi, a real estate investment trust co-founded by former US Secretary of Energy Rick Perry, has enlisted the expertise of Doosan Enerbility to kickstart the project. This collaboration involves the production of essential components such as reactor pressure vessels and steam generators, which have lengthy lead times.
Securing a prominent position for the Westinghouse AP1000 reactors, Fermi has also inked a deal with Hyundai Engineering & Construction for the commencement of engineering activities.
While the exact project cost remains undisclosed, Fermi’s ambitious endeavors underscore the growing demand for gigawatts to support the expanding needs of AI technology. The company, based in Amarillo, Texas, was established earlier this year and has swiftly reached a market capitalization of approximately $14 billion after its recent IPO.
Reviving the large-scale nuclear industry in the US will pose financial challenges, prompting Fermi to collaborate with South Korean firms Doosan and Hyundai. While many anticipate a nuclear renaissance through small modular reactors, Fermi’s focus on significant nuclear projects represents a bold move that necessitates the revitalization of the entire supply chain.
Constellation Energy Corporation is currently working on reactivating the dormant Three Mile Island plant in Pennsylvania to cater to the needs of technology giant Microsoft.
