NEW YORK: Activist fund Ananym Capital Management is pushing nuclear technology company BWX Technologies Inc to tap its nuclear reactor manufacturing capabilities for commercial use.
Ananym said BWX has the potential to more than double its market value by 2028 through licensing or developing its own design for a small modular reactor, or SMR, according to a presentation by co-founder and chief investment officer Alex Silver.
“Commercial nuclear is a growth market, especially if we’re going to meet the demands that are expected in the future from artificial intelligence and other aspects of society,” Silver said Tuesday at the Sohn Investment Conference in New York.
The Lynchburg, Virginia-based nuclear components manufacturer supplies nuclear reactors and fuel to the US Navy.
It also provides heavy components to commercial nuclear reactors manufactured by companies such as Westinghouse, as well as servicing nuclear plants.
Earlier Tuesday, shares of BWX, which have gained 20% this year, fell 1.9% in New York trading, giving the company a market value of about US$19bil.
A representative for BWX didn’t immediately respond to a request for comment.
Charlie Penner, a co-founder and head of engagement at Ananym, said the increasing demand for energy and bipartisan support for nuclear power in the United States is creating a massive market for commercial nuclear power.
“A growing shift toward energy independence will also increase demand,” he said.
Ananym is pushing BWX to redevelop its design for a so-called pressurised water SMR that it shelved in 2017, Penner said.
That SMR would likely be less expensive to manufacture and use less water than competing, so-called boiling water designs, he said.
“This is a great company and they know the space best, but we are encouraging them to fully explore commercialising their mPower pressurised water SMR, which we think would attract significant buyer interest today and result in substantial long-term value creation, while still serving as a picks-and-shovels provider to other types of reactors,” Penner said. — Bloomberg
