NuScale Power Corporation (NYSE: SMR) is pushing into the industrial heat sector, exploring how its small modular reactors could replace fossil fuel systems at factories and chemical plants.
According to a U.S. Department of Energy analysis cited by NuScale, process heating accounted for 51% of manufacturing energy use in 2018, representing a substantial potential market.
Factories require heat to refine crude oil, produce chemicals, and manufacture fertilizers, with the vast majority of that energy currently supplied by fossil fuels.
NuScale says a plant equipped with 12 Power Modules could supply 3 gigawatts of thermal energy in the form of superheated steam, offering industrial customers a lower-emissions alternative.
In a 2025 assessment published with Oak Ridge National Laboratory, several proposed reactor systems were found capable of serving a large chemical facility while potentially cutting carbon dioxide emissions by 80% to 90%.
NuScale is also working with Ebara Elliott Energy on a high-temperature steam compressor designed to raise reactor-supplied steam to 500°C or more, expanding the range of viable industrial applications.
The company’s reactor design supports an emergency planning zone at the plant boundary, allowing installations closer to customer facilities and reducing heat loss during transport.
Despite the technical progress, commercial adoption remains uncertain, as NuScale must still demonstrate its systems at commercial scale, secure customers, and arrange financing before process heat becomes a revenue source.
Shares of SMR have lost approximately 55% of their value over the past six months, and the company currently carries a Zacks Rank of 4, designated as Sell.
NuScale holds an average brokerage recommendation of 2.79 on a scale of 1 to 5, based on actual recommendations from 19 brokerage firms, reflecting cautious sentiment across Wall Street.
NANO Nuclear Energy (NASDAQ: NNE) is also targeting high-temperature industrial applications, with its KRONOS MMR using gas-cooled reactor technology and TRISO fuel designed for data centers, industrial, and defense-related customers.
Oklo Inc. (NYSE: OKLO) is pursuing a comparable strategy with its Aurora powerhouses, which are designed to deliver both electricity and usable heat as part of a broader integrated nuclear platform.
Oklo is already developing an Aurora application at Eielson Air Force Base intended to supply simultaneous electricity and heat, while also planning to own and operate these assets directly.
As industries seek to reduce dependence on fossil fuels, demand for advanced nuclear heat-and-power solutions could intensify, creating new business opportunities while also sharpening competition across the sector.
