GE Vernova’s Ontario Nuclear Plant Is Facing Delays And Rising Costs

• Ontario Power Generation announced that the GE Vernova Hitachi small modular reactor is likely to miss its targeted October 2030 operational date due.
• The delays pose a challenge for the nuclear and power firms that are trying to prove that next-generation reactors can be built quickly and affordably. 
• The initial 300-megawatt unit was projected at roughly $5.4 billion.

North America's small modular reactor (SMR) project is running into hurdles, dealing a blow to the momentum of the modern nuclear power movement as data center builds look to gather pace. 

According to Ontario Power Generation—the state-run utility managing the project—the GE Vernova (GEV) Hitachi reactor being built in Ontario is expected to exceed its initial budget and will likely miss its scheduled October 2030 start date.

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The setback comes at a delicate time for numerous firms developing next-generation nuclear tech, including companies like Oklo (OKLO), X-Energy (XE), and NuScale Power (SMR). 

However, GEV stock added about 2% on Wednesday. 

Engineering And Supply Chain Pressures

Ontario Power Generation officials pointed to ongoing engineering adjustments for the pioneering SMR design, alongside compounding supply chain disruptions, as the core drivers behind the timeline and cost adjustments. 

A representative for GE Vernova told Barron’s the company is committed to working through any issues affecting the project, which also may include “engineering, procurement and construction, as well as evolving market conditions, including inflation and geopolitical risks.” 

Clean Energy Benefits?

Prior to the recent delay announcements, the 300-megawatt unit carried an estimated price tag of roughly $5.4 billion. Approximately $4.3 billion of that total was earmarked directly for the primary unit, with the remaining balance allocated toward shared site infrastructure meant to support three future reactors.

When evaluating just the single unit's direct expenses, the project exceeds $14,000 per kilowatt. By comparison, establishing a new natural gas plant typically hovers around $2,500 per kilowatt, proving the nuclear reactors to be much pricier than alternative power solutions. 

GEV Stock: Retail View

Retail sentiment on Stocktwits towards GE Vernova was ‘neutral’ with ‘normal’ message volumes. 

GEV stock has gained about 22.5% year-to-date. 

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