TSX:CPX - Post Discussion
Post by
retiredcf on Jan 15, 2024 9:20am
RBC
January 15, 2024
Quick Take: Enters into an agreement with OPG to assess the deployment of SMRs in Alberta
TSX: CPX | CAD 36.17 | Sector Perform | Price Target CAD 45.00
Sentiment: Neutral
Our view
• Given the early-stage of this assessment and with the likelihood that there will be limited near-term capital investments during this assessment stage, we do not expect this announcement to have a material impact on Capital Power's share price.
• Directionally, the themes associated with this announcement broadly align with those discussed in our RBC ImagineTM report, titled "Climate of change for nuclear energy". In this report, we highlighted that nuclear energy generation capacity is well- positioned to grow in North America and Europe over the long term, supporting nations' energy transition objectives by being a source of reliable and non-emitting baseload power for decades as well as being an industry that nations can develop to deliver stronger economic growth and relationships. We also noted that SMRs (small modular reactors) can offer real solutions (particularly given the downside risks associated with large-scale nuclear new builds) and that continued political and institutional support are necessary to maintain the technology's momentum. Please click here for more of our thoughts of the way forward for nuclear energy.
Details
• Capital Power has entered into an agreement with Ontario Power Generation (OPG) to jointly assess the development and deployment of grid-scale SMRs in Alberta.
-
Through the agreement, the two companies will examine the feasibility of developing SMRs in Alberta, including possible ownership and operating structures.
-
Capital Power and OPG will complete the feasibility assessment within two years, while continuing to work on the next stages of SMR development.
Be the first to comment on this post