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Why Is NANO Nuclear Energy (NNE) Stock Up 30% Today?

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Microreactor technology firm NANO Nuclear Energy (NASDAQ:NNE) saw its shares spike more than 30% on Monday following a potentially groundbreaking development. Management stated that it acquired a novel nuclear reactor cooling technology that may revolutionize the cooling and heat transfer process. The timing for NNE stock couldn’t be better as technological innovations — particularly artificial intelligence (AI) — have consumed large amounts of electricity.

According to the company’s press release, NANO acquired the intellectual property (IP) called novel annular linear induction pump (ALIP) from the physicist, research engineer and project manager Carolos O. Maidana, PhD of Maidana Research. In addition, Dr. Maidana will collaborate with the energy specialist as a consultant on developing the ALIP technology in a bid for regulatory approval.

Notably, the ALIP innovation is based on electromagnetic pumps rather than the traditional mechanical variety. Further, ALIP aligns with NANO’s ODIN, which is a clean energy, portable micro-nuclear reactor that’s currently in development.

As Eugene Shwageraus, NANO’s lead of Nuclear Reactor Engineering explained:

“[ALIP] allows pumping of electrically conducting liquids without moving parts. The technology will offer a major advantage to our ‘ODIN’ design. Forced circulation of coolant at normal operation will allow a substantial increase in the core power density, while improving reliability and reducing maintenance requirements.”

NNE Stock Rises on Significant Relevance

Another attribute of ALIP, per Shwageraus, is that the “low flow resistance of these pumps also improves the passive decay heat removal capability using natural circulation – another key feature of the ODIN reactor design.” NANO believes that ALIP can be commercialized as a separate technology for nuclear reactor clients, contributing to the rise of NNE stock.

On a broader fundamental note, NANO’s acquisition and technology can potentially forward the discussion of wider nuclear energy integration. Generally speaking, the political winds favor investing in renewable energy infrastructure. However, part of the reason why NNE stock is soaring is due to a key scientific attribute: energy density.

According to the Nuclear Energy Institute, “[o]ne uranium fuel pellet creates as much energy as one ton of coal, 149 gallons of oil or 17000 cubic feet of natural gas.”

In addition, the dramatic increase in energy consumption — especially from data centers running advanced AI protocols — is sapping a considerable amount of electrical capacity. As The Washington Post declared earlier this year, “America is running out of power.”

Nuclear power features the enormous density necessary to feed rising energy needs, making NANO’s innovation tremendously relevant. Given that context, it’s no surprise that NNE stock has taken off.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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