Nucor (NUE) and Helion Partner on 500 MW Fusion Power Plant
Nucor Corporation NUE has announced a partnership with the fusion power company Helion to develop a cutting-edge 500 MW fusion power plant. This revolutionary project is set to provide continuous, zero-carbon electricity generated from fusion directly to a Nucor steelmaking facility.
Nucor and Helion are diligently collaborating to establish a definitive timeline, and they are fully committed to commencing operations as swiftly as possible, targeting the year 2030 for this ambitious endeavor. To expedite the deployment of fusion technology in the United States, Nucor is making a substantial direct investment of $35 million in Helion. This agreement represents the world's first fusion energy collaboration of such magnitude and holds the potential to spearhead the decarbonization of the entire industrial sector.
Helion, renowned for its innovative work in fusion technology, has already achieved significant milestones, including the construction of six operational fusion prototypes and the distinction of being the first private fusion company in the world to reach plasma temperatures of 100 million degrees. Presently, the company is in the process of constructing its seventh prototype, named Polaris, which is anticipated to be the first to demonstrate the generation of electricity through fusion.
David Kirtley, CEO of Helion, conveyed the company's deep commitment to reducing global reliance on carbon-based energy sources through the use of clean fusion power.
Nucor, which is among the prominent players in the steel space along with United States Steel Corporation X, Steel Dynamics, Inc. STLD and ArcelorMittal S.A. MT, known for its environmentally friendly production method centered around recycling, is already recognized as one of the world's most eco-conscious steel manufacturers. The circular approach of recycling scrap materials in electric arc furnaces ensures that Nucor's steel mills have a greenhouse gas emissions intensity that is three times lower than the average extractive blast furnace steelmaking plants.
Additionally, Nucor has taken a pioneering step by becoming the first major industrial company to join the UN 24/7 Carbon-Free Energy Compact, which is dedicated to expediting the global transition to carbon-free electricity systems and ensuring universal access to clean and affordable electricity.
Nucor reported earnings of $5.81 per share for second-quarter 2023, down from earnings of $9.67 per share in the year-ago quarter. Earnings per share, however, topped the Zacks Consensus Estimate of $5.59. NUE recorded net sales of $9,523.3 million, down around 19% year over year. The figure missed the Zacks Consensus Estimate of $9,733.8 million.
Another prominent steel maker, U.S. Steel logged second-quarter adjusted earnings per share of $1.92 per share, topping the Zacks Consensus Estimate of $1.86. Revenues fell around 20% year over year to $5,008 million in the reported quarter but beat the Zacks Consensus Estimate of $4,942.8 million.
Steel Dynamics, however, missed earnings estimates for the second quarter. Its earnings of $4.81 per share lagged the Zacks Consensus Estimate of $4.82. Net sales in the second quarter were $5,081.6 million, which also missed the Zacks Consensus Estimate of $5,405.5 million.
ArcelorMittal reported second quarter earnings per share of $2.20, surpassing the Zacks Consensus Estimate of $1.81. Total sales for the quarter were $18,606 million, a 16% year-over-year decrease, missing the Zacks estimate of $19,250.7 million, primarily due to lower steel selling prices and reduced steel shipments.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
ArcelorMittal (MT) : Free Stock Analysis Report
United States Steel Corporation (X) : Free Stock Analysis Report
Nucor Corporation (NUE) : Free Stock Analysis Report
