NextEra says Iowa nuclear plant restart could come as soon as the end of 2028

Investing.com - Nextera Energy (NYSE:NEE) has said it is making progress in evaluating the recommissioning of its Duane Arnold nuclear power plant in Iowa and could restart operations at the location by the end of 2028, the company said on Friday.

A surge in demand for power needed to support the data centers that underpin the development of artificial intelligence has recently bolstered the electric utility industry.

The trend has subsequently supported a rebound in the nuclear industry after a period of weak economics and worries around safety contributed to the shuttering of more than a dozen reactors since 2012.

In a statement, NextEra said it had filed notice with the Nuclear Regulatory Commission to request a licensing change, calling it "an important first step" in establishing the pathway to restoring the Duane Arnold site's operating license and potentially reopening it by the end of 2028.

The longer a nuclear plant remains shut, chances increase that there could be corrosion or other issues affecting the site. Duane Arnold, which was closed in August 2020, is seen by analysts as one of the likely candidates to reopen because it was shut down relatively recently, Reuters has reported.

Earlier this week, the Wall Street Journal reported that Santee Cooper is seeking buyers to revive construction on a pair of nuclear reactors in South Carolina that was halted years ago. Microsoft (NASDAQ:MSFT) has previously announced a deal with Constellation Energy (NASDAQ:CEG) to reopen Pennsylvania's Three Mile Island as well, while Google-owner Amazon (NASDAQ:AMZN) has signed agreements to help fund nuclear-power projects.

Other groups, including Google-owner Alphabet (NASDAQ:GOOGL) and Facebook-parent Meta (NASDAQ:META), have also shown interest in backing other nuclear-power proposals.

Elsewhere, Florida-based NextEra, whose operations include a sizeable US-regulated electric utility and the world's biggest renewables business, reported adjusted earnings per share of $0.53 in the fourth quarter, compared to Bloomberg consensus estimates of $0.54 and $0.52 a year-ago.

Operating revenue came in at $5.39 billion, well below expectations of $7.7 billion.

Still, NextEra backed its current year forecast for adjusted per-share income of $3.45 to $3.70, and its 2026 outlook of $3.63 to $4.00. The company also sees an annual growth rate of 6% to 8% through 2027.

"Given the strength of both of our businesses, we will be disappointed if we are not able to deliver financial results at or near the top of our adjusted earnings per share expectations ranges in each year through 2027," CEO John Ketchum said in a statement.

Shares in NextEra dipped by more than 2% in premarket US trading.