Jefferies sees Senate permitting deal as positive for NextEra

Investing.com -- Senate negotiators reached a bipartisan deal on a permitting package, according to a Wednesday report from Jefferies. More details are expected later this week.

Lead Democratic negotiators have not endorsed the final text and are seeking more clarity on what "return to regular order means" in terms of how the administration will adjust its policies for wind and solar projects. A vote is expected in the lame-duck session after midterms.

Jefferies said the lack of clarity itself could be the last hurdle before a lame-duck vote, calling this an incremental positive development compared to last week's update. The firm sees positive implications for original equipment manufacturers like NYSE:NXT and engineering and construction companies including NYSE:MWH. NextEra remains Jefferies' top pick in the clean energy space for inverters, battery energy storage systems and core business.

The firm noted that many investors remain skeptical of the impact even if the permitting package passes, and said the abandonment backstop in the bill is under-appreciated.

X-energy announced completion of vertical construction for the TX-1 facility and is now moving toward construction inside the building. Once operational, TX-1 is expected to produce 5 million tonnes of uranium, sufficient for 11 Xe-100 reactors. Jefferies called this a small positive development following recent HALEU supply agreements with Centrus and General Matter.

Sunrun announced a partnership with SPAN and a 580 megawatt dispatch event in California. Jefferies said Sunrun continues to demonstrate the value of its distributed power plant.

Fervo achieved first power at Cape Station and received two Department of Energy awards in Nevada and Idaho totaling about $20 million.

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