NASA's New Moon Base Contract Could Be an Out-of-This-World Opportunity for This Under-the-Radar Nuclear Power Stock

NASA is forging ahead with plans to establish a long-term Moon base. Last week, the agency submitted requests for proposals to meet five very specific needs related to such a mission. These requests include a means of extracting oxygen from the lunar surface, and solar power systems.

Perhaps the most noteworthy need, however, is a particular kind of nuclear power plant called a Stirling radioisotope generator. A handful of companies have successfully developed them, but only one company has successfully proven its design's long-term functionality for NASA.

And that company is a subsidiary of a relatively unknown publicly traded outfit.

What's a Stirling radioisotope generator?

You may know that most modern-day nuclear power plants split uranium atoms to heat water into steam, which is then used to spin a power-generating turbine. This approach isn't feasible on the Moon's surface, however, where water is scarce.

That hurdle doesn't necessarily dismiss the possibility of using simple and efficient nuclear power at the planned lunar base, though. A Stirling radioisotope generator that utilizes the heat naturally generated by decaying radioactive material (like plutonium-238) could do the job as well.

In simplest terms, a Stirling generator is a device that freely pushes a piston back and forth within a cylinder. It's not spinning a conventional crankshaft, though. Rather, the movement of a magnet at the end of the oscillating piston produces an electrical current.

Image source: Getty Images.

The idea has been proven for some time now. It's just not particularly popular because it's not as efficient as alternatives. But it does offer one big advantage over other options: It's much easier to transport to the Moon, and is incredibly reliable. How do we know? Because a company called Sunpower made a working prototype for NASA that's been running continually for over 17 years.

Not that Sunpower

This isn't the same SunPower that makes solar panels, by the way. The Sunpower in question is a subsidiary of a company called Ametek (NYSE: AME), which makes a range of electronic instruments and electromechanical devices. With a well-established working relationship with NASA, though, it's arguably got an inside track with the space agency's latest request.

It's not clear how much business is up for grabs with this opportunity. Although whatever final choice NASA ends up making for its planned Moon base will likely be shockingly expensive, it's a one-off.

There's opportunity well beyond winning the contract for the lunar station's power source, however. Sunpower's Stirling generator technology is the basis of the cryogenic cooling solution that's now been launched into space more than 230 times. It's increasingly a top power-production option onboard spacecraft and satellites -- particularly those with long-term missions -- too, due to its reliability. Putting its equipment on the Moon could be a significant marketing victory for Ametek's Sunpower.

Worth watching

Again, it's still not exactly clear how much money is up for grabs stemming from NASA's recent request for proposals, and there's certainly no clarity as to how much business might be created by winning such a contract. It could also be years before it fiscally mattered. It's certainly something investors may want to put on their long-term mental radar, along with Ametek itself.

James Brumley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.