Nuclear energy is an unlikely friend of environmentalists. Some remain opposed to nuclear electricity generation because of waste issues and safety concerns. However, a significant number of environmental advocates support nuclear because it is a potential workhorse that could make up much of the shortfall in electricity needs as generation transitions away from hydrocarbon energy sources and renewables such as wind and solar remain unable to take up the slack. European countries which embrace nuclear, such as France, have done much better at reducing greenhouse emissions than the countries which tried to shun nuclear, such as Germany. And further afield, countries such as India are in the forefront of developing exotic nuclear technologies such as thorium reactors.
Another development we read about recently is the advent of tiny reactors, a fraction the size of traditional fission reactors. NuScale, a nuclear upstart, contends that these tiny reactors — 100 of which could fit inside a traditional plant’s containment vessel — will be cheaper, safer, and vastly more convenient to deploy. The safety angle is paramount, since the reactors’ size means that failures would be much more easily contained — and concerns about nuclear accidents have chilled U.S. nuclear investment for decades. As more and more U.S. nuclear plants approach their age of decommissioning, the appetite for more nimble nuclear solutions is growing.
NuScale’s reactors are in the process of undergoing a grueling regulatory review; radical new designs for established engineering goals tend to undergo great scrutiny from regulators. Still, U.S. and European regulators are cooperating to assess the new technologies from NuScale and other nuclear startups. The first reactors may see service in the U.S. by 2027, boosted by zero-hydrocarbon pressure from other policymakers.
Investment implications: New nuclear technologies may lead to a nuclear renaissance as legislative pressures for zero-carbon generation rise around the globe. Keep your eyes open for publicly traded nuclear startups in coming years.
