Investing in Nuclear energy - Point of view - Dan Dannenberg

The opportunity for Nuclear Power to be the answer to a growing electricity need is massive

• The global demand for electricity is expected to grow by 50% by 2050
• Nuclear is the only clean large-scale baseline electricity generation technology available today with almost no CO2 emission
• Since the 1970's, the need for more nuclear generation has been addressed through life extensions and power uprates but additional installed capacity from these initiatives is slowing down

New growth levers are therefore needed to boost nuclear capacity

• A second nuclear renaissance is under way
• Existing plant designs are the first lever to satisfy nuclear capacity growth: delayed plant shutdowns, de-mothballing of plants and new builds are all in process
• New designs are also being developed
• And new non-utility players are entering the fray to secure electricity supply

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But the road to the first kWh can be long and to first dollar of return even longer

• Regulations have been a major sticking point but are evolving
• Economics / construction times and resulting competitive position continue to be a challenge
• Value chain capabilities have decreased and need to be recovered
• The grid is a constraint and a bottleneck
• Public opinion on nuclear energy and waste is not always favorable

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Investors in this multi-decade asset class with strong tail winds need to make informed decisions on what type of actor to invest in, what geography to prioritize and what technology to focus on.

Emerton partners have advised companies to invest and grow in the nuclear industry for 30 years, developing worldwide strategies in New Builds, Services, Components, Fuel and Waste.

If you want to know more, you can download the full white paper, or contact Dan Dannenberg.