If you keep up with the goings-on of the financial sector, then you know that nuclear energy is coming up more and more frequently in conversations on Wall Street. From private equity firms to investment banks, the financial community is seeing the promise that nuclear energy holds.
“Small-scale nuclear is something that could have a lot of impact.” - @BlackRock’s Adi Blum during a panel on the role of private capital in funding the energy transition at @CERAWeek.
— Nuclear Energy Inst. (@NEI) March 8, 2023
Here is an update on some of the exciting developments from the last six months:
Announcements
According to Pitchbook data, the number of deals related to nuclear investments has increased by 400 percent between 2015 and 2022. It’s clear the demand for nuclear is gaining steam across the financial sector.
- Westinghouse Electric was sold to Brookfield Renewable Partners and Cameco in a $7.9 billion deal.
- TerraPower announced a successful fundraise of $830 million, rounding out the top 10 venture capital deals made in the third quarter of 2022.
- X-energy announced it was going public, resulting in a $2 billion merger with Ares Acquisition Corporation. Soon thereafter, Korean investors, Doosan and DL E&C, invested $130 million in the company.
- NANO Nuclear Energy announced an oversubscribed fundraise of more than $4 million.
- Pelican Energy Partners, a private equity firm that has historically invested in oilfield services, announced a new fund strategy dedicated to the nuclear industry.
- Asset manager VanEck launched their nuclear and uranium ETF in Europe, allowing investors pure-play exposure to the nuclear industry as a whole. BlackRock indicated they may be following suit after consulting their clients.
Industry Insights
Alongside these announcements, there has been a rush of research reports published by financial industry professionals. Asset managers and financial institutions are recognizing nuclear energy as a critical investment in both clean energy and energy security.
- Brookfield Asset Management released a white paper analyzing the global trends toward nuclear energy, recognizing a “new dawn for nuclear power.”
- ClearBridge Investments reported that the “energy transition requires a nuclear foundation” and broke down the investment potential of existing and advanced nuclear.
- HANetf released a survey that found 88 percent of wealth managers had recently invested in nuclear energy or uranium focused funds.
- The Center for ESG and Sustainability found that nuclear energy was a strong ESG performer and an investible asset. Cowen’s equity research team agreed and gave NuScale Power a positive ESG rating.
- Fund managers have also listed nuclear-related stocks in their top picks during interviews with Business Insider and CNBC.
Events
And it’s not just fundraises and findings—nuclear energy is making a splash at conferences across the world, too. Wherever people are talking about the climate crisis, energy security, and the economy, nuclear energy is coming up in conversation.
- NEI and JP Morgan co-hosted the Nuclear Financing Summit late last year that brought together asset managers, CEOs, and government ministers.
- The World Economic Forum at Davos hosted an exclusive showing of Oliver Stone’s new documentary “Nuclear Now.” In addition to receiving a warm reception in the room, nuclear-related stocks experienced a boost.
- The premier energy conference in the world, CERAWeek 2023, showcased nuclear energy more this year than in any previous year—with NEI President and CEO Maria Korsnick speaking on a panel about nuclear’s role in the energy transition.
- One of Reuters’ flagship events of the year, Global Energy Transition, brings together global executives and policymakers and will feature important nuclear discussions.
Nuclear energy is proving its worth to Wall Street. Its ability to simultaneously decarbonize whole economies, ensure energy security for countries, and provide reliable energy to communities means that an investment in nuclear energy isn’t just a sustainable one—it’s a profitable one.
