Taking the Investment Pulse: Q1 2024

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Markets & Finance

Kayley Deaton

May 2, 2024

As the economics of new nuclear energy continue to improve, a different refrain is making the rounds amongst detractors: the opportunity has simply passed. But the alternative—leaving nuclear out of the equation—paints a bleak picture. Higher emissions, a more expensive energy transition, less reliable grids, and on and on.

Ultimately, nuclear energy is here to stay: In April alone, Constellation and PSEG both announced they were seeking to extend the lives of existing nuclear power plants, Plant Vogtle’s new units officially began powering 1 million homes and businesses in Georgia, and customer deals for nuclear technology were signed.

DOE’s Julie Kozeracki perhaps said it best: “It would have been better to start five years ago. But the second-best time is right now.” Let’s break it down.

Trends

Star of the Show(s): Coming off of the “nuclear COP,” you’d be forgiven for thinking it couldn’t get much better than that. But nuclear’s star shines on. 2024 started strong with Georgia Governor Brian Kemp and Dow CEO Jim Fitterling name-dropping nuclear energy at the World Economic Forum in Davos. NEI hosted its second (and standing-room-only) Nuclear Financing Summit in NYC, bringing together customers, investors, technology providers, and Wall Street analysts. And CERAWeek followed COP28’s lead, with Texas Commissioner Jimmy Glotfelty summing it up nicely: “Other than the amount of load growth, AI, data centers…the word I’ve heard most around here is nuclear.”

Energy Demand: Speaking of load growth, surging demand for energy seems to be all anyone can talk about these days. The International Energy Agency (IEA) predicted earlier this year that global energy consumption from data centers could double by 2026—that’s the same amount as Japan’s annual energy consumption today. In Texas alone, data mining centers have requested the equivalent of 41 nuclear power plants to fuel their operations. Thankfully, NEI’s new PowerUp series aims to assist industries scrambling to find clean, reliable energy.

Large Reactors: The sheer volume of energy demand is enough to make your head spin. It’s bringing large nuclear reactors back into the conversation—be it brand-new reactors or extending the lives of our current fleet. Not only can they fulfill some of today’s demand from data centers, but they can also help us meet our lofty 2050 net-zero goals. Since closing New York’s Indian Point nuclear facility, New York City’s grid has become dirtier than the U.S. average. The benefits of Plant Vogtle can be a reality across America and the rest of the world—and interest is growing. In March, Alberta’s government made clear that they were reconsidering conventional nuclear to meet the province’s needs.

Announcements

With historic restarts of nuclear plants, regulatory wins, and a new uranium ETF on the market, nuclear energy made plenty of moves this quarter.

U.S. Developments

Nuclear checks all the boxes if we want it to.

David Ulevitch, general partner at VC firm Andreesen Horowitz

International Developments

It may take some time still, but I believe that society will eventually settle on nuclear power as a compromise solution for baseload power generation.

Praetorian Capital’s Q4 2023 Investor Call

Commentary

Whole industries, thought leaders, and local communities are pointing to nuclear energy as smart business—and investors are listening.

It’s shaping up to be a busy year for nuclear energy, and it’s not slowing down. Tune in next time for Q2 2024. That’s not pollen in the air; it’s the smell of new customer deals…