OPINION | DAVID HESS
nuclear’s future outcome
Computing Decades of climate concerns and a global energy shock helped to make
the case for nuclear energy, but arguably did not lead to meaningful investment. The sudden and dramatic growth of AI and the massive energy requirements this entails looks like it will finally turn the tide
David Hess, Senior VP DeepGeo
WAVE OF RECENT BIG Tech company announcements reveals they have apparently committed en masse to nuclear energy and started openly investing in advanced nuclear developers. What started as a trickle quickly became a flood
as Google has signed power purchase agreements with Kairos that will support the future development and commercialisation of its KP FHR design, a TRISO- fueled molten salt technology; Amazon, alongside some partners, decided to invest approximately $500 million into X-energy and to support the initial project in central Washington. The companies aim to bring as much as 5 GW online by 2039; Microsoft has signed a 20 year power purchase agreement with Constellation Energy, which will lead directly to the restart of Three Mile Island unit 1; even
Apple quietly changed its environment statement to now recognise nuclear as ‘clean’ energy. The scale of Big Tech interest has not just benefited the nuclear companies listed, but appears to have lifted all boats – with both NuScale and Oklo noting very significant share price rises. The emergence of AI and the massive projected
©Alexy Kovynev
expansion of demand for 24-7 high-quality electricity, has arguably achieved for the global nuclear industry what decades of climate catastrophism and even a global energy crisis has not – broad acceptance of the centrality of nuclear energy in the low-carbon, resilient future energy system. Governments have (by and large) been convinced on the importance of nuclear energy for years, but now industry is really beginning to get onboard. Of course, these are not the first such expressions of support and investment from other industries. Major companies in the chemicals, steel and maritime sectors have made similar plans and commitments. However, there is something about the sheer size and centrality of Big Tech that makes this development impossible to ignore. People around the world will have seen the news, and if they had never given two thoughts about nuclear energy previously, they will have done so now. That other notable recent announcement, where 14
global financial institutions expressed their willingness to back the nuclear industry in reaching its 3X goal, shows just how much acceptance of nuclear energy has improved. What has emerged in the last month or so is a global private sector consensus on the importance of nuclear energy for the low-carbon energy transition. One nuclear financing expert shared the view that these announcements mark the start of a super-cycle of investments into the nuclear sector. Massive financing flows from multiple sources have finally been unlocked and will increasingly be directed into technology and project development. The 2011 Fukushima Daiichi nuclear accident marked a
“They say that Big Tech firms didn’t actually come up with the idea of using atomic energy for AI. It turns out the AI advised them to do so”
14 | November 2024 |
www.neimagazine.com
clear low point for industry prospects and effectively spelt the end of what was then widely referred to as the global nuclear renaissance. The public sentiment and prospects
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