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U.S. Government and Bill Gates Get Behind Nuclear Power

Nuclear power got a boost from the infrastructure bill signed into law this week by President Biden that could at the very least forestall the industry’s decline. With government support and the endorsement of major investors like Bill Gates, nuclear power looks as if it has a place in a carbon-free future.

https://www.barrons.com/articles/the-u-s-government-and-bill-gates-get-behind-nuclear-power-51637177613



The legislation sets aside $6 billion to help fund nuclear plants in danger of closing. Several plants have needed help from the states where they are located in recent years because running nuclear plants has not always been profitable as other sources of electricity have become cheaper. A 2018 report from the Union of Concerned Scientists found that “more than one-third of U.S. nuclear plants are unprofitable or scheduled to close.” Having a federal financing program would ease the pressure on states and make it more likely plants could stay open.

Nuclear power accounts for about 20% of U.S. electricity generation today. While nuclear has been a controversial source of electricity for years, largely because of the waste it generates, it’s also a low-carbon fuel. Prominent climate scientists like James Hansen, the former director of the NASA Goddard Institute for Space Studies, have endorsed its use to replace carbon-emitting fuels.

The new law has other goodies for the industry too, including funding for the Energy Department’s Advanced Reactor Demonstration Program.

One project that will receive funding from the bill is a new advanced reactor in Wyoming being built by TerraPower, which was founded by Bill Gates. The TerraPower reactor is expected to be smaller than most traditional nuclear plants, but to have more highly enriched uranium. Theoretically, these kinds of projects could bring power to more remote areas. The TerraPower plant is expected to open by 2028 and replace a coal plant.

Several utility companies could benefit from support for nuclear plants, including Exelon (ticker: EXC) and NextEra Energy (NEE).

Nuclear power could get an even bigger boost from the Build Back Better bill now being debated, including from special tax credits.