‘This is the most exciting time I have seen in nuclear energy’ – the International Energy Summit
Nuclear energy has been a hot topic at the 10th AIEN International Energy Summit, so there was great interest in the dedicated session – ‘A Special look at Nuclear Power’.
Moderator Christopher Russo, Vice President, Charles River Associates, sat down with panelists Jeffrey Merrifield, Partner, Pillsbury; Troy Edwards, Partner, A&O Shearman; and Matt Kittell, Director, Sustainable Finance, Societe Generale, to get their views on the current state of the industry.
‘I think of nuclear as a slow-moving sector that is moving fast,’ said Kittell. ‘It is complicated, capital intensive and there is a lot of capital involved. I think there will be major advancements in the coming years with investments and projects. On the uranium supply and enrichment side, there are projects being approved now. On the advancement side, there is still work to be done. But, it is a very exciting time in the space.’
Edwards added: ‘Back in 2008, we had conversations about how nuclear was coming back. But then we had Fukushima. Now the conversation has come back, and it is ramping up. Electrification is a big driver, but there are also good reasons to invest – it brings stability. It is also helpful to appreciate the broader economic benefits of nuclear – yes, it is capital intensive, it can rack up in legal costs. But the benefit is much more. You create a huge company with a massive amount of jobs, and it becomes a huge taxpayer. Energy security is a driving force around the world. The chain of supply to produce nuclear energy is steady.’
‘This is the most exciting time I have seen in this arena,’ said Merrifield. ‘It is a different world – we’re not just talking about plants anymore, but also sorts of utilities. Different countries have different priorities, being carbon free in a couple of generations has driven this. The interesting thing in Washington DC, is that nuclear is a leading bi-partisan issue. Both sides strongly support it. The series of executive orders from President Trump helped to change the regulatory regime to allow this sector to proceed at pace.’
Russo then asked what could happen to make a source of funding more comfortable.
‘It’s a bit of a wait and see,’ said Kittell. ‘The Darlington nuclear generating station in Canada is a great case study, we’re all watching and the general mood to the market is that it’s going well, everything is on time etc. The signs are positive. From a comfort perspective from a lender, we like the names that are known to us and have a track record. But some of the newer players are building their first plant, they have partnerships with well-known names – who have lots of money that can be flung at projects. They can move a little faster. As milestones are being met and they demonstrate ability to meet construction objectives, the capital will start flowing’.
Finally, the panel was asked what could be done to overcome public perception on nuclear energy.
Merrifield said: ‘There is long-term polling which suggests a gap between perceived support and actual support. Actual support is higher, including at the government level across the board. I think we’re seeing a big turnaround.’
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