Skip to main content

Who Would Benefit From a Resurgence In Nuclear Energy?

Over at Marketwatch, Marshall Loeb, former editor of Money, says that there is money to be made in the American nuclear industry:
Expect construction of the first plants to begin about 2009-2010. But don't expect them to begin producing juice any time soon. The complex process of designing, winning regulatory permissions and building a plant devours at least a dozen years. At best, the first of the new nukes will start coming on line in about 2015.

But even before that, large numbers of people stand to benefit. Among them are producers of many sophisticated goods (steam generators, turbines, pumps, specialty steel and alloys), skilled craftsmen and professionals (pipefitters, welders, engineers, architects), uranium miners, and, of course, shareholders in companies that make and build the plants.

Alas, there aren't many of the last mentioned in the U.S. Only General Electric remains. And its nuclear business -- designing and building reactors and providing services and nuclear fuel -- is about $1 billion a year. Westinghouse, long the other major U.S. manufacturer, sold out in 1999 to British Nuclear Fuels Ltd., which in turn sold the business early this year to Japan's Toshiba.

However, many of the new nuclear plants are planned to be in the U.S. South, and railways, trucking and barge lines in the region are likely to benefit from a broad pickup in traffic.

Says Richard Myers, executive director of the Nuclear Energy Institute, a trade group: "All roads now lead to nuclear power. It's not the total solution to our energy challenges, but it is part of the solution."

The numbers are so big that being only part of the solution could be dramatically profitable.
Technorati tags: , , , ,

Comments

Popular posts from this blog

Fluor Invests in NuScale

You know, it’s kind of sad that no one is willing to invest in nuclear energy anymore. Wait, what? NuScale Power celebrated the news of its company-saving $30 million investment from Fluor Corp. Thursday morning with a press conference in Washington, D.C. Fluor is a design, engineering and construction company involved with some 20 plants in the 70s and 80s, but it has not held interest in a nuclear energy company until now. Fluor, which has deep roots in the nuclear industry, is betting big on small-scale nuclear energy with its NuScale investment. "It's become a serious contender in the last decade or so," John Hopkins, [Fluor’s group president in charge of new ventures], said. And that brings us to NuScale, which had run into some dark days – maybe not as dark as, say, Solyndra, but dire enough : Earlier this year, the Securities Exchange Commission filed an action against NuScale's lead investor, The Michael Kenwood Group. The firm "misap...

Wednesday Update

From NEI’s Japan micro-site: NRC, Industry Concur on Many Post-Fukushima Actions Industry/Regulatory/Political Issues • There is a “great deal of alignment” between the U.S. Nuclear Regulatory Commission and the industry on initial steps to take at America’s nuclear energy facilities in response to the nuclear accident in Japan, Charles Pardee, the chief operating officer of Exelon Generation Co., said at an agency briefing today. The briefing gave stakeholders an opportunity to discuss staff recommendations for near-term actions the agency may take at U.S. facilities. PowerPoint slides from the meeting are on the NRC website. • The International Atomic Energy Agency board has approved a plan that calls for inspectors to evaluate reactor safety at nuclear energy facilities every three years. Governments may opt out of having their country’s facilities inspected. Also approved were plans to maintain a rapid response team of experts ready to assist facility operators recoverin...

Nuclear Utility Moves Up in Credit Ratings, Bank is "Comfortable with Nuclear Strategy"

Some positive signs that nuclear utilities can continue to receive positive ratings even while they finance new nuclear plants for the first time in decades: Wells Fargo upgrades SCANA to Outperform from Market Perform Wells analyst says, "YTD, SCG shares have underperformed the Regulated Electrics (total return +2% vs. +9%). Shares trade at 11.3X our 10E EPS, a modest discount to the peer group median of 11.8X. We view the valuation as attractive given a comparatively constructive regulatory environment and potential for above-average long-term EPS growth prospects ... Comfortable with Nuclear Strategy. SCG plans to participate in the development of two regulated nuclear units at a cost of $6.3B, raising legitimate concerns regarding financing and construction. We have carefully considered the risks and are comfortable with SCG’s strategy based on a highly constructive political & regulatory environment, manageable financing needs stretched out over 10 years, strong partners...