Skip to main content

Nuclear Technology’s Trail Out of the Valley of Death

When Bill Gates became Chairman of the Board of TerraPower a few years ago, the potential role of angels and venture capital to push energy technology forward became more apparent. Gates became involved with TerraPower because

of his belief that nuclear energy will play a key role in addressing the imperative to move to low-carbon or zero-carbon energy. Because energy is a critical element in global development, he has personally supported numerous businesses working to develop safe, affordable and environmentally-friendly sources of electricity. He is an advocate for dramatic increases in government spending on energy research and is a founding member of the American Energy Innovation Council.

Another Microsoft veteran, Nathan Myrhvold, is TerraPower’s Vice Chairman of the Board, so perhaps collegiality and friendship also play a part. In any event, they have helped TerraPower move forward.

Gates would be classified as an angel, an individual who materially contributes to startup projects. Venture capital played a part, too, with Charles River Ventures and Khosla Ventures working with TerraPower.

In startups, most definitely including technology startups, there is much discussion of the so-called “valley of death.” Forbes’ Martin Zwilling describes it thusly:

The “valley of death” is a common term in the startup world, referring to the difficulty of covering the negative cash flow in the early stages of a startup, before their new product or service is bringing in revenue from real customers. 

Zwilling continues:

According to a Gompers and Lerner study, the challenge is very real, with 90% of new ventures that don’t attract investors failing within the first three years. The problem is that professional investors (Angels and Venture Capital) want a proven business model before they invest, ready to scale, rather than the more risky research and development efforts.

Zwilling is offering advice to small entrepreneurs – and mostly steering them away from venture capital as antithetical to riskier new projects. That would seem to leave technology projects in the valley.

Investing in science and energy innovation is slowly swinging back into fashion in Silicon Valley. It seems like this is partly because of a backlash against the idea that Silicon Valley hasn’t been funding the world’s more difficult problems, and instead has been making easy money on things like social media apps.

That’s from Gigaom’s Katie Fehrenbacher, who uses the recent funding of Transatomic Power as the hook to launch an examination of venture capital and nuclear technology projects.  She focuses largely on a company called Helion Energy, a fusion project, and mentions TerraPower and General Fusion in passing. We looked at the Transatomic deal here.

Evan a few swallows don’t make a spring, but maybe it’s time to get out the binoculars as more birds flock. The projects described by Fehrenbacher are variegated in terms of technology – new ideas, revivals of older ideas, some fanciful ideas (fusion, of course – kidding!). It reflects the interest in nuclear as a “low-carbon or zero-carbon” producing energy source, perhaps a broadening of interest by venture capital firms and maybe more aggressive fundraising by project leaders. As a trail out of the valley of death, it’s encouraging - fewer brambles along the way, anyway.

Comments

Popular posts from this blog

Knowing What You’ve Got Before It’s Gone in Nuclear Energy

The following is a guest post from Matt Wald, senior director of policy analysis and strategic planning at NEI. Follow Matt on Twitter at @MattLWald.

Nuclear energy is by far the largest source of carbon prevention in the United States, but this is a rough time to be in the business of selling electricity due to cheap natural gas and a flood of subsidized renewable energy. Some nuclear plants have closed prematurely, and others likely will follow.
In recent weeks, Exelon and the Omaha Public Power District said that they might close the Clinton, Quad Cities and Fort Calhoun nuclear reactors. As Joni Mitchell’s famous song says, “Don’t it always seem to go that you don’t what you’ve got ‘til it’s gone.”
More than 100 energy and policy experts will gather in a U.S. Senate meeting room on May 19 to talk about how to improve the viability of existing nuclear plants. The event will be webcast, and a link will be available here.
Unlike other energy sources, nuclear power plants get no specia…

Making Clouds for a Living

Donell Banks works at Southern Nuclear’s Plant Vogtle units 3 and 4 as a shift supervisor in Operations, but is in the process of transitioning to his newly appointed role as the daily work controls manager. He has been in the nuclear energy industry for about 11 years.

I love what I do because I have the unique opportunity to help shape the direction and influence the culture for the future of nuclear power in the United States. Every single day presents a new challenge, but I wouldn't have it any other way. As a shift supervisor, I was primarily responsible for managing the development of procedures and programs to support operation of the first new nuclear units in the United States in more than 30 years. As the daily work controls manager, I will be responsible for oversight of the execution and scheduling of daily work to ensure organizational readiness to operate the new units.

I envision a nuclear energy industry that leverages the technology of today to improve efficiency…

Nuclear: Energy for All Political Seasons

The electoral college will soon confirm a surprise election result, Donald Trump. However, in the electricity world, there are fewer surprises – physics and economics will continue to apply, and Republicans and Democrats are going to find a lot to like about nuclear energy over the next four years.

In a Trump administration, the carbon conversation is going to be less prominent. But the nuclear value proposition is still there. We bring steady jobs to rural areas, including in the Rust Belt, which put Donald Trump in office. Nuclear plants keep the surrounding communities vibrant.

We hold down electricity costs for the whole economy. We provide energy diversity, reducing the risk of disruption. We are a critical part of America’s industrial infrastructure, and the importance of infrastructure is something that President-Elect Trump has stressed.

One of our infrastructure challenges is natural gas pipelines, which have gotten more congested as extremely low gas prices have pulled m…