Three Mile Island. Chernobyl. Fukushima.
Do these names sound familiar to you?
Well, of course they do.
These are nuclear accidents. Well-known. Notorious.
They are forever burned into our collective memory. They have created fear. And this fear has left a lasting legacy on our perception of safety.
An artist’s impression of the city of Pripyat in Ukraine. It was once home to 49,000 people,
but it has been left abandoned after the Chernobyl disaster in 1986.
Source: Image generated by OpenAI’s DALL-E
Why are people so scared of nuclear power? Well, there are three main reasons:
- They are worried about the possibility of radiation leakage.
- They are worried about the disposal of radiation waste.
- They are worried about the spread of nuclear weapons.
Of course, these emotions are understandable. Given the bad press, it’s natural to be cautious. However, is nuclear power entirely evil? Or…does it actually have a positive place in our energy ecosystem?
- Well, right now, consider this. There’s a lot of talk about ‘cutting emissions’ and ‘net carbon zero’. Climate-change activists are pushing for a total switchover to renewable energy. They believe the planet’s future is at stake. So going clean and green is a matter of urgency.
- I understand their passionate conviction. However, their dream isn’t feasible just yet. Hydro, wind, and solar are facing some serious logistical constraints. They just can’t deliver. Not in terms of scale. Not in terms of capacity. Not in terms of output.
- In fact, renewables only make up roughly 15% of our global energy supply. They are not quite ready for primetime. Geopolitical analyst Peter Zeihan sums it up like this: ‘Would you try to fly a kite when there’s no breeze? Or try to surf when there are no waves?’
Source: Visual Capitalist
So, we have a tricky situation here. Where green ideology doesn’t necessarily match up with green reality. Therefore, despite its controversial nature, nuclear power may still have an essential role to play. Here’s why:
- A small amount of nuclear fuel can produce a large amount of power. This high energy density is far superior to other renewables. This means that a nuclear reactor could be a compelling option for meeting high demands without a large physical footprint.
- Unlike hydro, wind or solar, nuclear power isn’t limited by ecological patterns or weather conditions. This means that nuclear power could offer us a consistent and reliable energy source.
- Advanced nuclear reactors have the potential to provide energy for thousands of years. Greenhouse emissions are close to zero.
Source: Our World in Data
It’s also worth noting that the anxiety over nuclear energy may have been overplayed by the media. Here’s why:
- Our World in Data has done a hypothetical analysis. If an imaginary town has 150,000 people, how many of them would actually die from different sources of energy generation? Well, the results are surprising.
- If the town is powered only by coal — 25 people would die prematurely every year.
- If the town is powered only by gas — 3 people would die prematurely every year;
- If the town is powered only by hydro — In an average year, 1 person would die.
- If the town is powered only by nuclear — In an average year, nobody would die. A single death would only happen once every 33 years.
So, here’s the heart of the matter:
- All the nuclear disasters that we’ve seen so far have happened only in power plants built with 1960s technology.
- However, the next generation of power plants — designed for the 21st century — promises to be cleaner, greener, and safer.
- Right now, over 60 nuclear reactors are being constructed now all around the world. The economic impact of this revival could be profound. The market is expected to expand. The entire supply chain stands to benefit.
- Are we seeing the beginning of a nuclear renaissance? Is a new energy boom about to happen? What’s the smart way for speculative investors to gain exposure to this trend?
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