Going Nuclear
Before we look at the nuclear option, we note that a subsidiary of Zhejiang Akcome New Energy Technology Co has become the latest solar panel manufacturer to declare bankruptcy. This follows quickly after another smaller manufacturer, Gansu Golden Solar Co, entered a pre-reorganisation process earlier this month. Expect many, many more to fall by the wayside.
This is not because China is holding back on rolling out renewable, quite the reverse. An interesting article published by The Guardian recently compared global solar and wind power projects currently under installation. China accounted for a staggering 64.5% of the total with the US next at 7.6%. No other country accounted for more than 2.5%. Indeed, the Asia Society Policy Institute recently suggested that China’s National Bureau of Statistics is severely underreporting renewables power generation as it does not include, amongst other things, rooftop solar.
A recent survey, attributed to the OECD, asked the question “Would you be willing to live near a …..” Over 80% of respondents replied “no” to landfill sites, waste incinerators, large airports and chemical facilities. Interestingly nuclear, at 35%, recorded the lowest “no” vote among the nine other options which included wind farms, high voltage transmission cables and mobile relay stations.
Oklo Inc, an advanced nuclear technology company based in California, estimates that a 15MW (scalable to 50MW) reactor with a 40 plus year life could be installed on just a two-acre site within 12 months and cost just $70mn. Oklo provides nuclear fission reactors which can be fuelled by recycled nuclear waste. We understand that spent fuel, similar to naturally occurring uranium, only contains around 1% of the all-important U-235 isotope (capable of sustaining a chain reaction in a thermal-neutron reactor) compared to the 5% needed for a traditional pressurised water reactor.
If ‘nimbyism’ is not a problem, as the OECD survey suggests, watch out for a small nuclear power plant in your neighbourhood! For the adventurous investor Oklo is New York listed.
If you would like to receive The Daily Update to your inbox, please email markets@epicip.com or click the link below.