Nu(clear) kid on the block… There’s a new power player in the nuclear biz: this week renewable behemoth Brookfield Renewable Partners and uranium powerhouse Cameco agreed to buy Westinghouse Electric for $7.9B. Because Westinghouse services about half the world’s 440 nuclear reactors, the deal could revitalize the sector.
- Big turnaround: Westinghouse went bankrupt in 2017 as nuclear demand fizzled. But the company’s sale price is 70% higher than four years ago thanks to renewed demand.
Fission for compliments… Many seem to love nuclear now that Putin has destabilized global natural-gas supplies. The amount of global electricity produced by nuclear energy has fallen from 18% in the mid-’90s to 10%, because of disasters including Chernobyl. But now countries are reconsidering nuclear, which has lower emissions than fossil fuels:
- California recently voted to keep its last nuclear plant open, reversing plans to close it.
- Germany’s debating whether to keep its remaining plants open, despite plans to close them by the end of the year (even Greta Thunberg wants them to stay open).
- Japan is reopening old plants as part of a bigger nuclear reboot.
- China just approved six nuclear plants and plans to double its nuclear capacity by 2030. — which would give it more plants than the rest of the world combined.
Renewed profitability offers a path to revival… One reason nuclear plants dwindled in recent decades was they were expensive to build, and oil delivered more immediate energy profits. But Westinghouse’s sale shows nuclear’s profit potential: Brookfield Business Partners made a $4.5B profit in four years on its Westinghouse stake. Nuclear investments are expected to continue: experts say nuclear generation must double by 2050 to hit net-zero goals.