Investing in a world powered by nuclear fission

Fission occurs when a neutron comes in contact with a larger nucleus (say, Uranium-235). After absorbing the neutron, U-235 turns into the violently unstable U-236 and immediately splits into two smaller nuclei, releasing a tremendous amount of energy. Additional neutrons are also released from the fission reaction, subsequently striking other U-23... See more

Within the broad umbrella of SMRs and microreactors, though, there are a number of additional innovations.

Experts predict that solar and wind can meet ~70% of the world’s energy demands, but what energy sources will take up which shares of the remaining pie? The remaining must be covered by some combination of other low-carbon sources like hydro, biomass, geothermal, gas/oil with carbon sequestration, and, of course, nuclear.

There is also an innovation on the front of new fuels:

Pebble fuel: Typically used for HTGRs, fuel pebbles are meltdown-resistant small, solid pellets that encase uranium fuel (typically HALEU). The pellets retain fission products under all reactor conditions and are structurally more resistant to neutron irradiation, corrosion, and high temperatures than are traditional reactor fuels. TRISO (TRi-struc... See more

The heat released by fission in nuclear reactors must be captured and transferred for use in electricity generation. To this end, reactors use coolants (e.g., water) that remove heat from the core where the fuel is processed and carry it to electrical generators. Coolants also serve to maintain manageable pressures within the core.

The U.S. government is pushing hard to fund the development of fourth-generation SMRs and microreactors. The Department of Energy’s (DOE) Advanced Reactor Demonstration Program (ARDP) has allocated billions of dollars to startups, including $1.2 billion to X-Energy and $2 billion to TerraPower. Similarly, the Pentagon recently selected BWXT to deve... See more

Additionally, the heat engines that fission power plants use to convert fission energy into electricity (i.e., heat produces steam which turns a turbine) are incredibly inefficient. Another challenge for nuclear fission is optics and government backing. Demand for nuclear power has been heavily impacted by nuclear accidents. Today, nuclear power ha... See more

As a result, countries around the world have banded together to decarbonize the energy grid. Japan, Canada, and the EU have already passed legally binding net zero commitments, and more than 130 countries have now set or are considering a policy target of reducing emissions to net zero, including China (by 2060) and the U.S. (by 2030).

High-temperature gas reactors (HTGRs): In HTGRs, gasses (typically helium) act as the coolant that is fed directly into the turbine to produce energy. Helium is an inert gas, so it generally won’t chemically react with any material, and exposing helium to neutron radiation won’t make it radioactive. Helium can therefore be heated to higher temperat... See more