Post by Artjoms Krizanovskis

The nuclear buildout starts before construction. The OECD Nuclear Energy Agency’s latest Nuclear Energy Outlook reflects what has become increasingly clear: demand for nuclear is no longer the question. Governments are placing nuclear back at the centre of energy security and decarbonisation strategies. Global electricity demand could increase by almost 50% by 2040, while AI giants are already exploring nuclear power through power purchase agreements, equity investments and other partnerships. The challenge is whether the industry can deliver it. The report estimates that OECD countries may need to increase concurrent nuclear construction from around 9 GWe over the past decade to more than 40 GWe in the 2030s under its Current Trends Scenario. Its Transformative Scenario would require as much as 300 GWe under construction at the same time, which is almost twice the historical OECD peak. Any expansion scenario requires rebuilding supply chains, expanding heavy manufacturing capacity, training skilled workers, developing bankable financing structures and moving from one-off projects to repeatable fleet deployment. The financing requirements illustrate the scale of the challenge. Global investment in new nuclear has averaged around $30 billion per year. Under the OECD’s Transformative Scenario, OECD countries alone could require almost $200 billion annually during the 2030s. For investors, this shifts the focus. Before hundreds of new reactors can be built, capital has to flow into the industrial capacity required to build them. Engineering, manufacturing, specialised supply chains, construction and project finance are not simply supporting industries, but prerequisites for nuclear expansion. If the next decade delivers the nuclear build-out many governments are targeting, some of the most attractive investment opportunities may lie not only in reactor developers, but in the industries required to build them. Read the full report: https://lnkd.in/ePRfHv8P