Post by Jon Treitel, CFA, CAIA

Two big pieces of news this week for #nuclear power and #infrastructure. On June 23, the Department of Energy's new Office of Energy Dominance Financing committed up to $17.5 billion in loans to finance new nuclear reactors. The program targets the single biggest bottleneck in new nuclear — reactor vessels, steam generators and other long-lead items. While it will take time to develop such facilities, the news is a strong signal that the power market for baseload could remain tight for years to come. This supports existing power and generation owners in listed infrastructure. The DOE news came in in the same week that #ConstellationEnergy— the nation's largest nuclear operator — signed a long-term power purchase agreement with Walmart for emissions-free electricity from its nuclear reactors. Terms spanned 15 years beginning in 2029. What do we see? That the demand for zero-carbon baseload power is broader, and more durable, than any single sector. https://lnkd.in/ezRU42vU