Time to consider nuclear energy again

Sean Curry, Director of Investment Strategy & Research at Stonehage Fleming

Do the pros outweigh the cons for the green lobby’s former bête noire?

One unexpected consequence of the war in Ukraine is to boost the case for renewable energy. The simple fact that the crisis has pushed fossil fuel energy prices higher has certainly highlighted the economic arguments. From the point of view of energy security and resiliency too, the crisis seems to accelerate further the timeline of adoption.

In the short term, as we rapidly seek to eliminate the dependency on Russian energy, we will likely see a displacement effect where we source fossil fuel from other markets like the US.

Ultimately, the net effect of all these factors may be to make other options on the table more attractive, even if that means reconsidering those that, historically, have been more unpalatable for the environmental lobby.

Nuclear power has long attracted fierce debate on its role in the energy mix. It is, however, an increasingly effective option, capable of providing stable uninterrupted power in the fight against carbon emissions. In the West, public attitudes to nuclear have been distrustful for decades. But is it possible that ideology has got in the way of an honest appraisal of nuclear energy as part of the Climate Crisis solution?

Certainly, the Green lobby has been especially conflicted at times, often conflating the arguments against nuclear power with opposition to nuclear armament. The disaster at Fukushima in 2011 – the most severe nuclear accident since Chernobyl, 25 years earlier – created another opportunity to dismiss nuclear as a solution.

Today, if we are serious about the climate objectives we have to put all the zero emissions solutions on the table and look critically at all of them again. Germany, once staunch opponents of nuclear energy solutions, has pivoted and have re-examined extending the lives of existing nuclear reactors, something they were 100% against previously.

We are seeing significant build-out in other counties too. China is taking the lead with 14 reactors currently under construction; strong commitments have also been made in the UK and France.

Any relaxation of the opposition to nuclear energy is partly due to scientific advances. A new generation of technology is coming through which is having the effect of reducing the stigma around nuclear energy. Today, nuclear is quite a different proposition, offering a critical solution to the energy mix, at reasonable time scales and costs.

One thing is clear: the time for pragmatism is now. The planet cannot wait for uncertain timelines on other energy solutions. We should hedge ourselves with a reappraisal of a proven carbon free technology.