Over the past several months, progress has been reported with so-called small modular reactors (SMRs). Many energy analysts believe SMRs represent the future of nuclear power given they are smaller and more manageable with lower capital requirements. On June 2, TerraPower and PacifiCorp announced plans to advance their SMR project in Wyoming. The project is notable because of its backers: TerraPower was founded by Bill Gates, and PacificCorp is owned by Warren Buffett’s Berkshire Hathaway. The project will consist of a 345-megawatt reactor joined with a molten-salt-based energy storage system providing peak output of 500 megawatts. It is expected to cost $1 billion.

Ontario Power Generation announced it will imminently select a design for its own 300-megawatt SMR project that is expected to be operational by 2028. The company budgeted $3 billion for the project. It will be the first Canadian nuclear plant built in more than 30 years.

Nuclear power demand growth will come mostly from the developing world, notably China. On July 13, China commenced construction of the world’s first land-based SMR. Linglong One is a 125-megawatt reactor located on the island of Hainan that is expected to be operational by 2026.

Meanwhile, the Dutch government is moving forward with its long-term plan for new nuclear generating capacity. Following a widespread backlash against renewable power, a motion was adopted in the Dutch House of Representatives in late 2020 calling for a study into new nuclear power plants in the Netherlands. KPMG prepared the study and ultimately consulted with 41 contractors, operators and investors. The report was made public on July 8 and showed support for various solutions. The next step will be a further study of how nuclear power can be used to mitigate carbon emissions. The Netherlands is a fascinating example of a country dealing with the inherent limitations of wind and solar generation and looking at nuclear power as the only feasible way of providing carbon-free baseload power.

Lastly, in an interesting turn of events, several bitcoin mining operators announced partnerships with SMR developers to provide carbon-free electricity. Bitcoin mining has come under scrutiny over its substantial energy requirements. Were Bitcoin mining a country, it would be the 25th largest electricity consumer in the world. As a result, major Bitcoin operators have become sensitive to their carbon emissions. Instead of looking at renewable sources, with their inherent limitations, several Bitcoin mining operators have partnered with nuclear power providers. Bitcoin miners are nothing if not economically sensitive. Given their need to reliably consume huge amounts of power and their newfound desire to reduce carbon emissions, it is telling they chose nuclear power as their preferred solution.

This story was excerpted from a report written by Leigh Goehring and Adam Rozencwajg, managing partners at Goehring & Rozencwajg Associates, a firm that invests in commodities and natural resources.