Bill Gates, the Microsoft (MSFT) co-founder and billionaire philanthropist, has officially broken ground on America's first next-generation nuclear facility in Kemmerer, Wyoming. This groundbreaking event marks a significant milestone in the pursuit of clean, reliable energy and has caught the attention of investors looking toward the nuclear sector for potential opportunities.
A New Chapter in Nuclear Energy
The new facility is being developed by TerraPower, a company Gates founded in 2008 with the vision of revolutionizing nuclear energy. The plant will utilize the Natrium reactor design, an advanced nuclear technology that promises enhanced safety, efficiency, and reliability. Unlike traditional reactors, the Natrium reactor uses liquid sodium instead of water for cooling, reducing the risk of high-pressure accidents.
In his personal blog, Gates expressed his enthusiasm for the project: "I just left the groundbreaking ceremony for the first-ever Natrium plant, which will bring safe, next-generation nuclear technology to life right here in Wyoming. It’s a huge milestone for the local economy, America’s energy independence, and the fight against climate change," Gates wrote on Gates Notes.
During an interview with NPR's Steve Inskeep, Gates emphasized the safety advancements of the new design. "The safety case for this design is incredibly strong just because of the passive mechanisms involved," Gates told NPR. "People have been talking about it for 60 years, that this is the way these things should work."
Economic Revival in Kemmerer
The small town of Kemmerer, once reliant on coal mining, is experiencing an economic renaissance due to the project. Local businesses are thriving, and new developments are underway. "I’m thrilled to see so much economic growth happening," Gates noted in his Gates Notes article. The plant is expected to create approximately 1,600 construction jobs and provide long-term employment opportunities once operational.
Investor Spotlight: Opportunities in Nuclear Energy
While TerraPower remains a privately held company—bolstered by over $1 billion of Gates's own investment—its advancements have shone a spotlight on the nuclear energy sector, piquing investor interest in publicly traded companies working on similar technologies.
One such company is NuScale Power (SMR), a leader in developing small modular reactors (SMRs). NuScale's technology mirrors the innovative approach of TerraPower, focusing on safer and more efficient nuclear solutions. According to a recent article by Jeremy Bowman in The Motley Fool, NuScale's stock has surged over 400% this year. Bowman writes, "NuScale Power is well-positioned as a leader in SMRs. For patient, risk-tolerant investors, getting a small amount of exposure to NuScale Power could pay off handsomely".
Similarly, Oklo Inc. (OKLO) is a Sam Altman-backed nuclear power company that has been on a tear in recent months. While it saw an initial decline after going public, it's now well above it's IPO price, and rallied over 250% in the past month.
The AI Connection and Energy Demand
The rise of artificial intelligence has created an unprecedented demand for electricity, particularly for data centers powering AI applications like ChatGPT. Gates highlighted this connection, stating, "The additional data centers that we'll be building look like they'll be as much as a 10% additional load for electricity," in his interview with NPR. Tech giants such as Microsoft, Alphabet (GOOG) (GOOGL), and Amazon (AMZN) have recently signed deals for nuclear energy to meet these growing energy needs sustainably.
Government Support and Climate Goals
The TerraPower project is not just a private endeavor; it has significant backing from the federal government. The U.S. Department of Energy's Advanced Reactor Demonstration Program is funding half of the project's estimated $4 billion cost. This partnership underscores the importance of advanced nuclear technology in achieving national climate objectives.
"To meet our economic and climate goals, we need more abundant clean energy, not less," Gates wrote on Gates Notes. "Today, we took the biggest step yet toward safe, abundant, zero-carbon energy."
Looking Ahead
The Nuclear Regulatory Commission accepted TerraPower's construction permit application for review, a critical step towards making the plant operational by its target date of 2030. As the review process unfolds, TerraPower will continue developing the non-nuclear components of the facility.
For investors, the renewed focus on nuclear energy presents potential opportunities. While investing directly in TerraPower isn't possible, companies like NuScale Power offer a way to participate in the industry's growth.
Conclusion
Bill Gates's commitment to advancing nuclear technology represents a significant stride toward a cleaner energy future. As TerraPower's project progresses, it not only revitalizes a small Wyoming town but also signals a broader shift in how the world approaches energy production. Investors keeping a close eye on the nuclear sector may find promising prospects as the demand for clean, reliable energy continues to rise.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
