Today, nuclear power boasts 20,000 years of reactor experience and supplies 31 countries, plus Taiwan, as well as being an energy mainstay for others via regional grids, notably in Europe. The industry, once divided between East and West, is now a global market where reactor components can be sourced from different continents, as can the uranium used as fuel. Beyond electricity, nuclear power supports healthcare, the fight against disease, the conquest of space, and now big data with AI.

In 2023, 14 countries produced at least a quarter of their electricity from nuclear power. France is the most nuclearized country, with 57 reactors in 19 power plants, generating 320.4 TWh, or almost 65% of electricity production in mainland France. This makes the country's nuclear fleet the third largest after the USA (93 nuclear reactors) and China (56 reactors, with a further 14 under construction). Nuclear power will therefore account for around 9.1% of global energy production in 2023.

However, we seem to be reaching the end of a cycle for nuclear power as we know it. There are 440 nuclear reactors in operation worldwide today, 4 fewer than in 2020, although 60 are under construction. We all know just how long it takes to build a power plant, often 2 decades. The low level of plant renewal in the West over the past 50 years has led to the advanced age of our reactors: in all countries, the average operating nuclear reactor has been in operation for almost 31 years, with the oldest reactors having been in operation for over 52 years (5 reactors), according to the IAEA. 

There is a clear need for new generation capacity worldwide. The main aim is to replace obsolete fossil-fuel power plants, especially coal-fired ones, which are major emitters of carbon dioxide, while at the same time meeting the growing demand for electricity in many countries.

In a context where long-term environmental and economic concerns predominate, nuclear power presents itself as a prime alternative, particularly in times of soaring fossil fuel prices. Nevertheless, it is essential to recognize that nuclear power is not without environmental consequences. The construction of power plants consumes resources such as cement and steel, and the risks of water and soil contamination in the event of an incident are not negligible.

What's more, inappropriate operation or poor management of nuclear waste can have disastrous repercussions on a region and its inhabitants for decades, even centuries. The disasters at Chernobyl (1986) and Fukushima (2011) are still fresh in the minds of many. Against this backdrop, positions have hardened, leading to a polarization that complicates the search for consensual and sustainable solutions. The challenge of reconciling nuclear safety with energy and environmental imperatives remains a major one, testifying to the complexity of reconciling stakeholders.

New-generation technologies

The nuclear technologies of the future cover a wide range of innovative solutions. Some are already operational on a small scale; others are at the conceptual stage, whose feasibility has yet to be demonstrated, and which sometimes require major technological hurdles to be overcome.

New nuclear reactor technologies can be grouped into three main categories: fourth-generation reactors, small modular reactors (SMRs) and innovations designed to significantly improve the safety and operating life of existing power plants.

The term "Generation IV" was coined by the Generation IV International Forum (GIF), set up in the early 2000s by the US Department of Energy. These new reactors are still in the development phase, as they have to meet a number of objectives: saving the use of natural resources, minimizing nuclear waste, reducing construction and operating costs, enhancing safety and limiting the risk of nuclear proliferation. The first six models are due to enter service in 2030. 

Tech giants, meanwhile, are turning to SMRs (small modular reactors), more compact but less powerful models (between 20 and 300 MWe per unit, compared with 900 to 1650 MWe for Generation III EPRs). For the time being, projects for small SMR reactors are still in their infancy. Their modularity would enable them to be mass-produced in factories and then assembled on site. Two questions remain unanswered: it is not yet certain that the production cost will be lower than that of a conventional reactor, and their total safety has yet to be demonstrated.

However, this hasn't stopped certain players from taking an interest in the projects. Amazon has invested $500 million in X-energy to develop nuclear reactors, and has purchased land next to a power plant in Pennsylvania for a new data center. Similarly, Google(Alphabet) plans to buy nuclear power from US start-up Kairos Power, to be produced by SMRs by 2030. Finally, Microsoft has also signed an agreement to purchase nuclear power from Constellation Energy, with plans to contribute to the re-commissioning of part of the Three Mile Island plant, site of the worst nuclear accident in US history. These initiatives come against a backdrop of declining nuclear power in the United States, where the share of electricity generated by nuclear power has fallen in recent years. A recent rise in uranium spot prices since 2022 is also consistent with this renewed interest.

Source: NYMEX Uranium futures spot price, Bloomberg

 

  • SMR and microreactors:

The renewed interest in American nuclear power has boosted start-ups specializing in the design of these reactors. Nuscale Power (+476%), Oklo (+111%) and Nano Nuclear Energy(+427% since its IPO in May) are all enjoying strong investor interest. Finally, Rolls-Royce (+89%) is also present in this segment with its Rolls-Royce SMR subsidiary, as is GE Vernova (+120%) with its BWRX-300 model, for which construction is due to start next year in the UK, with operations scheduled to begin in 2029. Only American companies have publicly traded stocks in this technology. SMR projects in Europe and Asia are still private. In France, EDF has set up a subsidiary called Nuward, specializing in SMR design.

 

  • Services and equipment :

In support of these advanced technologies, services and equipment play a crucial role. They provide the infrastructure, technology and expertise needed to maintain and optimize the operation of nuclear power plants.

  • Curtiss-Wright: Part of our USA portfolio, this American group generates 18% of its sales of 3 billion USD in its Power & Process division, thanks in particular to its nuclear reactor activities.
  • Atkinsrealis: The Canadian company's nuclear segment accounts for 13.9% of revenues, and supports customers throughout the nuclear life cycle with a full range of services: consulting, EPCM services, field services, technology services, spare parts, reactor support, decommissioning and waste management.
  • Mitsubishi Heavy Industries: As one of the world's leading power plant manufacturers, MHI offers solutions in the field of nuclear power generation and a complete range of services, from plant development to manufacturing, operation and maintenance. Buoyed by its defense segment and the gradual return of nuclear power to Japan, the stock has climbed +154% this year.

Other impactful companies:

 

  • Electricity producers:

Electricity producers convert nuclear power, providing an essential source of electricity for national and even regional markets. These companies are often less exposed to nuclear risks, as they are diversified, also operating coal- and gas-fired power plants, as well as solar and wind farms.

  • CGN Power: this Chinese company is undoubtedly one of the few pure players in nuclear power generation and distribution. Listed in Hong Kong, the company is worth 27 billion USD on the stock exchange and relies on CGN Mining, the largest uranium extractor in mainland China.

Some companies :

 

  • Uranium mining, production and trading:

Upstream, uranium mining, production and trading form the material foundation of the industry, ensuring the supply of fuel. However, uranium stands out from other metals because of its potential dual use, both in energy generation and in the manufacture of weapons of mass destruction. Moreover, the presence of uranium is unevenly distributed across the globe. Kazakhstan accounts for 43% of global production, followed by Canada (15%), Namibia (11%) and Australia (9%).

  • National Atomic Company Kazatomprom: Kazatomprom is a Kazakh mining company founded in 1997 and 75% owned by the Kazakh government. The group alone produced 23% of the world's uranium in 2023.
  • Cameco Corporation: the second-largest extractor by volume, with 12% of the world's uranium production, this Canadian mining company also offers nuclear fuel processing and refining services. In terms of valuation, the price-earnings ratio (P/E) based on expected EPS for this year seems very high, at over 80 times. But if we calculate the company's PER using estimates for 2025 and 2026, the picture is totally different. In fact, Cameco shares trade at around 39x estimated EPS for 2025 and 29x for 2026 according to the Bloomberg consensus.

Other companies involved in uranium mining, production and trading: