Posted on September 26, 2024 by djysrv
- 14 Major Banks Light Off a Big Bang in the Big Apple in a Call to Action to Triple Nuclear Energy by 2050
- Nuclear Scaling Initiative Launches $10 Million Fund
- Nuclear Resurgence’ Documentary Film Explores Resurgence of Global Nuclear Energy
14 Major Banks Light Off a Big Bang in the Big Apple in a Call to Action to Triple Nuclear Energy by 2050
– On the sidelines of Climate Week in New York City, major banks, government representatives and industry executives recognized the role that nuclear energy can play in the global energy transition.
– Nuclear energy was included in the historic outcome under the Paris Agreement.
– Improving access to financing can help unlock nuclear energy’s potential for significant decarbonization for zero-emission power and heat.
On 9/23/24 nations endorsing the Declaration to Triple Nuclear Energy launched at COP28 in 2023 were joined by 14 financial institutions who expressed support for the call to action to triple global nuclear energy capacity by 2050.
The group of financial institutions in the convening include: Abu Dhabi Commercial Bank, Ares Management, Bank of America, Barclays, BNP Paribas, Brookfield, Citi, Credit Agricole CIB, Goldman Sachs, Guggenheim Securities LLC, Morgan Stanley, Rothschild & Co., Segra Capital Management, and Societe Generale.
The financial institutions recognized that global civil nuclear energy projects have an important role to play in the transition to a low-carbon economy. They further expressed support for long-term objectives of growing nuclear power generation and expanding the broader nuclear industry to accelerate the generation of clean electrons to support the energy transition.
The banks stand to reap very significant profits from fees related to assembling the financing for fleets of multi-billion dollar nuclear power plants.
With opening remarks from Senior Advisor to the President for International Climate Policy John Podesta, the event, which took place in the Rockefeller Center in New York City, brought together heads of state, ministers and leaders from the nuclear and financial industries, along with heavy and power intensive industry executives, to recognize the role of private sector finance in supporting global efforts to decarbonize power grids.
“Our collective mission is clear: nuclear energy is clean energy, and if we are to ensure a livable planet, build secure, sustainable supply chains for clean energy and bolster prosperity around the world, we need to make sure that nuclear energy does its part,” said John Podesta, Senior Advisor to the President for International Climate Policy. “I know we can make it happen—as long as we work together.”
Capital markets and financing can play a critical role in developing and growing nuclear energy projects worldwide. Financial institutions can provide experience, global presence, services and solutions to support the industry.
“The only riddle left to solve is the financial side, the financial costs,” said Dr. Robert Golob, Prime Minister of Slovenia. “Financial markets need to adapt and develop new financial instruments in order for nuclear energy to become competitive with other CO2-free energy sources.”
“It is time to take concrete action towards necessary expansion of nuclear energy, said Ebba Busch,” Minister for Energy, Business and Industry and Deputy Prime Minister of Sweden. “The Swedish government is exploring a proposed financing model which includes government-backed loans, Contracts-for-Difference (CfDs) and risk-sharing mechanisms. The aim of the proposal is to significantly improve the conditions for nuclear newbuild in Sweden and with it, a more sustainable future.”
“New nuclear power is both clean and safe, and more importantly proven, with a number of nations now operating highly advanced and ‘commercially viable’ third- and fourth-generation fission technologies,” said James Schaefer, Senior Managing Director of Guggenheim Securities.
“It is essential that we accelerate the progression of planned projects into plants on the ground given the huge demand coming down the line for data centers and AI technologies. This will require nuclear companies, plant owners, data center and technology companies, together with banks and financial institutions to collaborate closely.”
In the declaration, these nations recognized the importance of mobilizing finance and investment for nuclear power to help keep 1.5°C within reach, marking a significant shift in global climate policy and catalyzing a dialogue on the role nuclear energy can play in reducing global emissions.
“Including nuclear energy as a zero-carbon technology alongside renewables is essential to meeting the world’s carbon reduction goals and ensuring that heavy industrial manufacturers like Nucor have a reliable and clean electricity supply to continue growing, prospering, and providing high-paying jobs,” said Benjamin M. Pickett, Vice President & General Manager of Public Affairs & Government Relations, Nucor Corporation.
“Since COP 28 in Dubai last year, we have witnessed a step change in momentum across the nuclear sector, buoyed by a significant increase in demand for clean electrons for data centers and AI, with global power demand for this sector alone set to double by 2026,” said Mohamed Al Hammadi, Managing Director and Chief Executive Officer of the Emirates Nuclear Energy Corporation.
“With the support of 14 global banks and financial institutions witnessed this morning on the sidelines of New York Climate Week, it is clear that not only is nuclear energy viewed as a crucial enabler to decarbonize the power sector, but it also fits the profile for sustainable and transition financing, especially as we now see multiple nuclear plants being delivered efficiently, providing confidence to the market and a clear market signal that nuclear is a proven, bankable route to energy security and net zero in parallel.”
The 25 nations endorsing the Declaration to Triple Nuclear Energy include Armenia, Bulgaria, Canada, Croatia, Czech Republic, Finland, France, Ghana, Hungary, Jamaica, Japan, Republic of Korea, Moldova, Mongolia, Morocco, Netherlands, Poland, Romania, Slovakia, Slovenia, Sweden, Ukraine, United Arab Emirates, United Kingdom, and the United States of America.
What’s Next for the Big Banks’ Big Bang?
In a post on Linkedin, global nuclear expert Elina Teplinsky, Leading Member of International Nuclear Practice, at Pillsbury Winthrop Shaw Pittman LLP, called out the following priorities as discussed by a panel of experts at Climate week.
- We need to develop the right debt and equity structures for nuclear to lower the cost of capital
- Government backing has to be part of the equation but can take many forms – such as CfD and RAB (domestic) + ECA support (exports). Nuclear scaling needs to be government-enabled, but corporation led
- Long-term offtake contracts are essential
- Completion risk for nuclear is much higher than other renewables. Need to manage and allocate the downside risk
- Permitting reform is a huge hurdle that needs to be overcome
- Continued emphasis on an allocated risk model with government taking more risk on the FOAK. For SMRs especially need to demonstrate this new asset class.
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Nuclear Scaling Initiative Launches $10 Million Fund
A major new gift from Joe Gebbia and Isabelle Boemeke to Clean Air Task Force (CATF), the EFI Foundation (EFIF), and the Nuclear Threat Initiative (NTI) will establish and empower the Nuclear Scaling Initiative (NSI). It is a collaborative effort to catalyze and build a new nuclear energy ecosystem to scale to 50 or more gigawatts of clean, safe, and secure nuclear power per year by the 2030s, a tenfold increase of the current deployment rate.
The gift awards $5 million to the NSI partnership to produce and socialize first-of-their-kind analyses and intellectual products among relevant governments, stakeholders, and opinion leaders aimed at transforming the nuclear energy ecosystem. It also establishes a second $5 million matching challenge to encourage additional philanthropic support from individual and institutional donors.
The Nuclear Scaling Initiative will:
– Facilitate the formation of a large, organized, pooled demand “orderbook” for nuclear energy plants, with an initial focus on the U.S. and Central and Eastern Europe
– Advocate for the harmonization of regulatory and other policies across international borders to facilitate a truly global industry
– Promote financial risk sharing among private parties and governments to reduce first-mover disadvantages
Help to develop a roadmap to expand and sustain global workforces to meet increased demand
– Encourage the embedding of non-proliferation and security as essential criteria for a nuclear energy scale-up
In 2023, CATF, EFIF, and NTI teamed up to develop and release the Global Playbook for Nuclear Energy Development in Embarking Countries, outlining pathways for the responsible, sustainable, and effective development of new nuclear energy projects at 10x of the current pace. The report has been influential in driving progress around nuclear energy and has helped lay the foundation for the Nuclear Scaling Initiative’s work.
“Nuclear electricity is one of the safest forms of energy on the planet. Funding NSI kickstarts the first major philanthropic effort to develop more of this consistent carbon-free energy,” stated Joe Gebbia.
“Nuclear electricity is essential to address climate change, end energy inequality, and boost energy security,” said Isabelle Boemeke.
“It’s also been an overlooked technology and in need of catalytic philanthropic support to realize its full potential. We’re proud to do our part in supporting these trusted partners in their work to scale nuclear electricity around the world, and we challenge our peers in the philanthropic community to join us in this effort.”
The gift and matching challenge come as nuclear energy gains significant momentum as a key component of the clean energy transition. That momentum reached an inflection point in 2023, when more than 25 countries launched the Declaration to Triple Nuclear Energy at COP28. This announcement secured nuclear energy’s important role in a low-carbon future and opened a discussion around how it can be rapidly, effectively, and responsibly scaled.
“Nuclear energy has moved from a marginal role in the energy and climate conversation to an increasingly central one,” said Armond Cohen, Executive Director at Clean Air Task Force.
“But there is not yet any coherent or comprehensive roadmap to get nuclear energy to the scale and pace needed to address climate change. The Nuclear Scaling Initiative will fill that gap through new research, multi-sector coalition- and capacity-building, policy advocacy, and commercial facilitation. We’re humbled by the generous catalytic support of Joe Gebbia and Isabelle Boemeke and look forward to working with them and other philanthropic partners on growing the network of do-ers and funders for this important mission.”
“This very generous gift from Joe and Isabelle will take us closer to a decarbonized future where communities worldwide are powered by clean, affordable, secure and reliable electricity,” said Ernest J. Moniz, President and CEO of the EFI Foundation and Co-Chair and CEO of the Nuclear Threat Initiative.
“The team we have built across NTI, EFIF, and CATF combines the expertise, experience, global perspective, and rigorous approach necessary to scale nuclear energy at a groundbreaking pace. In addition, our strong commitment to nuclear security and nonproliferation is embedded in NSI’s approach.”
About the Funders
Joe Gebbia is the co-founder of Airbnb and Samara. Airbnb’s groundbreaking service began in his San Francisco living room in 2008. Today, Airbnb has spread to nearly 7 million listings in over 220 countries, changing how people trust each other. His latest venture, Samara, comparably cemented in economic empowerment, housing resources, and design, redefines the standards of factory-made homes.
Isabelle Boemeke is the Founder and Executive Director of advocacy organization Save Clean Energy, which cultivates grassroots movements that protect existing clean energy resources. She is also the creator of the online persona, Isodope, where she uses her platform to spread awareness about the potential of nuclear energy to help solve the global climate and resource crises.
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Nuclear Resurgence’ Documentary Film Explores Resurgence of Global Nuclear Energy
Full On Communications announces the release of its documentary, “Nuclear Resurgence,” which examines the worldwide comeback of nuclear energy and its critical role in shaping future energy landscapes. This timely exploration comes as countries globally reassess their energy policies in light of climate change concerns and energy security challenges.
The 15 minute long documentary features insights from leading experts, including Michael Liebreich, founder of Bloomberg New Energy Finance; Mike Goff, Acting Assistant Secretary at the DOE Office of Nuclear Energy; and Kirsty Gogan, CEO of Terra Praxis and Lucid Catalyst; and others. These thought leaders provide firsthand perspectives on the factors driving nuclear energy’s comeback and its potential to meet evolving global energy needs.
“We are excited to introduce ‘Nuclear Resurgence,’ which examines the forces behind nuclear energy’s dramatic revival worldwide,” said Jarret Adams, Founder and CEO of Full On Communications.
“This documentary offers interviews with leading experts who have been instrumental in nuclear energy’s re-emergence.”
The release of “Nuclear Resurgence” aligns with the increasing recognition of nuclear energy’s importance in achieving global climate goals and ensuring energy security. It showcases progress that the nuclear energy industry is making in completing new reactors, development of new technologies, and new ways to talk about nuclear.
“Nuclear Resurgence” is now available for streaming on YouTube at: https://www.youtube.com/watch?v=hsVuIbpM_ec
Cast:
Meredith Angwin, Author, Shorting the Grid
Sama Bilbao y Leon, World Nuclear Association
Tim Echols, Georgia Public Service Commission
Mike Goff, DOE Office of Nuclear Energy
Kirsty Gogan, Terra Praxis & LucidCatalyst
Heather Hoff, Mothers for Nuclear
Maria Korsnick, Nuclear Energy Institute
Julie Kozeracki, DOE Loan Programs Office
Michael Liebreich, Liebreich Associates
Ted Nordhaus, Breakthrough Institute
Paris Ortiz-Wines, Stand Up for Nuclear
Myrto Tripathi, Voices of Nuclear
Lindsey Walter, Third Way
Kristin Zaitz, Mothers for Nuclear
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