(24 September 2024 – United States) Global banks have jointly heralded the crucial role nuclear energy must play in hastening the global energy transition.
Improving access to financing can help unlock nuclear energy’s potential for significant decarbonization for zero-emission power and heat, with nuclear energy included in the historic outcome of the first global stocktake under the Paris Agreement.
The group of financial institutions seeking to unlock financing for new nuclear projects totalling US$14 trillion in combined assets include Abu Dhabi Commercial Bank, Ares Management, BofA, Barclays, BNP Paribas, Brookfield, Citi, Credit Agricole CIB, Goldman Sachs, Guggenheim Securities LLC, Morgan Stanley, Rothschild, Segra Capital Management and Société Générale.
The announcement follows Microsoft’s newly revealed plan to revive the Three Mile Island reactor to power its growing armada of data centres. The company has agreed to use as much power as possible from the plant over the next 20 years.
Demand for uranium used in powering nuclear energy continues to expand rapidly in the global transition to renewable and clean energies, with multiple new exploration licencing approvals recently granted in South Australia, the world’s largest uranium reserve.
“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” stated Guggenheim Securities Senior Managing Director, James Schaefer.
“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 centres and AI technologies. This will require nuclear companies, plant owners, data centre and technology companies, together with banks and financial institutions to collaborate closely.”