This is the first article in Womble Bond Dickinson’s Energy & Natural Resources thought leadership series titled “Going Nuclear: A Sustainable Solution to Rising Energy Demand.” The series will explore the changing landscape of commercial nuclear power, both domestically and internationally, and provide stakeholders with the strategic insights they need to navigate this expanding field.

Nuclear energy is experiencing a global resurgence due to a confluence of factors. Over the last ten years or so, mounting environmental awareness has motivated a transition towards cleaner energy alternatives. More recently, the digital transformation – including the proliferation of AI, electrification of vehicles and industries, and overall demographic and economic growth are fueling unprecedented electricity demand worldwide. We are seeing an “energy expansion” across all available resources, including fossil fuels. Nuclear power, with its low carbon emissions and ability to provide baseload power, is increasingly viewed as a viable solution to meet growing energy needs while supporting grid reliability and complementing other clean energy resources.

The nuclear power industry has evolved significantly over nearly 70 years, but the 21st century brings new challenges and opportunities. This series will explore the changing landscape of commercial nuclear power, both domestically and internationally. We'll examine emerging reactor and fuel designs, decommissioning processes, waste disposal, and various legal considerations including regulatory compliance, intellectual property, commercial agreements, financing, import/export controls, and risk management. Our aim is to provide stakeholders with a comprehensive understanding of the new nuclear reality, emphasizing the importance of strategic planning in navigating this expanding field.

From Atoms to Ambitions

The first grid-connected nuclear power plant was Russia's Obninsk in 1954, primarily an R&D facility. The UK's Calder Hall 1 followed, producing both electricity and plutonium for weapons. In 1957, the Shippingport Atomic Power Station in Pittsburgh became the first truly commercial nuclear power plant, marking the beginning of the nuclear power era. The industry grew rapidly, with global reactor numbers peaking at 440 in 2005. Yet despite initial optimistic predictions of "electricity too cheap to meter," the industry has faced challenges. However, nuclear energy has never lost its relevance in global energy production.

Despite initial optimistic predictions of "electricity too cheap to meter," the industry has faced challenges. However, nuclear energy has never lost its relevance in global energy production.

In the U.S., the reactor count reached its maximum of 112 in 1990. Since then, the U.S. nuclear industry has declined due to regulatory hurdles, high costs, competition, and public opposition which has been exacerbated by incidents like Three Mile Island, Chernobyl, and Fukushima. New reactors have been commissioned, including Watts Bar Unit 2 and Plant Vogtle Units 3 and 4, using advanced designs, but projects have been limited and some have stalled due to escalating construction costs. Globally, however, nuclear power has seen growth, particularly in Asia and France. China added 60% of its 60 GW nuclear capacity in the last decade. France derives about 70% of its energy from nuclear resources and, in 2022, approved the construction of six new reactors. (It is worth noting that the original timeline for construction of these reactors to begin in 2027 is in doubt due to financing and supply chain issues, which is illustrative of key challenges facing the industry today.)

Currently, 440 reactors generate 400 GW globally, providing 9% of world electricity. The U.S. has 94 operating reactors, supplying 18% of its electricity. While Germany has phased out nuclear power, over a dozen countries still derive at least 25% of their electricity from nuclear sources and nuclear power production has increased by 57 billion kWh from 2022 to 2023. India, China, and the UAE have recently added capacity, with 63 new reactors under construction worldwide as of 2024. Clearly there is a growing global interest in nuclear power.

Necessity is the Mother of Innovation

Today, technological advances are addressing longstanding concerns, creating opportunities for nuclear power to be a key solution to rapidly increasing power needs. Generation III+ and IV reactors incorporate passive safety features and improvements based on decades of operational experience. Additionally, small modular reactors (SMRs) and microreactors are being developed by numerous companies globally. These innovative technologies offer smaller footprints, flexible siting options, cost-effectiveness, faster construction, and scalability to meet various power supply needs. They have potential applications in industrial site transitions, powering data centers, and serving remote facilities and communities. These nuclear advancements coincide with evolving public policies, financial incentives, energy security concerns, global tensions affecting traditional energy supplies, a desire for energy independence, and economic growth. Consequently, nuclear power is strategically positioned to address these multifaceted challenges and requirements in the global energy landscape.

Technological advances are addressing longstanding concerns, creating opportunities for nuclear power to be a key solution to rapidly increasing power needs.

Fission, Friction, and Future Frontiers

The future of commercial nuclear power presents a mix of challenges and opportunities. While public opposition, unresolved waste storage issues, and regulatory hurdles persist, the industry is poised for growth through SMRs and advanced reactors. In the United States, the decline in domestic nuclear capabilities tied with a recognition that other renewable resources cannot keep up with energy demands and corporate sustainability commitments have spurred efforts to rebuild the nuclear supply chain and fuel cycle, from uranium mining to fuel fabrication. Simultaneously geopolitical tensions have necessitated a shift from Russian-sourced fuel, creating new domestic opportunities. The US Nuclear Regulatory Commission is preparing for new reactor designs, though initial licensing processes may face a learning curve. Internationally, export opportunities are emerging in developing nuclear markets, supported by entities like the Export-Import Bank. These developments, along with inbound foreign investment, signal a potential nuclear renaissance, albeit with complex legal, regulatory, and commercial considerations. The industry's ability to navigate these challenges while capitalizing on opportunities will shape its future trajectory.