Investing in Nuclear SMRs - get in now before it is too late!

Introduction

The world needs green electricity - especially electricity that does not depend on the weather (i.e. neither wind nor solar). Unlike the USA, who are drilling for oil and gas with no regard for global warming, the UK have adopted a Net Zero policy.

Electric trains and electric cars are being forced on the UK population - a nation that pays one of the highest prices in the world for electricity - because now, being a country rich in coal, we depend on imported gas to keep our lights on during calm and dull days (over 200 days a year). The UK also is surrounded by sea and covered in natural harbours, many of them have some of the highest tidal ranges in the world (hence the phrase 'ship shape and Bristol fashion' because when the Bristol tide went out, all the ships would be grounded and tip over) - yet we fail to take advantage of these natural resources despite the fact that coal power stations can be made relatively cheaply and cleanly now and we clearly lack the will take advantage of the Severn Estuaries enormous and dependable rush of energy that could be created from a tidal lagoon every 12 hours of every day which could provide 7% of our energy for over 100 years with true zero carbon cost.

11m tidal range in Bristol estuary!

AI and data centers

So we now have the AI revolution and this requires a great deal of electricity. AI is now required by a great many technical industries including Healthcare/Pharma, Finance, Manufacturing, Retail, Marketing, Education, Logistics and Media to improve efficiency, automate tasks, gain insights and personalize customer experiences. Specific applications range from drug discovery and medical diagnosis in healthcare, to fraud detection and risk assessment in finance, and predictive maintenance in manufacturing.

The need for continuous electrical power is world-wide. The UK\EU is an obvious first customer as we both heavily rely on gas. SMRs are also attractive to countries that have depleted uranium currently in storage as it provides a way of offloading their storage/disposal problem onto the SMR companies!

Due to the very high demand for power, AI data centres are starting to look at Small Scale Nuclear Reactors (SMRs) for their power. These require water for cooling and steam generation for turbines. Some SMRs produce hot water as a byproduct which can be used for heated swimming pools or to supply nearby chemical plants or for heating greenhouses.

SMRs that are designed for desalination purposes can use large volumes of seawater as a feedstock to be desalinated into freshwater. SMRs are not all the same, with some using light water as a coolant, some using non-water-based coolants like molten salt or liquid metal, and others using air or district heating for cooling. 

Coolants

Light Water-Cooled SMRs: The majority of SMR designs are light water reactors, and some of these use freshwater internally as a coolant. 

Advanced Modular Reactors (AMRs): These reactors use different coolants, including liquid metal, molten salt, or gases, depending on their technology. 

Air-Cooled or Other Systems: Some advanced SMRs may use air-cooled technology or other processes to reduce water needs. 

The UK's energy problem

• The UK is switching over to electrified rail networks, electric battery road transportation, electric household heating and electrified household cooking. Natural gas is considered damaging to the environment and expensive - gas reserves may be depleted within 50 years.
• The UK will increase it's demand for electricity massively within the next 10 years.
• The UK does not have enough 24x7x365 green electricity.
• The UK cannot will not use 24x7x365 fuels such as oil or coal - so this leaves natural gas (not very green) or nuclear.
• Large Nuclear power stations have not been built in the UK for over 30 years and the next one, Sizewell C, is due by approx. 2040, by which time all cars will be BEVs.
• The UK's electricity demand is projected to rise significantly, from roughly 325 TWh in 2025 to potentially over 600-1500 TWh by 2050. Offshore wind combined with battery storage for short-term periods could easily provide this - but not for weeks or months at a time during prolonged periods without sun or wind.
• We need to generate at least double the amount of electricity within 25 years and that does not account for the massive demand of any AI data centers we need to build.
• The production of energy via fusion seems to be always 10 years away. Even if feasible in 20-30 years, it will be expensive to build and maintain such plants. The UK has plans to finish a 100MW tokamak by the 2040's supplying 1/1000th of our energy requirements.
• Any company that can generate and sell clean electricity NOW is going to get rich!

There are a great many privately funded multi-billion dollar energy companies who can see the rising demand for electricity. SMRs provide a constant source of electricity and can be built within a few years. Because each one will be identical and only the first few need to pass all the strict design regulations, the rest can be mass produced and all the same, hence many of the delays involving the extremely tight safety and design regulations can be avoided once the design has been proven.

Europe has many land-locked countries which cannot use offshore wind farms, SMRs would be the perfect answer.

In short...

SMRs appear to be a very lucrative cash cow for the adventurous private investor, providing a reliable income for at least 60 years once built. Government contracts to supply electricity for many years will have been pre-signed and demand for energy will outstrip supply for at least 50 years. Building SMRs for data centres is only the beginning!

Recent UK plans

From www.gov.uk website:

• Building on existing UK and US collaboration including between Rolls-Royce and the US-based manufacturing company BWXT, the government has increased access to the market for both UK and US companies with new major commercial deals to be announced this week: 
• X-Energy (private company) and Centrica (UK energy infrastructure) - plans to build up to 12 advanced modular reactors in Hartlepool, with a follow-on UK wide programme targeting a fleet of 6GW of nuclear power stations. According to the companies, the Hartlepool project would generate enough power for up to 1.5 million homes and create up to 2,500 good jobs. The companies estimate the overall programme could deliver at least £40 billion in economic value, with £12 billion in value focussed for the North East of England.
• Holtec, EDF and Tritax - plans to develop advanced data centres powered by small modular SMR-300 reactors at the former Cottam coal-fired power station in Nottinghamshire. Holtec estimate the project value to be around £11 billion, and it is expected to create thousands of high-skilled construction jobs, as well as long-term roles in operations for the local community.
• Last Energy and DP World – plans to establish one of the world’s first micro modular nuclear power plants, backed by £80 million in private investment, to unlock a clean power supply for the expansion of DP World’s London Gateway port and business park.
• Urenco and Radiant – signs a deal, worth around £4 million, to supply advanced HALEU fuel to the US market. Urenco is building an Advanced Fuels Facility in the UK co-funded with the UK Government and is exploring building a similar facility in the US.
• TerraPower and KBR – plans to conduct studies and evaluate sites in the UK for the deployment of the Natrium advanced reactor technology, with each Natrium reactor supporting around 1,600 construction jobs and 250 permanent jobs and delivering safe, reliable and flexible nuclear power paired with gigawatt-scale energy storage.
• Britain has selected Rolls-Royce SMR to build the country's first small modular nuclear reactors (SMR) as part of its plan to speed up the decarbonisation of the power network from the mid-2030s. The government in June 2025 pledged 2.5 billion pounds ($3.4 billion) for the SMR programme over the next four years, aiming to kickstart one of Europe's first small-scale nuclear industries. SMRs are typically the size of two football pitches, with parts that can be built in a factory, making them quicker and cheaper than traditional plants, which take more than a decade to construct and face planning delays in the UK.

Types of SMRs

Most SMRs use Uranium.

Light Water Reactors (LWRs)

Coolant: Ordinary water. 

Features: These are the most common type, operating similarly to large conventional reactors. Designs include pressurized water reactors (PWRs). 

Benefits: They are well-understood, reliable, and can adapt existing regulations and standards. 

High-Temperature Gas-Cooled Reactors (HTGRs)

Coolant: Gases like helium. 

Features: They operate at much higher temperatures, offering greater thermal efficiency. 

Benefits: High-temperature heat can be used to drive gas turbines directly or for industrial processes like hydrogen production. 

Liquid Metal-Cooled Reactors (LMCRs)

Coolant: Liquid metals such as sodium or lead. 

Features: These designs have excellent thermal conductivity for efficient heat transfer and can operate at high temperatures and lower pressures. 

Benefits: They offer enhanced safety and efficiency and can function as breeder reactors. 

Molten Salt Reactors (MSRs)

Coolant: A mixture of molten salts that carry the fuel. 

Features: They can operate at atmospheric pressure, reducing the risk of explosive failures, and can utilize various fuel types, including thorium. 

Benefits: They achieve high thermal efficiency and are ideal for electricity generation and other industrial uses at high temperatures.

EU interest

The EU is just beginning to wake up and form a strategic action plan:

European Industrial Alliance on SMRs: This alliance brings together industry stakeholders to accelerate SMR development and deployment in Europe by creating a strong supply chain and developing necessary skills. 

Strategic Action Plan: Adopted in September 2025, this five-year plan details actions to overcome challenges in SMR deployment, focusing on the supply chain, financing, R&D, safety, and public engagement. 

Support for Deployment: The EU aims for the first SMRs to be deployed in the EU by the early 2030s to enhance Europe's energy independence and contribute to a carbon-neutral future. 

Broad Applications: SMRs are seen as a critical technology not only for electricity generation but also for supplying low-carbon heat to industry and producing medical radioisotopes. 

As well as Rolls-Royce, SMR companies such as EDF's Nuward, Last Energy, Calogen and Steady Energy are being evaluated. Again, most of these are private unlisted companies.

Regulatory Approval - As is typical of the EU, there are many advisory groups being set up with literally thousands of companies and interested groups involved - safety, ecological, energy, scientists, consultants, etc. 

No SMRs have yet been built in the EU, but Rolls-Royce are a strong candidate as well as EDFs Nuward.

Investing in Nuclear energy

To invest in nuclear energy, we could look at Uranium miners/suppliers as well as companies which finance them (e.g. Blackrock, Baille-Gifford, etc.), and companies which design and build nuclear power plants and components for them. As previously stated, many of these are university offshoots and are privately funded companies.

I have been investing in RR for a year or so and have already taken some nice profits, but I recently re-invested in RR and I am up 10% so far.

I also have the following four 'nuclear' holdings in my T212 portfolio:

RR (+10%) - NUCG ETF (+20% bought July 2025) - very recently I bought Vistra (+6%), Oklo (+19%)

Here are some stocks/ETFs to consider:

Their performance for the last year is shown in parentheses:

Rolls-Royce (126%)

RR - 1 Year

Vistra (150%) - US energy retailer inc. nuclear

Oklo (1,400%)

Van Eck Uranium and Nuclear ETF NUCG (91%)

Other possible candidates (I do not hold these yet):

• NuScale Power SMR (287%)
• Siemens Energy ENR (229%) - partnered with RR for SMRs
• Uranium Energy UEC (148%)
• Cameco CCJ (113%)
• Global X Uranium ETF URNG (84%)
• BWX Technologies BWXT (77%)
• NexGen Energy NXE (49%)

Trading 212 Nuclear Pie

There is a Trading 212 Pie which includes many other companies.

T212 Pie - 'Nuclear Sector'

BHP, Cameco, Denison Mines, NexGen Energy and Uranium Energy are the biggest Uranium companies.

Uranium ETFs

March 2025 to Sept. 2025 - 80% gain!

Summary

Investing in this industry seems highly speculative and involves large amounts of private investor funds with high stakes. There is however a huge global market with a customer base that has very deep pockets (our governments).

The problem is which horse to back! Also, many companies are private companies with private investors who have deep pockets and are willing to take a risk - the successful companies will be gobbled up by large listed companies.

Decisions are subject to government policies and political whim. Would a French government choose RR over EDF, for instance?

It appears the bandwagon has already started rolling but it may not be too late to jump on.

Perhaps the safest bet would be to choose an ETF holding a broad range of companies and perhaps a Uranium ETF (most will need to buy uranium) rather than bet on single companies like RR, Oklo or Vistra, etc. - but it is exciting!

Use THIS LINK to get your free shares once you have put some money into your account. I will also get some free shares too :-)

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This is not investment advice - please do your own research. These stocks can be risky and volatile. Only invest what you can afford to lose.