Nuclear energy has been in the conversation lately partly due to its ability to provide clean energy as the world transitions to zero emissions but also in part due to the rising geopolitical tensions around the world. The conflict between Russia and Ukraine has increased concerns around geographic sovereignty, with countries like Belgium and Japan declaring to prolong the lifetime of their nuclear plants.
Although the use of nuclear weapons in war situations is certainly an issue of concern for the world, the use of nuclear energy for the production of energy is a more refreshing concept. Nuclear power facilities emit almost no greenhouse gases, and in the last five decades, around 70 gigatonnes of carbon dioxide emissions have been avoided by using nuclear power. The amount of carbon dioxide emission per unit of electricity through nuclear power plants is equivalent to one-third compared to solar power. In support of the struggle for a zero-carbon world, more than 200 countries vowed to a phasing down of coal for energy use at the CoP26 climate summit in 2021, and as the transition occurs, nuclear power will continue to get further traction among climate activists.
Scientists have continued to make strides in nuclear technology, and recently, a group of researchers in the United States were able to successfully complete nuclear fusion ignition, which is a process involving the bombarding of light elements to form heavier elements. Nuclear fusion is a reaction reported to generate more energy than the energy used to start the reaction. Although we are still in the early stages of this technology, the potential of nuclear fusion is immense since it can sustainably provide low-carbon energy.
Nuclear fusion startups have been generating interest among investors owing to the potential of the technology. TAE Technologies, a startup working on producing energy through nuclear fusion, raised $250 million earlier in July 2022, with Google and Chevron Corporation being part of the funding round. With the recent breakthrough in nuclear fusion technology, the space is set to attract large investment inflows over the coming years. According to Bloomberg, investments in nuclear fusion tech amounted to $1 billion in 2022, a triple-fold increase in funding from 2020.
Setting up a large-scale nuclear power plant requires significant spending and capital investments which is why the space is dominated by government-owned entities around the world. The issue of large upfront capital investments is addressed through SMRs (small modular reactors). These reactors are smaller in size and power output compared to traditional reactors and can generate power up to 300 MW. Apart from requiring significantly less capital investment, these plants are mobile and can be set up and transported to the site where they are required. These plants have relatively simple designs and are relatively safer in nature due to their smaller size. Although there are some advantages attached with SMRs, recent studies have found out that SMRs actually generate more nuclear waste than conventional nuclear plants. As per the report, SMRs would produce 30 times more radioactive waste per unit of power generated than traditional reactors.
According to International Energy Agency (IEA) data, global energy generation from nuclear plants increased by 3.5% in 2021 compared to 2020, reversing a decline of over 4% brought on by the COVID-19 pandemic. A total of 439 nuclear reactors were in operation as of May 2022 in about 30 different nations. At the time, the United States had the most operational nuclear power reactors, with 92 units. The number of new reactors under construction reached 55 as of May 2022, including 2 in the United States and 18 in China. The total electricity supplied by nuclear power plants throughout 2021 was reported at 2653.1 TWh, accounting for 10% of the total global electricity generation, which is forecasted to increase to 14% by 2050.
Our Methodology
To come up with the 15 biggest nuclear energy and reactor companies in the world, we identified the biggest nuclear energy and reactor companies and ranked these companies in ascending order in order of their market cap. In the case of private companies, we have used the annual revenue of 2021 to estimate each company's market capitalization. For these companies we used a price-to-revenue multiple of 2 as a crude measure of market value. We should also note that most of the US based nuclear energy companies have other operations that generate significant percentage of their revenues, and we made no effort to estimate the value of their nuclear energy operations. Instead, we used the entire market cap of these companies in our rankings.
Market Cap as of January 05, 2022: $9.81 billion
Headquartered in Saskatoon, Canada, Cameco Corporation (NYSE:CCJ) is among the biggest uranium producers in the world, accounting for 17% of total global uranium output. The company operates in the United States, Canada, and Kazakhstan, with its major operations located at the world’s most affluent and highest-grade uranium mine in northern Saskatchewan.
Annual revenue 2021: €4.7 billion
Estimated Market Value: $10 billion
Headquartered in Châtillon, France, Orano SA is an energy company focusing mainly on nuclear and renewable energy generation services. With mining operations in Canada, Kazakhstan, and Niger, Orano is among the world's top uranium producers having competitive production costs and utilizing cutting-edge extraction methods. The company also provides technical services and equipment for the operation of nuclear power plants.
In addition to Orano SA, Dominion Energy, Inc. (NYSE:D), Duke Energy Corporation (NYSE:DUK) and NextEra Energy, Inc. (NYSE:NEE) are included in our list of of 15 biggest nuclear energy and reactor companies in the world.
Annual revenue 2021: ₩9.47 trillion
Estimated Market Value: $14.8 billion
A subsidiary of Korea Electric Power Corporation (NYSE:KEP), Korea Hydro & Nuclear Power Co., Ltd. operates large hydroelectric and nuclear plants in South Korea. The company makes up around 25% of the total generation capacity of South Korea, and it also accounts for 34% of the country’s total power. Korea Hydro & Nuclear Power Co., Ltd. operates 21 nuclear power plants and 27 hydroelectric power plants in Korea.
Annual revenue 2021: ¥62 billion
Estimated Market Value: $18 billion
Headquartered in Beijing, China National Nuclear Corporation is a large state-owned enterprise that operates China’s military and civilian nuclear programs and manages the nuclear technology framework in China. The company oversees the production and distribution of nuclear fuels, nuclear power, and nuclear power products. China National Nuclear Corporation is also involved in military nuclear development, nuclear environmental engineering construction, and other businesses.
Market Cap as of January 05, 2022: $23.02 billion
Founded in 1913, Entergy Corporation (NYSE:ETR) is an integrated energy company that delivers power to almost 3 million customers spread across Louisiana, Mississippi, Arkansas, and Texas. The company’s primary focuses are electric power production and distribution operations. Entergy Corporation (NYSE:ETR) has a generating capacity of 24,000 megawatts and owns interconnected high-voltage transmission lines of an estimated 16,100 circuit miles. The company’s nuclear fleet is headquartered in Jackson, Mississippi, and comprises five nuclear units with a clean nuclear power capacity of 5,000 megawatts.
Market Cap as of January 01, 2022: $23.9 billion
With a market cap of $23.9 billion, FirstEnergy Corp. (NYSE:FE) ranks 9th on our list of 15 biggest nuclear energy and reactor companies in the world. FirstEnergy Corp. (NYSE:FE) is a diversified energy company that operates through several subsidiaries, including FirstEnergy Solutions, FirstEnergy Transmission, and FirstEnergy Generation. The company operates ten regulated distribution utilities spread throughout six Midwestern and Mid-Atlantic states. Energy Harbor Nuclear Corp is a subsidiary of the company, which operates FirstEnergy Corp. (NYSE:FE)’s nuclear-generating facilities. The company supplies 33 terawatt hours of clean, carbon-free energy in the United States, making it the second-largest non-regulated nuclear fleet in the United States.
Here is what ClearBridge Investments had to say about FirstEnergy Corp. (NYSE:FE) in its Q4 2021 investor letter:
On a regional level, the Strategy’s largest exposure is in the U.S. and Canada (44%), consisting of regulated and contracted utilities (31%) and economically sensitive user-pays infrastructure (13%).
Market Cap as of January 05, 2022: $27.27 billion
Headquartered in Baltimore, Maryland, United States, Constellation Energy Corporation is an energy company that offers sustainable solutions and renewable energy to a variety of wholesale customers, including residences, businesses, government agencies, and community aggregators (such as municipalities, cooperatives, etc.). Constellation Energy Corporation boasts the largest fleet of nuclear power plants with 21 nuclear units, and the electricity generated from it amounts to half the nation's carbon-free energy and 20% of the nation's total electricity.
Market Cap as of January 01, 2022: $30.5 billion
Public Service Enterprise Group Incorporated (NYSE:PEG) is a diversified energy company that operates through several subsidiaries, including PSEG Power, PSEG Long Island, and PSEG Energy Holdings. The company serves customers in New Jersey, Pennsylvania, and Maryland. PSEG's generation fleet includes coal, natural gas, oil, solar, and nuclear power plants. PSEG Nuclear is a subsidiary of the company operating three nuclear units in South Jersey. In addition to its plants in South Jersey, PSEG Nuclear also holds a small stake in two nuclear power stations in Pennsylvania.
Market Cap as of January 01, 2022: €32.8 billion
Engie SA (EPA:ENGI) ranks 6th on our list of 15 biggest nuclear energy and reactor companies in the world. Engie SA (EPA:ENGI) is a French multinational electric utility company based in Paris, France. The company is one of the largest utility companies in Europe and serves customers in over 70 countries around the world. The company's generation fleet includes a mix of fossil fuel, nuclear, hydroelectric, and renewable energy sources. Engie SA (EPA:ENGI)’s subsidiary, Electrabel, is among the pioneers of nuclear energy in Belgium. The company operates 4 nuclear reactors in Doel and 3 in Tihange, providing a combined capacity of 6000 MW, which covers almost 50% of total electricity consumption in Belgium.
Annual revenue 2021: ₽1.5 trillion
Estimated Market Value: $41 billion
Headquartered in Moscow, Russia, Rosatom is a state-owned corporation that specializes in nuclear and non-nuclear, and high-tech products. The corporation offers nuclear fuel cycle, fuel and enrichment, uranium mining, and power generation projects and also provides non-nuclear equipment manufacturing, nuclear medicine, and maintenance services. Rosatom holds the first rank in Russia in terms of power generation accounting for 19.66% of total power generated in Russia, and is also responsible for 17% of the total nuclear fuel market globally.
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Disclosure: None. 15 Biggest Nuclear Energy and Reactor Companies in the World is originally published on Insider Monkey.
