The Wall Street Journal has published an article titled China National Nuclear to Raise $2.6 Billion in IPO that describes the plan for a major nuclear power plant owner to go public.
Here is a quote from the article:
China aims to reach 200 gigawatts of nuclear capacity by 2030, up from 14.6 gigawatts last year. But the nation must first overcome a number of hurdles.
“[T]echnology constraints, inadequate infrastructure for uranium-fuel fabrication and disposal, public opposition to inland nuclear plants, and shortages of qualified personnel all mean a more realistic nuclear capacity in 2030 will be 175 gigawatts,” according to energy consultancy Wood Mackenzie.
Wood Mackenzie’s cautionary note is almost amusing; 175 GW of nuclear capacity is still a very large number that is almost twice as much as the total capacity currently operating in the United States, which is the world’s largest operator of nuclear power plants.
It has been a long time since a nuclear energy-focused company generated a lot of investor excitement on Wall Street. Perhaps the upcoming initial public offering (IPO) of China Nuclear will demonstrate that investors around the world are interested in nuclear energy, but no so interested in nuclear energy companies that are operating in the United States.
China National Nuclear is not constrained by the uncertainties associated with our regulatory environment or the need to compete against temporarily low natural gas prices. Instead, it is operating in a country where many of the political leaders are trained as engineers and where everyone, including the elites that make the decisions, are breathing the same dirty air caused by burning massive quantities of coal in insufficiently controlled furnaces.
There are many good reasons to invest in clean energy production; I am looking forward to the opportunity to vote for continued nuclear energy development by buying a modest quantity of this IPO – as long as it is available to US investors.
The WSJ article ended with the following quote indicating that China National Nuclear may not be the only coming opportunity to invest in Chinese nuclear energy development.
China General Nuclear Power Corp, a unit of China General Nuclear Power Group, is also seeking a listing. It hopes to raise about US$2 billion from a Hong Kong IPO in the third quarter of this year, people with direct knowledge of the deal said in March.
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