By 2050, the world's energy demands are set to triple (McKinsey & Co.). Paired with the growing emissions of various countries such as China – which emits thirty per cent of all global emissions – this plunges the world into the imminent threat of a climate catastrophe. However, nuclear fusion, especially when privately owned, has the potential to combat this. This article will attempt to demystify how and why private nuclear power can change the landscape of the energy sector.
Fusion power is the process by which particles are fused together. This is achieved via two main processes: thermonuclear fusion and inertial confinement fusion. The thermonuclear fusion process makes use of heating methods to bring the reactor up to an operational temperature of one hundred and fifty million degrees Celsius. Conversely, inertial confinement fusion utilises an array of lasers to produce the necessary environments for particles to coalesce. With the current rates of progression, thermonuclear fusion currently stands as the favourite in the race to achieve a net energy gain reaction; the ITER (International Thermonuclear Experimental Reactor) project currently aims to provide commercially available fusion by 2034.
However, the funding and management structure of ITER has caused a number of problems to arise. For example, in 2010 before the project even commenced construction, there were tensions between the participating countries caused by the huge gap in funding. This gap was due to trebling costs and project doubt slowly increasing, thus leading to delays in the construction process and wasting both time and money for investors. Controversy over government decisions and the funders of state projects can also hinder the development of such schemes, this can be seen through the British Hinkley Point C Nuclear Power Plant. Controversy has surrounded this project since its inception due to public and professional concerns about the UK energy infrastructure is foreign owned. These concerns arise from the fact that the French energy company EDF partly owns the UK infrastructure for energy and China’s CGN Group helped fund the £18 billion Hinkley Point C investment. As a result, there has been speculation that due to this lucrative deal, bill payers in the UK will have to pay eye-watering high energy prices when Hinkley becomes operational. All these concerns and setbacks have caused delays and adjustments to be carried out in regard to these projects, ultimately wasting time and money due to poorly managed governments.
On the contrary, I believe if a privatised sector were to be adopted, it could surpass many of the pitfalls seen in government-led schemes. Take the Nuclear Fusion Demonstration Plant (DEMO) project as an example: due to the various governments involved and the complexity of the agreements, the timeline for the reactor had to be pushed back yet again to 2054 from 2050. As said by EUROfusion’s programme manager (here), Tony Donné, “2054 is optimistic. It is doable, but we need to align political decision-makers and get industry involved.” This is a prime example of how government-led programmes are inherently flawed due to the problems they bring due to indecision. Moreover, if you look at the recent news on the first successful private sector deal for the UK Infrastructure Bank (UKIB) with NextEnergy Capital (one of the global leaders in the solar infrastructure sector), one can see the benefits of going private. This means no governmental interference, no setbacks due to disagreements within niche areas, no delays for financing etc. Therefore, the money invested by the UKIB into NextEnergy Capital can be utilised instantly in their solar fund. If one also looks at the recent news of the $1 trillion Saudi Arabian Line project, this is being paid for by a private investment fund. The timeline from announced plans to construction initiation was twenty-two months – this shows the power of privately funded projects. If the amount of money used for this project was directed towards a privately funded fusion sector, there would be the possibility to create forty-seven fusion reactors, each costing approximately $20 billion with an initial $50 billion experimental reactor. The potential revenue from this would be within the multi-billion range. This is especially pertinent as, with the looming climate crisis and accelerating energy demands of the world, solutions must be drawn fast.
Another benefit of the fusion energy production sector going private is the potential market impact it could bring. Through investing in fusion, schemes can be offered where governments can offset their carbon emissions as these investments will be classed as ‘green’ investments. With the 2050 upcoming net-zero emissions target for the UK approaching fast, this could be a particularly attractive option to uphold this pledge. The privatisation of the fusion sector within the UK could also lead to a possible divergence away from an international gas market where supply and demand are set by global forces. This could be particularly attractive due to the current situation we find ourselves in due to the control that Russia occupies over the energy market.
To conclude, a privatised nuclear fusion sector is needed; it is the only way we will successfully meet the growing energy demands of the world on time and without destroying the world we live in. The issue with state-funded schemes is that they only go so far due to the problems they bring through international politics within decision-making and funding. More private investment is needed by countries via investment funds (Saudi Arabia) and private sector deals (UKIB and NextEnergy Capital), as this is the only way projects will be realised on time without any hindrances.
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