10 Emerging Technology Investments for 2023 – #10: Nuclear Fission To-Go

This company is at the forefront of a new generation of nuclear energy.

Andrew Willis 11 April, 2023 | 4:25AM
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Andrew Willis: In the recent “10 for 2023” report from Sustainalytics, Martin Vezér and Poulomi Sengupta combed through Pitchbook and Sustainalytics to find you companies developing portable nuclear power plants.

Imagine a couple of Rolls-Royce (RYCEY) assembly lines. On one, workers are meticulously affixing a rear-view mirror for an ultra-luxury vehicle. On the other, they’re putting the finishing touches on a nuclear reactor… Both products roll down the assembly line as self-contained units - albeit with very different power outputs.

That’s the goal at least, to take advantage of nuclear fission, and design something smaller, with more passive safety systems and less supervision required than traditional power plants. Rolls Royce stands out as a contender with its technical know-how and product governance practices, which Sustainalytics rates as low risk, although there could be improvements on issues such as risk assessments and employee training.

For investors, Rolls Royce may not be a nuclear power stock just yet, but sector director Denise Molina says that its more impactful aviation business is benefitting from a rebound in air travel. And for miniature nuclear fission fans, by 2035, there may be tens of thousands of SMRs according to the UK Nuclear Laboratory, which will be great for the planet – as long as they don’t put one in a Rolls-Royce.

For Morningstar and the 10 for 2023 from Sustainalytics, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Rolls-Royce Holdings PLC4.89 USD-1.51
Rolls-Royce Holdings PLC ADR4.84 USD-2.22Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar Canada. He previously produced content for Fidelity Investments and finance industry events for Euromoney Institutional Investor and has written in the past for Thomson Reuters and CNN. Follow him on Twitter @Andrew_M_Willis.

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