5 min read
Learn more
Hide
Learn more
Hide
The global energy landscape continues to evolve, and nuclear is emerging as a critical player in the energy transition. With recent policy shifts and growing energy demands—as we explored in our last newsletter on sustainability trends to watch—nuclear presents unique potential to provide reliable power while reducing carbon emissions.
In this newsletter, Alexei Viarruel, Executive Director, Global Natural Resources, Investment Banking at J.P. Morgan, shares valuable insights into the revitalization of U.S. nuclear energy, reflecting on challenges and opportunities within the sector.
Also in this update, we showcase innovative companies in industries across the green economy, from sustainable foods to energy storage.
Our team continues to track emerging trends within the alternative energy and climate tech landscape. We’ve enjoyed gaining insights and connecting with others in the space, most recently at San Francisco Climate Week in April. And we look forward to more of these opportunities, including Climate Week NYC in September.
The state of nuclear energy: A critical transition point
According to the World Nuclear Association, nuclear power generates 20% of electricity and over 50% of clean energy in the United States, positioning it as a cornerstone of carbon transition efforts. Nuclear can provide a reliable and efficient power source that can operate continuously, unlike other renewable sources like wind and solar that are weather-dependent.
Nuclear power’s stable and substantial output makes it an important component of a low-carbon energy future. The consistent delivery from nuclear plants can help reduce reliance on fossil fuels, decreasing greenhouse gas emissions and supporting global sustainability goals.
Nuclear power is also gaining attention in the face of rising power demand from the technology and industrials sectors. As artificial intelligence continues to evolve and electric vehicles increase in number, the market is demanding unprecedented amounts of electricity from the grid. Data centers require vast amounts of 24/7 baseload power to operate efficiently and reliably, which sources like solar cannot provide. Investors are drawn to the potential for stable returns from nuclear projects, while policymakers recognize the strategic importance of nuclear energy in achieving energy security.
Industry renaissance accelerates
Notwithstanding the costs and long project time frames often required to build new nuclear power plants, investor enthusiasm is reaching new heights.
Viarruel attributes this to nuclear power’s ability to satisfy both reliability and carbon-reduction requirements. “We’re at an inflection point where there is a dire, absolute need for more power generation, paired with the fact that we’re all trying to reduce carbon emissions,” he said. “Nuclear generation checks all the boxes.”
“We’re at an inflection point where there is a dire, absolute need for more power generation, paired with the fact that we’re all trying to reduce carbon emissions. Nuclear generation checks all the boxes.”
Alexei Viarruel
Executive Director, Global Natural Resources, Investment Banking
Hurdles persist despite bipartisan alignment
Bipartisan support creates tailwinds for the sector: President Donald Trump’s administration is currently continuing existing initiatives like the Advanced Reactor Demonstration Program launched during Trump’s first term and the recent loan guarantees offered by the U.S. Department of Energy’s Loan Programs Office during former President Joe Biden’s term.
Regulatory hurdles persist despite political alignment. For example, “The Nuclear Regulatory Commission is probably one of the best regulatory bodies in the world as far as nuclear goes,” Viarruel said, but its project approval times can be slow.
Global nuclear expansion faces more obstacles. Nuclear reactor licensing is largely country-specific, requiring many nations to build regulatory frameworks from scratch. Moreover, specialized expertise in nuclear design and safety assessment is scarce globally. Without international licensing coordination and development of technical skill pools, first-time nuclear countries could struggle to move from interest to implementation.
Tech advancements drive perception shift
Public perceptions around nuclear energy are often fueled by apprehensions about safety, radioactive waste and the potential for disaster, which can hinder development and deployment. Emerging nuclear technologies can help to address these concerns by developing safer reactor designs. These design advancements are crucial for shifting perception and enabling increased adoption.
For example: Most operating nuclear plants worldwide today—and all current U.S. plants—use Generation II reactor designs pioneered in the 1970s and 1980s. A smaller number of advanced Generation III designs with enhanced safety features operate in China, Russia and the United Arab Emirates, while more cutting-edge Generation IV designs remain in development.
Advanced Generation III designs incorporate passive safety systems that do not require human intervention or external power sources to function. “These safety systems use natural forces such as gravity, natural circulation and convection to maintain safe operating conditions and prevent overheating. This reduces the risk of human error and equipment failure, which can provide an additional layer of security against meltdowns or other nuclear disaster situations,” Viarruel said.
Other innovations in reactor designs include simplified systems with fewer potential failure points and enhanced instrumentation providing operators real-time data. Advanced materials and innovative cooling systems further reduce risks.
For more insights, read about the “need case” for nuclear in this article from Darcy Partners.
Employee Spotlight: Alexei Viarruel
Alexei Viarruel started his financial career in Trinidad & Tobago—the Caribbean’s largest oil and natural gas producer—working closely with energy companies. As Executive Director, Global Natural Resources, Investment Banking at J.P. Morgan, he brings 15 years of specialized expertise in the energy sector to clients navigating the evolving nuclear energy landscape. Based in New York, Viarruel holds a CFA designation and an MBA from the Cornell Johnson Graduate School of Management.
Alexei Viarruel, Executive Director, Global Natural Resources, Investment Banking
What I’m proud of: I played a part in helping the largest owner of nuclear energy in the U.S. expand its business to better serve customers. I was part of the J.P. Morgan team that served as financial advisor to Constellation in its recent agreement to acquire Calpine Corp.
What I’m looking forward to: I’m excited about the renaissance in the U.S. nuclear industry. I believe that financial practitioners and the technical teams we partner with can build the level of power generation that we need, and I’m excited to see it happen.
Client highlights
Learn about J.P. Morgan clients working to build the infrastructure and technology to advance energy efficiency through innovation.
FlexGen Power Systems
The Ocotillo Wells Solar project in Borrego Springs, California, is supported by FlexGen's HybridOS energy management system software.
FlexGen Power Systems, a leading provider of energy storage solutions and software technology, has secured a revolving credit facility with J.P. Morgan. The $75 million revolving credit facility is designed to support FlexGen's ambitious growth plans and reinforce its ability to deliver advanced energy storage technologies to enhance the reliability of today's electric grid and accelerate the transition toward an ever-new grid. J.P. Morgan served as the lead arranger and administrative agent for the facility.
Nevados
Jackson Morrow of Green Economy Banking and Global Head of Sustainability Heather Zichal visit Nevados.
Traditionally, solar panels have had to be installed on flat or nearly flat ground. But Nevados is revolutionizing the industry with solutions that allow panels to be installed on any terrain, from flat ground to rolling hills.
“Nevados’ technology is game changer for the industry, increasing the number of site options for large-scale solar projects while decreasing installation costs,” said Jackson Morrow, Vice President, Green Economy Banking. “We’ve supported Nevados with a line of credit to help fuel this growth.”
Spring Foods
Pioneering innovation in the bread industry, Spring Foods is building a portfolio of brands defined by delicious and widely accessible food. Watch Co-Founder Grant Gettering explain how Spring Foods is disrupting the industry.
Clean tech trends
At this year’s Clean Tech Stars Conference, experts from Carbon Clean and Aira shared how new technologies are delivering the energy we need, and what a clean energy ecosystem will look like.
Insights
Deepen your understanding of today’s climate, sustainability and business landscapes with additional resources from across JPMorganChase.
Reports and research
- What is liquefied natural gas, and why is it so important?
- Heliocentrism: Objects may be further away than they appear
- Climate Intuition: The future of homeowners insurance
- Climate Intuition: Unlocking resilience through strategic climate adaptation
- 2025 Startup Insights
Industry news
Business planning and investment
Learn more
Contact the Green Economy Banking team to learn more about how we can help your company achieve its goals. Stay informed with our quarterly newsletters.
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/commercial-banking/legal-disclaimer for disclosures and disclaimers related to this content.
