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A Hybrid Regulatory Approach by the NRC on Fusion

A fusion energy system is a power plant that harnesses energy released from the fusion of atomic nuclei to generate electricity. New commercial fusion designs intended to assist in the future of mass power, are being engineered with very little regulatory framework for them to design toward. The US Nuclear Regulatory Commission (NRC) Chairman Christopher Hanson wants the regulatory framework for fusion energy systems based on its existing process for licensing the use of byproduct materials. A new framework may add to the number of companies designing and developing pilot reactors.

The process of fusion involves bringing together atomic nuclei under high temperatures and pressures to create a plasma state, where the positively charged nuclei fuse to form heavier elements, releasing a large amount of energy in the process. Unlike traditional nuclear power plants, which rely on nuclear fission, fusion power plants do not produce long-lived radioactive waste and have a virtually limitless supply of fuel in the form of hydrogen isotopes found abundantly in seawater. Fusion energy, holds great promise as a clean and sustainable source of energy as fossil fuels fall from favor.

“Dozens” of companies are developing pilot-scale commercial fusion designs, according to NRC Chair Christopher Hanson. In a press release by the NRC last Friday Hanson said the “precise future” for fusion in the USA is uncertain, the agency should provide “as much regulatory certainty as possible given what we know today.” The reason provided in the release said,”Licensing near-term fusion energy systems under a byproduct material framework will protect public health and safety with a technology-neutral, scalable regulatory approach.”

Is this overstepping on the part of the NRC? The Commission describes a fusion system as a device that contains nuclear fusion reactions as well as associated radioactive materials and supporting structures, systems and components – would generate electricity from the energy released when hydrogen atoms are combined to form helium, rather than the splitting, or fission, of uranium atoms. This very definition causes the systems to fall outside the requirements to be regulated by NRC as nuclear reactors, because they do not involve special nuclear material (plutonium, uranium-233 or enriched uranium) and cannot produce the self-sustained neutron chain reaction that defines nuclear fission reactors under NRC regulations.

The NRC staff outlined suggested options earlier in 2023 for the licensing and regulation of fusion systems. It categorized them as “utilization facilities”, with a novel regulatory framework developed to address associated specific hazards. These include a byproduct material approach, which adds to the existing regulations for byproduct material licenses. It also included a hybrid framework where the decision on whether a byproduct material or a utilization facility approach would be most appropriate for a particular system based on the potential dangers and hazards inherent to it – it would need to define what would be most applicable for that system. The NRC staff supported the use of a hybrid system in its submission.

Tritium and other radioactive materials which occur or are used in fusion systems have been categorized by the NRC as byproduct material. The NRC has now directed its staff to create a regulatory framework for fusion systems built on the agency’s existing process for licensing the use of such materials.

The Commission will move forward with a “limited revision” to materials licensing regulations, including consideration of whether the revision should include a new category specifically for fusion energy systems. The rule, according to the NRC, take into account fusion systems “that already have been licensed and are being regulated by the Agreement States, as well as those that may be licensed prior to the completion of the rulemaking”. The commission staff is also exected to expand materials license guidance to cover fusion systems across the US.

The US Department of Energy (DOE) announced in 2022 up to $50 million of federal funding to support experimental research in fusion energy science as part of the Biden administration’s vision to accelerate fusion energy. New designs are speeding along as a few fusion systems are likely reach design proof-of-concept, and even net power production later this decade, with deployment projected to follow in the 2030s, according to the NRC.

One US fusion system developer, Helion Energy, expressed support for the NRC’s announcement. “This approach provides a clear and effective regulatory path for our team to deploy clean, safe fusion energy,” the company said on Twitter.

Sources

Nuclear Fusion’s Potential to Be a Highly Disruptive Breakthrough with Investment Opportunities

Scientists at the Energy Department’s Lawrence Livermore National Laboratory (LLNL) in California announced the first-ever demonstration of fusion “ignition.” This means that more energy was generated from fusion than was needed to operate the high-powered lasers that triggered the reaction. More than 2 megajoules (MJ) of laser light were directed onto a tiny gold-plated capsule, resulting in the production of a little over 3 MJ of energy, the equivalent of three sticks of dynamite.

This important milestone is the culmination of decades’ worth of research and lots of trial and error, and it makes good on the hope that humanity will one day enjoy 100% clean and plentiful energy.

This article was republished with permission from Frank Talk, a CEO Blog by Frank Holmes
of U.S. Global Investors (GROW).
Find more of Frank’s articles here – Originally published December 19, 2022.

Unlike conventional nuclear fission, which produces highly radioactive waste and carries the risk of nuclear proliferation, nuclear fusion has no emissions or risk of cataclysmic disaster. That should please activists who support renewable, non-carbon-emitting energy sources such as wind and solar and yet oppose nuclear power.

75th Anniversary of Another Great American Invention, The Transistor

I think it’s only fitting that this breakthrough occurred not just in the U.S., the most innovative country on earth, but also on the 75th anniversary of the invention of the transistor.

Like fusion energy, the transistor’s importance can’t be overstated. Invented in December 1947 in New Jersey’s storied Bell Labs—also the birthplace of the photovoltaic cell, fiber optic cable, communications satellite, UNIX operating system and C programming language—the transistor made the 20th century possible. Everything we use and enjoy today, from our iPhones to our Teslas, wouldn’t exist without the seminal American invention.

In 2021, the electric vehicle maker unveiled its proprietary application-specific integrated circuit (ASIC) for artificial intelligence (AI) training. The ASIC chip, believe it or not, boasts an unbelievable 50 billion transistors.

Private Investment in Fusion Technology Has Been Increasing

Getting your electricity from a commercial fusion reactor is still years if not decades away, but that hasn’t stopped money from flowing into the sector. This year, private investment is estimated to top $1 billion, following the record $2.6 billion that went into fusion research in 2021, according to BloombergNEF.

Private Sector Investment in Nuclear Fusion May Top $1 Billion in 2022

At the moment, there aren’t any publicly traded fusion companies. However, Bloomberg has a Global Nuclear Theme Peers index that tracks listed companies with exposure to the industry, estimated by Bloomberg to one day achieve a jaw-dropping $40 trillion valuation. Some of the more recognizable names include Rolls-Royce, Toshiba, Hitachi and General Electric.

For the five-year period, the index of 64 “nuclear” stocks has advanced approximately 100%, compared to the MSCI World Index, up 38% over the same period.

The number of private firms involved in R&D continues to grow, raising the possibility that some will tap public markets in the coming years.

Among the largest is Commonwealth Fusion Systems, or CFS, which spun out of MIT’s Plasma Science and Fusion Center in 2018. The company raised $1.8 billion in December 2021, on top of the $250 million it had raised previously. Its investors include Bill Gates and Google, along with oil companies, venture capital firms and sovereign wealth funds. CFS claims to have the fastest, lowest cost solution to commercial fusion energy and is in the process of building a prototype that is set to demonstrate net energy gain by 2025.

Another major player is TAE Technologies. Located in California, the company has raised a total of $1.2 billion as of December 2022, from investors such as the late Paul Allen, Goldman Sachs, Google and the family office of Charles Schwab. TAE says it is developing a fusion reactor, scheduled to be unveiled in the early 2030s, that will generate electricity from a proton-boron reaction at an incredible temperature of 1 billion degrees.

Other contenders in the field include Washington State-based Helion Energy, Canada’s General Fusion and the United Kingdom’s Tokamak Energy. In February 2022, Tokamak broke a longstanding record by generating 59 MJ of energy, the highest sustained energy pulse ever.

As an investor, I would keep an eye on this space!

Solar Accounted For 45% Of All New Energy Capacity Growth In The U.S.

In the meantime, energy investors with an eye on the future still have renewable energy stocks to consider.

2022 has been a challenging year for the industry, with much of it facing supply constraints. According to Wood Mackenzie, total new solar installations in the U.S. were 18.6 gigawatts (GW), a 23% decrease from 2021.

Even so, solar accounted for 45% of all new electricity-generation capacity added this year through the end of the third quarter. That’s greater than any other energy source. Wind was in second place, representing a quarter of all new energy power, followed by natural gas at 21% and coal at 10%, its best year since 2013.

WoodMac expresses optimism in the next two years. Solar projects that were delayed this year due to supply issues may finally come online in 2023, and by 2024, the real effects of President Biden’s Inflation Reduction Act (IRA) should be felt. The U.K.-based research firm forecasts 21% average annual growth from 2023 through 2027, so now may be an opportune time to start participating.

One of our favorite plays right now is Canadian Solar, up more than 11% for the year. On Thursday of this week, the Ontario-based company announced that it would begin mass-producing high efficiency solar modules in the first quarter of 2023. Canadian Solar shares were up more than 1% last week, despite experiencing two down days on this week’s news of continued rate hikes into 2023.

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The BI Global Nuclear Theme Peers is an index not for use as a financial benchmark that tracks 64 companies exposed to nuclear energy research and production. The MSCI World Index is a free-float weighted equity index which includes developed world markets and does not include emerging markets.

Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of (09/30/22): Tesla Inc., Canadian Solar Inc.

Tag: Fusion

Is the NRC Overstepping on Fusion?