Skip to content

Chart of the week

Nuclear fusion: The next big thing?

(2024-Apr-08)

Last week there was a report (https://www.pppl.gov/news/2024/adding-just-enough-fuel-fire) of a major breakthrough using a brilliant new idea in controlled Nuclear Fusion. It is very good technical progress, but more of the same: steps (occasionally in the right direction) in a thousand-mile journey.
I was at Princeton in 1979 and breakeven was ~20 years away.
I was studying Nuclear engineering in the 1980’s and it was still 20 years away.
As of today, power from nuclear is still ~20 years away, and that might be when a design for commercial purposes will just begin.
You may get your first fusion-kWh out of the wall-socket the mid-late 2040s.
I consider myself optimistic and I sit on the right half of this distribution.

Source: “Princeton Scientists Unveil Breakthrough in Fusion Reactor Technology”, by Tyler Burden. The Telegraph 2024-Apr-4th.

Nuclear Fission will do far better, far earlier, but we’ve been harping on that for two years elsewhere.

The only way to profit from anything related to nuclear-fusion-power is to buy companies who are heavily concentrated on it but where fusion is NOT their core business. Even then, there is great risk; remember MKS Fusion? (A highly profitable hair-care products company that sank all its profits in the promise of perfecting an “inertial”-fusion reactor.

Possible more (but more viable) companies for fusion-power (other than an omni-investor like google) are: CVE, E and BCKIY (or BAB.LSE).
1. CVE (Cenvous energy): this is a good choice as few still know they’re invested in fusion, and any success will be surprise resulting in a big jumps.
Already a good business in oil/gas on its own. which pays 2.1% dividends. CVE has beaten the S&P500 over the last 5 yrs in total returns.



2. E (Eni): OIl gas explorer. 6.1% divs. A little more known for renewables like fusion has been recently range bound at a bottom: good time to sell puts or buy.

3. English company Babcock (BAB on London Stock Exchange or BCKIY as US-pinksheets): mainly in war engineering business, which is looking up especially in Europe with planned increased spending on military. Babcock has doubled in the last 5 months.

Pages: 1 2 3 4 5 6 7 8 9 10 11