Nuclear has been nothing but trouble for US energy companies in the past few years, but it looks like the reactor space is heating back up.
Canadian infrastructure investor Brookfield Asset Management has agreed to purchase struggling nuclear company Westinghouse Electric for $4.6B — a day after utility company Dominion Energy acquired SCANA Corp for $14.6B, with 2 unfinished nuclear reactors.
Nuclear has had a rocky road in the states
In the past decade, nuclear power has been a money pit for anyone who touches it. Since acquiring Westinghouse in 2006, Toshiba’s taken a $6.3B write-down on its 4 nuclear reactors, thanks to complications with construction that put projects over budget and over-deadline.
Meanwhile, SCANA — who partnered with Westinghouse to construct their 2 reactors — also announced their plan to halt their $9B reactor project back in July (it’s unclear whether Dominion plans to pick up production again).
So why is Brookfield buying?
There’s speculation that the Trump administration will be as bullish on nuclear as he’s been for other once out of favor power sources.
And, as the only US company granted permits for new nuclear power plants since the Three Mile Island mishap, Westinghouse is a major gatekeeper to the industry — if they can get their sh*t together.