Ex Ynys Môn Tory MP launches nuclear investment fund

Martin Shipton

Former Ynys Môn Tory MP Virginia Crosbie has co-launched an investment fund aimed at helping to capitalise new projects in the nuclear sector.

Ms Crosbie won the seat from Labour in 2019 but lost it to Plaid Cymru’s Llinos Medi at this year’s general election in July.

As well as Ms Crosbie, herself a former investment banker, the new firm Nuclear Capital Partners also comprises former president of the Nuclear Institute and nuclear safety and risk expert Jasbir Sidhu and prominent nuclear industry insurer Michael Dawson. It plans to tap into a huge global expansion in large-scale nuclear and emerging small modular reactors (SMRs) by assisting institutions in deploying capital into the nuclear life cycle.

Wylfa

During her time at Westminster, Ms Crosbie advocated the development of a new nuclear power station at Wylfa in her constituency, was vice chair of the All-Party Parliamentary Group (APPG) for Nuclear, and chaired the SMR APPG and the Nuclear Delivery Group.

She said: “Joining Nuclear Capital is the logical next step in my nuclear journey as we see huge developments in many countries such as recently announced UK pension reforms designed to kickstart infrastructure investment.

“The aim of the fund is to diversify the investment risk within nuclear by investing in and across the nuclear life cycle – fuel fabrication, new build, operation, and decommissioning – where opportunities present themselves. But the team Nuclear Capital has assembled is key. It’s a partnership understanding all aspects of the nuclear market – finance, insurance, regulation, law, policy, design, build and operation, plus decommissioning and waste management.”

Nuclear risk

Dawson, who founded the world’s leading insurer of nuclear risk, Lloyd’s Syndicate 1176, in the 1990s said: “We are entering a period of sustained nuclear expansion on the back of net zero and the desire for energy security. This transition will require hundreds of billions of dollars of investment both in terms of equity and debt. We believe support is needed for investors to better understand the risk, to optimise returns to capital and enable the industry to grow. I think Nuclear Capital Partners can bring this expertise and discipline to investors to the benefit of all stakeholders in the energy transition.”

He added: “I formed a specialist business more than 30 years ago to insure the nuclear industry at a time when many people did not understand the risks involved in the nuclear world and there was considerable scepticism from others about the industry. As the sector now expands with increasing governmental, business and public support, there is now even more opportunity and far less scepticism around the risks associated with nuclear compared to the benefits it can provide in terms of affordable, stable, low carbon energy.”

Advocate

Sidhu explained his background as a nuclear engineer made him unashamedly an advocate for the energy source. He sold his successful nuclear risk and safety business Corporate Risk Associates (CRA) recently to the French engineering group Assystem.

“Since stepping away from CRA, it has become clear that nuclear finance is my next challenge and a huge opportunity for investors. It can be done and it needs to be done, if we are to help the sector reach its ambitions. We believe Nuclear Capital Partners can be instrumental in supporting capital to find the right home at a moment of expansion.

“We are seeing ambitions in many countries, like the US and the UK, to double or even triple nuclear capacity on the back of a desire to limit greenhouse gases emitted from fossil fuel energy production. I strongly feel it is important we can play our part.”

The partnership has engaged London-based regulatory and compliance firm Khepri to take the start-up towards authorisation by the Financial Conduct Authority.

The announcement of Nuclear Capital comes on the back of the election of Donald Trump as US president. He enacted pro-nuclear policies when last in office and analysts expect more of the same this time around alongside growth in Europe and Asia and further developments in nuclear fuel production and SMRs.

This month six more countries, including Turkey, Nigeria and Kazakhstan, joined the Declaration to Triple Nuclear Energy by 2050 at COP29 – bringing the total to 31 states. US big tech has also become involved with Google, Microsoft and Amazon all announcing nuclear power initiatives in the drive to net zero.