Rising energy costs, energy security concerns and the growing demand for electricity are prompting a fresh look at the potential for nuclear energy in Ireland.  This is not just an Irish debate. Countries around the world are reassessing investing in nuclear energy, while investment in new reactor technologies, uranium supply and infrastructure is increasing – and with it, a range of investment options.

So how can investors get exposure to this sector?

A changing energy landscape

It’s not just data centres: the electrification of transport, heating and industry means electricity demand is expected to continue rising. At the same time, the cost and security risks associated with fossil fuels have become increasingly obvious in the wake of war in Ukraine and Iran.

Ireland has made significant investments in renewable energy, particularly wind. But renewable generation is inherently intermittent: the wind does not always blow and the sun does not always shine. That creates a challenge for an electricity system that needs to balance supply and demand continuously.

Nuclear is different. It can provide a reliable source of low-carbon electricity around the clock, potentially complementing renewable generation and reducing reliance on fossil-fuelled backup.

In the past, nuclear energy has faced strong opposition, with safety concerns from nearby Sellafield high on the agenda. Now, in the face of other threats, investors in Ireland and globally are re-assessing how to deploy capital in the sector.

Three ways to invest in nuclear

There are broadly three routes for investors looking to gain exposure to nuclear energy.

1. Invest in the raw materials

The nuclear industry ultimately depends on uranium. For obvious reasons, uranium is hard to hold.  You can’t simply stick it in a vault like gold or silver. LINK In practice, it’s difficult to own physical uranium like other metals.

You can however invest in uranium miners and companies involved in its production for a relatively direct exposure to the underlying commodity.

This is a direct way to play a potential increase in nuclear generation. Uranium prices can be volatile and mining companies carry their own operational, geopolitical and commodity risks.  One fund focused on uranium miners, Geiger Counter, saw its share price nearly double over the last year, before falling back by about 25%.

A more diversified mining fund will be preferable for many investors putting money into raw commodities.

2. Invest in the nuclear supply chain

Nuclear power is a complex industry, involving engineering, construction, equipment, technology and plant operation.  Companies involved tend to be well-capitalised major industrial businesses, often with government backing.

This creates opportunities beyond uranium itself, and diversifies your exposure.

One example is Rolls-Royce, which has significant involvement in nuclear technology and is developing the kind of small modular reactor technology Ireland is exploring. This type of investment can provide exposure to the nuclear theme without being purely dependent on uranium prices.  Rolls-Royce has nearly tripled in value over the last two years, driven by its defence exposure as well as rising interest in its nuclear offering.

3. Invest through a fund

At Moneycube we tend to use funds to express themes such as investing in nuclear energy.

This approach spreads the investment across multiple companies and countries rather than relying on a single stock. Of course, diversification does not remove investment risk, particularly in a specialist sector.  But it does offer the prospect of a smoother journey.

The VanEck Uranium and Nuclear Technologies ETF, for example, invests across companies involved in uranium and the wider nuclear energy infrastructure sector, including nuclear technology and development.  It’s up around 150% over the last three years, although so far this year it is broadly flat.

A newer fund, from the world’s biggest fund manager, BlackRock, was launched last year and offers similar exposure. iShares Nuclear Energy and Uranium Mining is up around 12% over the last year.

A broader approach involves investing in the infrastructure required to support electrification.

Funds such as Ecofin Utilities invests across areas including utilities and essential infrastructure. This provides exposure to the wider investment theme of rising electricity demand, grid development and the transition towards a more electrified economy, rather than making a specific bet on nuclear power.

Investing in nuclear energy is part of a bigger trend

It will be a long time before we know whether Ireland will build nuclear power stations. Right now, the law actually prevents it, and development remains focused on renewables and fossil fuels.

For investors, the bigger trend is clear: the world needs substantially more electricity, while simultaneously trying to reduce its reliance on fossil fuels. Nuclear, renewables, electricity grids and energy infrastructure will all play a role in meeting that demand.

For now, investors in Ireland have several ways to get that exposure in their portfolios.