Trump has not just said “drill, baby, drill” but also: “We will export American energy all over the world.”

The USA set a precedent by moving away from Paris 2016, and others are likely to follow, but more importantly it undermines low margin and subsidised green energy projects around the world [1]. What’s the point for instance in being virtuous, advocating heavily subsidised green hydrogen in Australia in lieu of far cheaper LPG from USA, if it ends up costing taxpayers, industries and our economy?

Let’s look at other things that are going on. The US is advocating that Australia manufacture nuclear fuel, and start a nuclear energy sector [2]. Meanwhile various US companies are developing Small Modular Reactors (SMRs) including: Nuscale, Terrapower, GE/Hitachi, Westinghouse, Oklo, BWXT advanced reactors, X-Energy, and Kairos Power [3]. Why are they doing this? And is there a link?

The answer may lie in China and Russia. Both countries are building and exporting nuclear reactors around the world. A projected 180GW of nuclear energy, 180 x 1000 MW reactors are needed by 2050, this number may go even higher with an AI boom. When nuclear reactors are installed in foreign countries, it locks in technical support and supply chains for decades, and an implicit level of geopolitical influence [3]. As a result, any request by the US for Australia to enrich uranium, make nuclear fuel, and have a nuclear energy industry, has energy policy and geopolitical implications for both countries.

[1] https://www.bbc.com/news/articles/ce85709xdk4o

[2] https://c3newsmag.com/five-of-the-worlds-leading-small-modular-reactor-companies/

[2] https://carnegieendowment.org/research/2024/10/nuclear-power-united-states-energy?lang=en