The nuclear industry is being shaped by the war in Ukraine and climate change.

• The nuclear power industry is facing increased pressure due to both climate change and heightened security concerns resulting from Russia's invasion of Ukraine and targeting of the Zaporizhzhia nuclear power plant.
• In 19 countries, 55 new power reactors are being constructed, with only two located in the United States, specifically at the Vogtle plant in Georgia.
• Lately, China and Russia have been the leading powers in nuclear energy. However, the United States is making an effort to regain prominence with innovative nuclear technology.

Nuclear power is becoming increasingly important in the face of climate change and global security concerns.

Nuclear power plants emit no carbon dioxide while producing energy, offering a cleaner alternative to the fossil fuels contributing to global warming.

The global energy mix is broken, and the use of coal and other fossil fuels is harming humanity, according to U.N. Secretary-General António Guterres, who made the statement on Monday following the release of the U.N.'s Intergovernmental Panel on Climate Change's most recent report.

In the same week, a building in the Zaporizhzhia nuclear power plant compound in Ukraine was set on fire by Russian military forces.

"For the first time in history, a terrorist country has resorted to nuclear terror, as stated by Ukraine's President Volodymyr Zelenskyy in a video statement," according to a translation.

Despite the IAEA's report that the nuclear power plant was still operational and no radioactive material had been released, the security event caused widespread fear worldwide.

Kenneth Luongo, founder of the nonprofit Partnership for Global Security, stated that there will be a teeter totter regarding the security and energy policy.

The population of Ukraine is concerned about the safety of nuclear reactors after they came under attack, as nuclear energy is often associated with weapons, danger, radioactivity, and health risks.

Last year, at the COP 26 climate conference, there was a shift in sentiment about nuclear energy as nations recognized they cannot achieve their climate goals solely through renewable sources like wind and solar.

China and Russia dominate

China and Russia have been the most dominant political powers in nuclear power.

Over 440 nuclear power reactors in more than 30 countries provide about 10% of the world's electricity, according to the World Nuclear Association. Currently, 55 new reactors are being constructed in 19 countries, with 19 of those in China, while the U.S. only has two underway.

According to John Kotek of the Nuclear Energy Institute, China has the most active program of new nuclear construction.

China's commercial nuclear energy and civil nuclear energy sectors are growing at an unprecedented rate, with construction happening at a pace comparable to the US in the 70s and France in the 70s and 80s, according to Kotek.

The surge in demand for energy from China's growing population entering the middle class is driving the country's focus on constructing new nuclear energy reactors.

Currently, three new nuclear reactors are under construction in Russia, according to Kotek's description of a "steady program" of new nuclear buildout in the language.

But Russia is also the world’s top nuclear technology exporter.

In addition to Russia, VVER reactor designs, also known as water-water power reactors, are being constructed in several other countries, including Bangladesh, Belarus, India, Iran, Slovakia, and Turkey.

The United States has lost the ability to build conventional nuclear reactors due to a lack of "muscle memory" resulting from negative perceptions of nuclear power after accidents at Three Mile Island, Chornobyl, and Fukushima.

But the tide is starting to turn.

The Bipartisan Infrastructure Law, signed into law in November, included a $6 billion program to preserve the existing U.S. fleet of nuclear power reactors, effectively serving as a big subsidy for the Biden administration's solution.

Currently, between 75 and 100 nuclear-energy-related bills are being considered in state legislatures across the country, according to Kotek. In contrast, a decade ago, the average number of such bills was just a dozen.

"Although not every bill will pass, the increase in interest in nuclear energy is evident," Kotek stated.

The surge in interest in nuclear energy is mainly due to worries about climate change and is most pronounced in areas where coal industries are shutting down.

According to Kotek, there is a "coal-to-nuclear transition" occurring, which has caused concern among communities and states that are considering the closure of coal plants. These communities and states want to make the most of their highly skilled workforce and the assets that exist at the retiring coal plant.

In February, West Virginia lifted its 25-year ban on nuclear power plant construction.

The Russia-Ukraine war presents an opportunity for U.S. nuclear firms to expand their presence in the global market, as Russia's actions disqualify it from being a major player.

The IAEA's resolution to prevent attacks on nuclear power plants, which Russia attacked at Zaporizhzhia in Ukraine and China did not vote in favor of, will negatively impact both countries' nuclear export reputations, according to Luongo.

Whether the U.S. and other democratic countries swiftly act on these points and seize this opportunity remains the issue.

The US is focusing on new nuclear

In many regions, natural gas has become a more cost-effective baseload energy alternative compared to building nuclear plants.

The U.S. is intensely pursuing the development of the next generation of nuclear technology.

The US government is investing billions of dollars in the development of small modular reactors to prevent Russia and China from dominating the next phase of the nuclear market. The Idaho National Lab is being used as a testing ground for these reactors, specifically.

Since the 1950s, there has been some variation of the technology for these smaller, advanced reactors, but they are currently experiencing a resurgence, as stated by Luongo.

Standard parts can be used for construction, which is faster and less expensive than bespoke construction.

While the US is striving to become technologically competitive, it lacks a comprehensive policy framework, according to Luongo, who spoke to CNBC. In terms of nuclear reactors, conventional models use uranium enriched to approximately 5%, while advanced reactors use uranium enriched to about 19%, just below the IAEA's threshold for weapons-grade uranium, which is 20%.

Luongo stated that we have not yet fully explored the implications of that from a nuclear security and non-proliferation standpoint.