Winning bet on the spread between gas and coal/nuclear prices

ByRod Adams

A small group of investors made a bet last year that the spread between the cost of natural gas fired electricity and the cost of electricity from coal and nuclear power plants would increase. They recently cashed in on the bet, netting a profit of almost $5 BILLION on a $900 million dollar investment.

The story is described in Simon Romero’s article titled Texas power deal nets $5 billion which was originally published in the New York Times and was reprinted on 23 November 2005 in the International Herald Tribune.

Interesting reading that gives some response ammunition to people that continue to claim that no one wants to invest in nuclear power.

Rod Adams
Rod Adams

Rod Adams is Managing Partner of Nucleation Capital, a venture fund that invests in advanced nuclear, which provides affordable access to this clean energy sector to pronuclear and impact investors. Rod, a former submarine Engineer Officer and founder of Adams Atomic Engines, Inc., which was one of the earliest advanced nuclear ventures, is an atomic energy expert with small nuclear plant operating and design experience. He has engaged in technical, strategic, political, historic and financial analysis of the nuclear industry, its technology, regulation, and policies for several decades through Atomic Insights, both as its primary blogger and as host of The Atomic Show Podcast. Please click here to subscribe to the Atomic Show RSS feed. To join Rod's pronuclear network and receive his occasional newsletter, click here.

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