Microsoft (MSFT) founder Bill Gates loves to solve extremely tough problems. For example, he is backing a startup company, TerraPower, which is trying to develop small-scale nuclear reactors. To pull this off, Gates is prepared to shell out several billion dollars.

However, he will also need a strategic partner. And according to a report from the Wall Street Journal, there are preliminary discussions with Toshiba. While the company is best known for its computer business, it also has a strong footprint in nuclear, especially with its U.S.-based Westinghouse division.
The plan is to develop traveling-wave reactors (TWRs), which use depleted uranium fuel and operate underground. Essentially, the belief is that a unit can operate a hundred years without refueling. Yes, this is certainly a game changer.

And, it looks like the opportunity could be in emerging markets. After all, as the economies expand, there will be a growing need for cheap energy.

But, to make TWRs a reality, there is still much work that needs to be done, such as the development of new high-strength materials. In fact, commercialization is likely not to happen until at least another decade.

Tom Taulli advises on business tax preparation and is also the author of a variety of books, including The Complete M&A Handbook. His website is at Taulli.com.

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