A Japanese newspaper is reporting that TerraPower LLC, a company owned by Microsoft (MSFT) chairman Bill Gates, has begun discussions of a partnership with Toshiba Corporation to develop a new nuclear reactor. The technology, known as a traveling-wave reactor, allows a reactor to operate for as much as 100 years without refueling. Current reactors must be refueled every few years.

The news has boosted Toshiba shares in Japan, as a Toshiba spokesman confirmed that discussions have started but noted that they are still at an early stage. There is no report of how much Gates might invest in the venture.

The traveling wave technology could use the enormous amounts of spent nuclear fuel currently being stored around the world as its main source of fuel to generate electricity for “tens of thousands of years for 10 billion people,” according to a TerraPower presentation. That’s pretty heady stuff.

While nuclear power generation is often viewed as a viable alternative to the high carbon emissions of coal and other hydrocarbons, the concerns surrounding the use of nuclear power to generate electricity cannot be downplayed. First is the danger of accidents such as the devastating near-meltdown at Chernobyl. Second is what to do with all the spent fuel. A third concern is the potential for making weapons-grade material from the enriched uranium needed to power the nuclear plants.

The safety concern, though not negligible, is typically answered by pointing out that the design of Chernobyl was inherently flawed and that no currently operating plant uses that technology. Since the Chernobyl incident, there have been no other similar problems.

Dealing with spent fuel has, and will continue to be, a significant problem for the light-water reactors that make up the bulk of today’s nuclear fleet. The U.S. is no closer to dealing with that problem than it was 20 years ago when discussions first started. The proposed facility at Yucca Mountain in Nevada is not going to happen.

The third concern is that the enriched uranium will fall into the hands of terrorists or even a state (think, Iran) that might use the fissile material to build nuclear weapons. As the demand for nuclear fuel rises and more is produced, this concern gets sharpened.

The traveling wave reactor is completely different in design from the Chernobyl design, and the safety concerns, though still needing to be worked out, are likely to be relatively modest. Because the new design does not need to be refueled as often, the amount of spent fuel created is considerably less than in current designs.

Finally, because traveling wave technology only requires a small amount of fissionable fuel at the time the reactor is brought online, the total amount of enriched uranium required for nuclear power generation is reduced. That reduces the possibility that the stuff will fall into the wrong hands.

TerraPower thinks it could have a demonstration project in 10 years and that commericial development could start within 15 years. As with all things nuclear, the timelines are long, and they nearly always get longer as public concerns are raised.

Still, Gates’s investment, if it happens, might encourage more focus on nuclear power development. President Obama has spoken in favor of nuclear power, and the U.S. Department of Energy recently announced loan guarantees for new nuclear power plants in the U.S.. Nuclear energy, for all its problems, is likely to make the biggest dent in carbon emissions in the foreseeable future.

Tell us what you think here.

Related Articles:

• Baidu Price Target Raised on Google’s Move to Hong Kong
• 7 Low-Risk, High-Dividend Stocks
• Pepsi Sets Sights on Sodium Levels