Australian Chamber of Commerce and Industry director of economics and industry policy John Osborn said the group recognised that in current circumstances, the economic case in Australia for nuclear power generation against lower cost alternatives was “not yet clear”.

However, he said this was changing rapidly with new technologies and the growing need to reduce emissions.

“We must ensure the future development of a nuclear industry is not arbitrarily prohibited,” Osborn said.

World Nuclear Association director general Agneta Rising said it was “only natural that a technologically sophisticated country like Australia should seek to make expanded use of the nuclear fuel cycle as it attempts to address its climate and energy challenges”.

“The country is already home to at least one of the most advanced nuclear research and medical facilities in the world, not to mention being one of the largest suppliers of uranium,” Rising said.

Despite this technical and industrial heritage, the country currently makes no use of nuclear energy to generate electricity, with a law in place prohibiting this.

Rising said the Royal Commission presents the chance to dispense with this “fundamentally outdated” and unscientific policy forever.

“About two-thirds of the world's population live in countries which are supplied by nuclear energy and which enjoy reliable, affordable low-emission electricity as a result,” Rising said.

“Australia's well-equipped political, legal and educational structures mean that any such program could be started swiftly – with the support of experienced international partners.

“This would act as a growth engine for local and regional economies where facilities are sited, creating employment and business opportunities over many decades.”

The Royal Commission will consider the economic benefits of uranium and the value-adding potential for Australia during the mining, enrichment, power generation and storage phases of the nuclear cycle.

The WNA said the Royal Commission would lead to an objective assessment of the facts about nuclear energy and should identify the most realisable economic opportunities on offer to South Australia – and indeed the country – as well as formally recognise the immense greenhouse gas saving contribution that the technology is capable of making.

The WNA also said the Royal Commission showed Australia was “waking up” to realities around the best options for reducing greenhouse gas emissions, adding that the global nuclear industry “stands ready” to support the expansion of fuel cycle activities in South Australia – and especially a nuclear reactor program.

Osborn said Australia’s abundant supplies of uranium could help provide low emissions energy at home and abroad, “but only if we keep an open mind to developing a nuclear power industry”

“If we are serious about cutting greenhouse gases we must take a serious look at the potential of base-load nuclear power,” Osborn said.

“Some 31 countries use nuclear power and it provides more than 10% of the world's electricity, all with essentially zero greenhouse gas emissions.

“In France, nuclear power plants sit serenely alongside vineyards and sunflower fields. By every objective measure nuclear energy is a safe and clean energy source with minimal risks that can be managed.

“Business congratulates the South Australian government for showing leadership in the nuclear debate and for instituting a royal commission focussed on robust science and not the usual anti-nuclear scaremongering.”

Australia has 30% of the world’s reserves of uranium and could become a major world player in nuclear energy if the South Australia lead is followed through.

ACCI CEO Kate Carnell said business wanted to see an informed and rational debate about Australia’s future energy needs with all options on the table.

“With the closure of industries like automotive production in South Australia and elsewhere we cannot afford to turn our backs on emerging industries that will fill the gap and create jobs,” she said.

“ACCI would welcome similar royal commissions or feasibility studies in other states and nationally to advance the public debate and help people better understand the potential benefits of nuclear energy.”