Investing in the Global Shift to Nuclear Power

The climate crisis is a worldwide problem, and like any problem that affects a large number of people, there are differing opinions on how to solve it.

When it comes to avoiding the worst effects, many world leaders see nuclear power as the answer. French President Emmanuel Macron is one such leader, having recently unveiled a plan to develop miniature nuclear reactors. The plan would cost $1.16 billion and would not only supplement France’s existing reactors but would export reactors to other countries that still largely rely on coal.

This plan comes at a time when there is a worsening energy crisis in Europe and it faces an uphill battle throughout the region. Representatives from some EU member states haven’t forgotten the Fukushima disaster of 2011. Because of that, they think that more should be invested in renewables like wind and solar. While those long-standing technologies do play a role in reducing reliance on fossil fuels, having them as the only power sources in the future is shortsighted.

As it stands, renewables need better battery storage solutions to be able to keep up with current demand and projected demand. If anything, a carbon-free future will have nations using a combination of nuclear power and renewable sources. 

It’s a realization that some are slowly coming to, while others fight it and insist that nuclear power remains in limited use. Germany, for instance, has a plan in place to phase out its use of nuclear plants over the next few decades in favor of more widespread renewable use.

These phase-outs are also happening in other places throughout Europe. Belgium and Spain are taking steps similar to Germany while other countries are increasing nuclear capacity.

It’s an ongoing debate not just in Europe, but all over the world. Even so, the signs are pointing to nuclear power becoming the best chance we have at meeting demand while getting rid of coal and other sources that contribute to climate change.

That’s why leaders like President Macron, President Biden, and UK Prime Minister Boris Johnson are shifting policy toward increasing nuclear power use in their countries. It’s also why countries are actively pursuing technologies like the mini modular reactors France is developing. These are not only cheaper to build, but safer than traditional nuclear plants. In some cases, they could replace aging nuclear plants and become the de facto method for nuclear power generation.

Increased demand, innovation, higher safety standards, and growing acceptance of nuclear power mean that many countries all over the world will make the change. Even if not all world leaders get on board, enough will that the shift will be noticeable.

But of course, none of this will matter without the fuel that makes all of this possible. 

If you need even more proof that nuclear power is becoming more acceptable, just look at the price of uranium in recent days. It started this year at around $29 per pound. As of the time I’m writing this, it’s closer to $49 per pound. It’s been about a decade since the last time it was around this price and the trend isn’t likely to reverse any time soon.

Supply is limited, demand is climbing, and there aren’t many companies out there capable of bringing the yellow metal to market. All of those factors, along with increasing public support from world leaders, means that investors will keep buying up shares of uranium producers for the next decade.

There are a few little-known plays out there that have escaped notice so far.

You’ll want to get in while you can because the herd will eventually hear about these names too.

And when that happens, they will take off just like the bigger producers have.

Keep your eyes open,

Ryan Stancil
Editor, Daily Profit Cycle