Profiting from Canada’s Nuclear Move

Canada is committed to the future of power generation. 

That was the message Justin Trudeau’s government put forward last week when they revealed that Canada Infrastructure Bank (CIB) will offer C$970 million (about $700 million US) to Ontario Power Generation to build a grid-scaled small modular reactor (SMR) in Ontario. 

If you haven’t heard of SMRs, they’re a relatively new technology that has several advantages over traditional reactors. They’re cheaper to build and they don’t leave as big a footprint. It’s also a technology more nations are looking into because it can be put in more places than traditional reactors can. Likewise, as their name suggests, the modular design makes it so that additional components can be added to these reactors over time as demand increases. 

This new SMR that Canada is constructing will go next to an existing 3500-megawatt station. It will be the first of similar projects that will eventually go up in other parts of the country. 

Canada sees how necessary nuclear power is and is following countries like the US, China, South Korea, and others in adopting this new technology. 

This is just one story, but it’s one that’s set to become more common over the next few years. 

Climate change is a big driver of it. Laws are being passed all over the world that will limit or outright ban the sale of gas cars to help address it. Canada, for instance, is banning new gasoline vehicles after 2035. 

The idea is to get more people into electric vehicles, but that won’t mean anything if the ability to charge all of those cars isn’t there. So building out nuclear capacity is one of the surefire ways to make sure that electricity demand is met without having to burn more fossil fuels. 

After the Fukushima disaster in 2011, countries all over the globe began phasing out nuclear technology for fear of a repeat incident. Those that didn’t outright get rid of it approached its use cautiously. Thanks to improvements in the technology’s safety, some countries changed their outlook and began rethinking their reluctance to use it. 

It was a slow process until the war in Ukraine changed outlooks and forced more countries to reconsider. 

All it took was Russia cutting natural gas supplies to Europe to spark an energy crisis and a conversation about energy security. 

Europe learned the hard way that having such an important resource at the mercy of an unfriendly nation would only lead to pain. Countries not directly affected by Russia’s cutting of supplies heard the warning loud and clear and began laying out their own plans. 

So what started as a slow process for changing the way power gets generated suddenly became priority number one. 

As it stands now, nuclear power is set to work alongside renewables to help countries become energy-independent. The role it will play will be critical in not just moving away from fossil fuels, but ensuring power generation is secure and not something that can be changed at the whim of a few bad actors. 

The revival we’re witnessing right now is going to be historic. 

Existing companies are transitioning to this technology and new companies that deal in this technology are popping up at the same time. 

They’re set to thrive as demand for nuclear reactors continues to grow. But that demand can only truly be met as long as those reactors have their fuel source. 

That’s why you’re going to see investment in uranium miners take off alongside investment in the technology. 

With nuclear power coming back into favor, uranium is going to be one of the most sought-after resources on the planet over the next few years. 

It’s another case of a large part of the supply being controlled by nations that aren’t always on good terms with the rest of the world. That’s why countries like the US, Canada, and others are looking for safe sources they can pull from. 

And companies in the countries that can provide that are going to come out as some of the biggest winners. 

There’s one company that has robust uranium projects here in the US. Not many people know about it. It’s sitting on at least 100 million pounds of the yellow metal, but its obscurity means that the stock sells for cheap. 

Here's why you should invest in this Uranium project.

That means that when the word eventually gets out about what this company has, you’ll be able to collect a healthy profit right alongside this uranium miner. 

Uranium’s price has already doubled, from $25 to $50, over the last few years. It’s only going up from there. So too will the value of the miners that produce it. 

It’s set to be one of the biggest investment stories of the near future. The sooner you learn the details, the better you’ll be able to position for massive gains.

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle