The Nuclear Energy Renaissance Gains Recognition & Uranium Stocks Take Flight
Nuclear energy is resurgent and the uranium sector is benefiting in a big way
The nuclear energy renaissance is in full swing and the recent news couldn’t be more bullish for the future of nuclear energy. Tech giants like Amazon and Microsoft are making investments in nuclear energy in order to secure future sources of clean energy generation. In addition, the U.S. Government is pledging to triple nuclear power generation by 2050. A summary of the recent developments:
ADVANCE Act Becomes Law: The bipartisan ADVANCE Act was signed into law, marking a major policy win for nuclear energy. The act aims to boost the deployment of advanced nuclear reactors by streamlining regulations, encouraging international collaboration, and supporting microreactor projects at former fossil fuel sites. The legislation also emphasizes enhancing America’s nuclear supply chain and securing leadership in the global nuclear market, with the goal of improving energy security and reducing emissions.
Investment in Small Modular Reactors (SMRs): The Department of Energy (DOE) launched a $900 million funding program to support SMRs and other advanced nuclear technologies. These reactors are viewed as essential to meeting U.S. climate goals and energy demand by 2050, with SMRs offering a cleaner and more flexible power solution compared to traditional reactors.
Reactivation of the Three Mile Island Unit: Constellation Energy announced plans to restart one of the reactors at Pennsylvania’s Three Mile Island, which had been closed for economic reasons in 2019. The revival, backed by a new power purchase agreement with Microsoft, signals growing interest in nuclear power from tech giants seeking clean energy solutions.
Support from Big Tech Companies: Companies like Amazon and Microsoft have recently entered agreements to support the development of nuclear projects, such as SMRs, to power their operations. This aligns with broader efforts to secure clean, reliable energy as artificial intelligence and cloud computing drive up electricity consumption.
Nuclear energy is an integral part of the world’s decarbonization goals, renewables are not enough alone:
The brightening prospects for nuclear energy have resulted in tremendous moves across the uranium sector over the last few weeks. During Wednesday’s trading session, we witnessed powerful breakout moves in a number of stock, including…
Cameco (CCJ +7.87%)
Dennison (DNN +12.95%)
NexGen (NXE +10.45%)
Energy Fuels (UUUU +15.38%)
Notably, several of the uranium developers have relatively high short interest - Energy Fuels has 16% short interest and NexGen is at 9.75%. Short covering likely contributed to some of today’s breakout moves in the uranium sector.
Increased financial media coverage of the nuclear energy resurgence is also contributing to the uranium bull market.
Disclosure: Author is long CCJ shares at the time of publishing this article and may choose to buy or sell at any time without notice.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, corporate presentations and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This article is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.