Uranium Comes Back

The uranium market is growing. After the Fukushima disaster in 2011, public confidence in nuclear power plants has declined significantly. For this reason, politicians withdrew their support for this type of energy. Many power plants have been sespended or shut down forever. Fortunately, the atmosphere around nuclear energy has changed. I am writing fortunately because, in my opinion, this is one of the main ways of generating electricity in the 21st century.

After the initial fascination with renewable energy from the sun, wind and other natural energy sources, it was understood that this was not enough. These energy sources are very good, but they have their limitations. The efficiency of solar cells available on the market is currently around 20 per cent. In addition, they have a limited in time efficiency. They also need a lot of sunshine, and it is not enough everywhere. Another problem is energy storage. The same problem applies to wind energy. It needs to be stored.

POWER BANKS

The battery industry is developing very dynamically. However, there are still no perfect and capacious batteries to store surplus solar and wind energy. Tesla`s powerwall is really great product. Unfortunately its efficiency isn`t enough to common John Smith. Especially when you compare to  its price. I hope the this market will devolpe as soon as possible and decrease prices of home power banks. Nevertheless it is case for the future. We need more and more energy for our air conditioners, smartphones and EVs now.

I NEED POWER NOW

Global demand for electricity is growing. A growing industry and a growing world population will need more and more energy. In addition to this, there is a trend towards moving away from combustion cars to electric cars. Each of us is following Elon Musk`s and Tesla’s actions with bated breath. And this is just the tip of the iceberg of electric vehicles. Consider how much electricity you will need to generate as soon as 20 % of the vehicles are electrically powered. This will certainly be the case because the largest car manufacturers already have fully electric vehicles on offer.

Only nuclear power is able to provide constant and reliable access to such a large amount of electricity.

URANIUM OR THORIUM

Existing and emerging power plants are based on the conversion of uranium. This element will continue to be the basic raw material in nuclear energy for a long time to come. Of course, new concepts based on other radioactive elements will also be developed. An example is the thorium-based reactors, which are the hope for future green nuclear energy. The US, India, China and many countries have quite well-developed programmes to develop this technology, and certainly such power plants will also be built. Why, then, do we bet on uranium. Because here we already have everything ready and working, and because the costs of switching to new technology are enormous. Changing to thorium-based power plants, despite its advantages (which I may write about one day), will take decades. That’s why it’s worth investing in uranium-based businesses. 

WHERE WE ARE NOW ?

For all these reasons, uranium spot prices in 2018 increased by more than 50%, but are still so low that uranium producers operate below operating costs. Many mines are closed. An example is the McArthur River mine, which belongs to the market leader in uranium mining, i.e. Cameco Corp.We have an ideal market situation to enter into a long-term investment in uranium.

This situation is what it is all about:

  •  a long downturn in the uranium market due to a lack of public support for nuclear energy.
  •  closure and bankruptcy of weaker companies operating in the sector
  •  reduction of uranium supply (small mining, bankruptcy of many companies in this sector, ending stocks of uranium from nuclear warheads)
  •  constantly growing global demand for electricity (EV, industry, increase in the number of people)
  •  changing public sentiments in favour of nuclear power plants
  •  the move away from coal as a source of electricity
  •  a favourable political climate (nuclear energy is again good, as evidenced by the number of nuclear power plants under construction(57) and the number of planned investments for 2019 (132)

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LINKS:

World Nuclear Association

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Marcin Jagodzinski

Marcin Jagodzinski

Author and originator of the Wealthy Pensioner website, medical practitioner, author of articles on economic issues, enthusiast of modern technologies, fan of Brazilian culture and a man fascinated by blockchain technology.




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