Nuclear energy is staging a comeback in the United States.
And the recently proposed ADVANCE Act could help America deploy the next generation of nuclear reactors.
I talked about this in my essay yesterday.
The ADVANCE Act’s goal is to make America a leader in nuclear energy.
And it has a good chance of becoming a law…
But nuclear resurgence goes beyond our nation.
Countries around the world are realizing that nuclear energy is key for their economic and geopolitical future.
So, today, I will discuss the big developments happening in nuclear power globally. I believe it will kick off a huge bull run in one of my favorite commodities. Lastly, I’ll show you two ways to play this explosive trend… and how to profit from the ongoing power shift.
The Nuclear Revival Is Global
As I mentioned yesterday, the revival of nuclear power is not limited to the U.S…
In fact, many other countries are moving at a faster pace.
The world’s largest economies – China, Japan, the U.K., France, and other G20 member states – are rapidly adopting nuclear energy into their energy independence strategies.
(The G20 is a collective of 19 countries, plus the EU, that work to address issues in the global economy.)
Take Japan, the world’s third-largest economy.
After the meltdown at its Fukushima nuclear power plant in 2011, Japan curtailed its nuclear energy program.
It shut down most of its 54 nuclear reactors, cutting off nearly 30% of the country’s electricity supply.
But now, Prime Minister Kishida says the Japanese energy situation has “drastically changed” after the Ukraine invasion.
So the country is finally putting numerous idle reactors back online. That’s on top of developing 20 new reactors to replace those that have been shut down due to Fukushima.
Now, the reason I’m highlighting Japan is because it’s such an obvious illustration of a U-turn.
But, again, this trend is not unfolding in just one country. We’re looking at an irreversible revival of nuclear energy globally.
In the U.K., the government has announced plans to triple its nuclear power generation capacity by 2050.
In France, the government aims to add 14 new reactors in what they call “the rebirth of France’s nuclear industry.”
In South Korea, leaders plan for six new nuclear plants by 2036.
In China, the government is planning to build 150 new reactors by 2037. That’s more than the rest of the world has built in the last 35 years. And India is planning to triple its nuclear power over the next decade.
The list goes on…
Nuclear Is the Future of Energy
Here’s the bottom line.
All these developments are in line with our investment thesis: global energy demand is fueling a nuclear energy renaissance.
To see why, look no further than projections of the world’s electricity demand.
As you can see in the chart below, demand is set to grow by 88% from 2022 to 2025. That’s in just three years…
What’s more, two major sources of electricity generation are fossil fuels and nuclear energy.
Here’s what that means…
Without nuclear energy, the power required to meet this demand would have to be generated by fossil fuels. This increases carbon emissions and results in air pollution harmful for both people and the environment.
Take a look at Germany.
After Putin shut off the gas, Germans’ energy bills doubled. So this “Green” country has been turning on old coal plants that were scheduled for permanent closure.
Reports indicate that emissions from German coal-fired power plants are set to be responsible for a projected 26,000 deaths between 2022 and 2038.
And that’s exactly why various key economies are reversing their stance on nuclear power. They want to decarbonize and boost energy security, which becomes more important in the face of growing demand.
And nuclear is the way.
What This Means for Your Money
If you’ve been following my work, you know I spend a lot of time in Washington.
As an investigative financial journalist and former Wall Street insider, I learned that it pays to look closely at what the government is doing.
That’s because where government money goes… the markets follow.
Nuclear is a case in point.
And there are several ways to profit from the nuclear revival.
Investing in uranium is a great place to start.
As I wrote in a recent mailbag edition, uranium is the basic building block of nuclear energy.
And right now, thanks to the ongoing renaissance of nuclear energy globally, there is some major buzz in the uranium space.
Despite this (and the recent uptick), the price of uranium is still down. It’s trading around $53 per pound. That’s 62% below its high of $140 per pound in 2007.
We’re at the cusp of what looks to be a huge bull market in uranium. That’s why I’m putting it on your radar right now.
Plus, there’s a wild card in this whole situation…
Putin’s war in Ukraine poses a serious threat to uranium supply from Kazakhstan.
Kazakhstan is the world’s top uranium producer. If this supply is threatened, uranium prices would surge.
That’s because Kazakhstan is like the Saudi Arabia of uranium. It’s actually four times more dominant in uranium than Saudi Arabia is in oil. The Central Asian country produces around 45% of the world’s uranium.
With all that in mind, you can position yourself to benefit from the growing need for uranium worldwide. So consider investing in the Global X Uranium ETF (URA).
The exchange-traded fund (ETF) holds a basket of producers, physical holdings, and property developers. So, it gives you broad exposure to the sector.
And as an ETF, it carries less company-specific risk than investing in individual companies.
Regards,
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Nomi Prins
Editor, Inside Wall Street with Nomi Prins
P.S. The Global X Uranium ETF (URA) is a great place to start. But there’s an even bigger opportunity for those who have an appetite for higher-risk, higher-reward plays.
One company in America has the only federal license to produce small modular reactor (SMR) technology. And with support from both sides of Congress, it’s only bound to go up from here.
In fact, you can get into this firm with as little as $2 a share. The best part is, I’ve uncovered all the details about how to play this tiny firm in a video presentation I put together.
It involves a little-known asset class that’s better, cheaper, and faster than stocks. In fact, the world’s most successful investors love them – even demand them.
To find out more about how you can play America’s revival of nuclear energy, and how it can hand you as much as 20x your money in the long term, click here to watch my video.