Survey the commodity sector and things are looking beyond bleak.
Oil, coal, natural gas — all are seeing massively depressed prices that are crushing related stocks.
There isn’t much in the way of a light at the end of the tunnel for them, either.
ExxonMobil and Peabody Energy are now facing investor allegations, and government inquiries, into whether they failed to disclose company research into how climate change countermeasures would affect the corporations.
However, one commodity in particular is standing above the rest. Plus, it just got a major boost from one of the most powerful proponents possible.
This is coming after announcements of major international agreements, massive inflows of infrastructure spending, and widespread backing from environmental scientists.
Even one of the most celebrated government agencies of the modern era — NASA — has weighed in, favoring it not only as an integral part of greenhouse gas cuts, but also as a major public health solution.
What are we talking about? Nuclear power, and the uranium it depends on. Once a pariah amongst experts and politicians, it is now being embraced, putting us on the cusp of a nuclear renaissance.
Just check out this sampling of positive news. It is mind-boggling.
Health and Environment
Nuclear energy is far safer than any form of fossil fuel. Period.
Back in 2013, NASA published a report called, “Coal and Gas Are Far More Harmful Than Nuclear Power.”
Using U.S.A. and U.N. information, researchers reached some startling conclusions:
- Nuclear power prevented an average of over 1.8 million net deaths worldwide between 1971-2009.
- Nuclear power prevented an average of 64 gigatonnes of CO2-equivalent over the same time period.
The researchers then used projections that cover 2010 through 2050 from the UN International Atomic Energy Agency to determine:
- A full nuclear phase-out scenario leads to an average of 420,000-7 million deaths worldwide.
- Replacing nuclear energy with coal and gas results in an additional release of 80 to 240 gigatonnes of CO2-equivalent emissions.
- The extra emissions released from fossil fuels from ending nuclear energy generation would account for 16% to 48% of the emissions allowed to stay below conservative targets set by the international community.
The situation is akin to airplane crashes and car crashes. One gets all the headlines, while the other steadily kills far more people.
While people fret about potential nuclear accidents, they are being poisoned by the fallout from fossil fuel toxins and pollution.
Major U.S. Federal Government Support
As I’m sure we’re all aware by now, the Obama administration just killed the Keystone XL pipeline proposal.
What hasn’t seen anywhere near as much press is an accompanying announcement regarding the full weight of the Obama administration behind efforts to advance nuclear power research and construction.
Here are some key quotes from the White House press announcement:
“Nuclear power, which in 2014 generated about 60 percent of carbon-free electricity in the United States, continues to play a major role in efforts to reduce carbon emissions from the power sector.”
“The President’s FY 2016 Budget includes more than $900 million for the Department of Energy (DOE) to support the U.S. civilian nuclear energy sector by leading federal research, development, and demonstration efforts in nuclear energy technologies, ranging from power generation, safety, hybrid energy systems, and security technologies, among other things. DOE also supports the deployment of these technologies with $12.5 billion in remaining loan guarantee authority for advanced nuclear projects.”
“DOE is establishing the Gateway for Accelerated Innovation in Nuclear (GAIN) to provide the nuclear energy community with access to the technical, regulatory, and financial support necessary to move new or advanced nuclear reactor designs toward commercialization while ensuring the continued safe, reliable, and economic operation of the existing nuclear fleet.”
Also listed in the release are: a voucher program for small and start-up companies flooding into the nuclear technology sector, government/ industry workshops to advance nuclear tech, new DOE supplements to the $12.5 billion in existing loan guarantees, and a new working group to advance the agenda.
In short, while maintaining existing incentives for nuclear power, Obama is directing the DOE to double down and push nuclear technology into the 21st century.
Massive Investments
Then there are the international agreements Obama has made regarding nuclear power.
The biggest is a tentative agreement with China over greenhouse gas emissions. The United States agreed to emit between 26% to 28% less carbon dioxide than it did in 2005 by 2025.
China, for its part of the bargain, pledged to cap its rapidly growing carbon emissions and increase the share of non-fossil fuels to at least 20% of the country’s energy portfolio by 2030.
Our part of the bargain may not be easy, but China has it worse. It expects to continue growing at a rapid pace, and that requires a whole lot more electricity.
To stick to both commitments, China plans a massive expansion of nuclear power. China is planning 100 nuclear power plants with 28 under construction now.
A total of $2.4 trillion will be spent to increase nuclear power generation in China by 6,600%.
Head over to the second most populous nation, also in need of massive energy investment and expansion, and the story is the same.
India plans on going from 5,000 megawatts of nuclear energy now to 63,000 megawatts by 2030, with 30 nuclear plants in the works.
That requires a $182 billion expansion of its nuclear industry. Guess who was standing next to Prime Minister Modi for the announcement? President Obama himself.
Then there is Russia, which aims to boost the share of electricity it gets from nuclear power to 25% by 2030, up from 16% now.
Argentina just signed a $3 billion deal with Russia-based Rosatom for a sixth power plant and fuel. This comes after a similar construction deal with China in February.
Nigeria is in talks with Rosatom as well. As many as four nuclear power plants will be built at a cost of up to $20 billion to meet energy demands and end daily blackouts.
South Africa has an $83 billion deal with Rosatom on the books, too.
On a global scale 437 nuclear reactors are operational, with 65 under construction and 165 planned.
This puts the expansion of nuclear energy sources at 37.75%, right as large uranium supply deficits are appearing at current demand levels.
Make no mistake about it. This has all the makings of a new nuclear age.
And unlike any other energy commodity, uranium perfectly complements variable solar and wind power generation as a constant baseline power source.
Nick Hodge nailed it when he got the early jump on this trend, and has prepared a selection of some of the strongest uranium plays in the world.
All of them are Canadian too, so there is no geopolitical risk involved, unlike many other energy commodity companies.
Just one of them, a small company in Saskatchewan, is sitting on a deposit that is conservatively estimated to contain 16.77 times the electrical generation potential of the entire Bakken oil field.
To get the full grasp of the profit potential for early investors, check out Nick’s research by subscribing to Early Advantage.
