Uranium poised to profit from Nuclear Revival
Email this article By Leia Michele Toovey- Exclusive to Uranium Investing News
Last week, I attended a seminar sponsored by Windward Global, with keynote speaker Darren Gale, vice president, Nuclear Services Babcock & Wilcox Nuclear Power Generation. Babcock & Wilcox’s Nuclear Power Generation division is responsible for the designing, manufacturing and delivering components for Department of Energy Programs.
The message Gale gave was clear. The world needs power. The US Department of Energy forecasts that the United States will need 28 per cent more electricity by 2035. Overall, world energy demand is expected to increase by more than 50 per cent by 2030. How will we be able to meet this demand? Currently, in the US, coal produces 48.5 per cent of US electricity; natural gas 21.3 per cent; and nuclear 19.6 per cent. The rest comes from hydroelectric dams and small amounts of renewable energy.
Across the globe governments are re-evaluating their energy portfolio. Green energy sources are increasingly important as federal, state and local policymakers consider energy supply and greenhouse gas mitigation. Climate change legislation dominated Capitol Hill during the months preceding the United Nations Climate Change Conference in Copenhagen, Denmark. The House and the Senate are working on bills to reduce greenhouse gas emissions, with both chambers recognizing the importance of utilizing nuclear energy to achieve that goal.
When it comes to green energy- nuclear energy stands out in the pack. Nuclear energy is the only carbon free energy solution that does not depend on wind, sun and water. Nuclear energy provides electricity production constantly, 24 hours a day, seven days a week, regardless of weather conditions.
An International Energy Agency (IEA) analysis found that nuclear power’s life-cycle emissions range from 2 to 59 gram-equivalents of carbon dioxide per kilowatt-hour. Only hydropower’s range ranked lower, at 2 to 48 grams of carbon dioxide-equivalents per kilowatt-hour.
Nuclear energy’s life-cycle greenhouse gas emissions are lower than wind (7 to 124 grams of carbon dioxide-equivalents) and solar photovoltaic (13 to 731 grams of carbon dioxide-equivalents). The life-cycle emissions from natural gas-fired plants ranged from 389 to 511 grams of carbon dioxide-equivalents per kilowatt-hour.
Green energy is getting more than just lip service. Two major analyses issued in 2009 of the House version of the bill (H R 2454) make the case that significant nuclear energy provisions are necessary to achieve US greenhouse gas emission reduction goals. The Energy Information Administration issued “Energy Market and Economic Impacts of H R 2454, the American Clean Energy and Security Act of2009.” The Environmental Protection Agency released the “EPA Analysis of the American Clean Energy and Security Act of 2009 (H R 2454).”
President Obama’s proposed budget includes US$ 108 million in new funding to advance and expand green energy. Obama’s fiscal 2011 budget is seeking nearly a 200 per cent increase in nuclear funding.
The push for green energy is driving nuclear energy into the spotlight. Besides being green, nuclear energy has other benefits. It’s economical to produce. As the price of oil and natural gas continue to skyrocket, nuclear energy production costs remain steady and well below that of electricity produced from gas, petroleum and coal.
Nuclear energy is dependent on uranium; the uranium fuel for US nuclear plants is abundant and readily available from stable allies, such as Canada and Australia- no offense crude oil. The long-term stability of fuel cost, coupled with industry success over the past 15 years in reducing operating costs, makes America’s 104 nuclear reactors one of the best sources of available electricity.
On the back of the recession there is a focus on scientific advancement, new technology- coupled with an attitude of urgency. Uranium is poised to benefit from the “Green Energy Revolution.” According to the World Nuclear Association, across the world there are 436 operating nuclear reactors, 45 under construction, 131 on order or planned, and 278 proposed for generating electricity.
In the last fifty years, uranium has become one of the world’s most important energy minerals. There are many uranium mines operating around the world, in some twenty countries, though more than two thirds of world production comes from just ten mines. Energy has always been a smart investment, and with the push for nuclear power- uranium may just be one of the major players in the next bull-run.
Tags: investing in energy, investing in uranium, junior uranium miners, nuclear, nuclear energy, nuclear power, Uranium, uranium miners, uranium mining, Uranium Stocks, world energy
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February 8th, 2010 at 9:37 am
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