Vancouver, BC –News Direct– MarketJar
Worldwide efforts to achieve net-zero goals are ongoing, and many nations are beginning to recognize the critical role nuclear energy plays in this race. One of the cleanest forms of power generation is nuclear energy because it doesn’t cause carbon emissions or climate change. In fact, the International Energy Agency estimates that the nuclear sector will need to double in size over the next two decades in order to achieve the global net-zero emissions goals (IEA). In fact, the demand for new, optimized nuclear reactors will require more than $1 trillion in global investment.
Add to that the energy crisis taking place in Europe and it’s easy to see why interest in uranium is gaining momentum. Several countries are already making changes to their nuclear energy policies to extend the life of power plants, creating a potential boom for the uranium market.
The US government approved a $700 million package to support its nuclear energy industry, while several European countries have announced plans to extend the life of power plants and expand fleets. At the same time, Japanese support for a nuclear restart is now over 60%, the highest it’s been since the 2011 Fukushima incident.
The nuclear resurgence is great news for the uranium market, which is finally pulling out of a 10-year downturn that led to mine shutdowns, delays in development projects and bankruptcy for many exploration companies. A significant decline in current global stockpiles, lack of production in the near future, and the possibility of a supply shortage means utility companies around the world are scrambling to secure supply to meet their energy goals. This scramble has been all the more intense because financial players have been aggressively acquiring the bulk of product available on the spot market.
Uranium prices are now rising and some mine restarts have been announced to meet demand but new production will be needed to cover the steady, long term…