The Fuel Powering the Nuclear Renaissance

“History is written by victors.” — Attributed to Winston Churchill

Dear Outsider,

The blockbuster hit Oppenheimer has a lot of people thinking about all things nuclear these days.

Nuclear power was originally conceived to create energy.

It’s unfortunate that it intersected with a tumultuous and violent time that led to even more death and destruction.

But recent events have brought nuclear power back to the forefront of the alternative energy conversation.

Other factors like the pandemic, geopolitical uncertainty, and rising fuel prices also have people wondering...

Is nuclear power the saving grace we need to lower energy costs and power our world for the foreseeable future?

We’ve heard countless times that nuclear energy is dirty, harmful, and not environmentally friendly.

That hasn’t stopped investors from piling into everything from uranium miners to power plants.

Now, it’s no secret that energy stocks have absolutely destroyed the market since COVID hit.

The S&P 500 Energy ETF has shot up a whopping 167% since 2021.That’s due in part to rising energy costs and increased demand.

Suffice it to say, energy is where the money’s being made right now.

And it’s not slowing down anytime soon.

Household energy demand is set to rise 20% in 30 years’ time. And with the industrial sector accounting for roughly one-third of energy consumption, we need all sorts of power, big and small.

Look, whether we like it or not, the U.S. is turning away from fossil fuels like oil and gas.

From day one, the Biden administration has waged a war on drilling, which led to a tightening of oil supply, which in turn raised prices — and we’ve got to get used to this new reality unless we drill our massive oil reserves, which seems unlikely anytime soon.

Even so, energy investors have done well while getting killed at the pump.

Also, by now we’ve tried renewables like wind and solar, but they haven’t performed as advertised.

They’re expensive, slow, and inefficient.

That’s where nuclear power comes into play.

It has the potential to solve all the aforementioned problems with our current energy crisis.

We can see the demand increasing by following the money.

Navigating the Atomic Opportunity

One area of investment is uranium and uranium miners.

This is because the nuclear industry, once viewed with skepticism, is experiencing a revival as governments and industries seek to reduce carbon emissions.

Now, the uranium market has experienced volatility over the years, especially after the 2011 Fukushima nuclear disaster, when uranium prices plummeted due to safety concerns and reactor shutdowns.

However, prices have stabilized and are making a move to the upside. According to The Conversation, “The primary fuel for nuclear plants was sliding for much of the 2010s, with no signs of a major turnaround. Yet since mid-August, prices have surged by around 60% as investors and speculators scramble to snap up the commodity.”

Now, remember, uranium is an element that must be mined. Only after it’s enriched does it become uranium-235, which is used in the nuclear reactor in the form of pellets. Using fusion, the uranium heats up and releases vast amounts of energy.

One positive here is that this process does not produce greenhouse gas emissions during electricity generation, making it an attractive option for governments and regulators seeking to reduce carbon footprints.

It only makes sense that as more countries invest in nuclear technology, the demand for uranium is expected to rise.

According to World Nuclear News, a recent edition of the World Nuclear Association's Nuclear Fuel Report stated that nuclear is on a path to positive long-term growth.

This bodes well for investors in the technology — if they believe its use should be expanded...

Nuclear Stocks

Here are three popular nuclear energy plays that you can buy on the U.S. market today:

The pick-and-shovel play of the bunch is Cameco Corp. (NYSE: CCJ), which is predominantly involved in the uranium mining and nuclear fuel services industry. It plays a crucial role in the supply chain for nuclear power generation, offering a variety of services related to uranium processing and fuel manufacturing, while also contributing to the global nuclear energy sector's sustainability and growth. It’s one of the largest uranium producers in the world, mining millions of pounds of high-grade uranium. It pays a small 0.24% dividend.

Constellation Energy (NASDAQ: CEG) is the largest nuclear power provider in the U.S., producing more carbon-free energy than its peers. Constellation owns and operates a diverse portfolio of power plants, including natural gas, nuclear, and other renewable energy facilities, generating electricity for residential, commercial, and industrial customers. The company is actively involved in renewable energy generation, offering options for customers to purchase electricity from renewable sources like wind and solar, and it also provides renewable energy certificates (RECs) to help businesses meet sustainability goals. It pays a 1.03% dividend.

Dominion Energy (NYSE: D) generates, transmits, and distributes electricity and natural gas. It operates power generation facilities in the U.S., making electricity using natural gas, coal, nuclear, and renewable energy sources like wind and solar. The company reportedly uses earnings from the non-renewables and invests in renewables. A stalwart in the industry, Dominion pays a solid 5.8% dividend.

As good as these companies are, they’ll soon be buying a new, more efficient kind of fuel for the reactors.

Why?

Because one company has developed a breakthrough fuel that enhances the performance and safety of nuclear reactors.

This new generation of fuel is set to snag market share, with nearly $2 trillion expected to flood in.

And it doesn’t stop at nuclear reactors.

A stack of this fuel could power your home for LIFE!

It could generate power for the cars of the future...

And run entire gigafactories and fuel-chugging steel plants all on its own.

Oppenheimer’s got nothing on this...

Stay frosty,

Alexander Boulden
Editor, Outsider Club

After Alexander’s passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing. Check out his editor's page here.

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