As more economies and countries execute the transition into the use of clean energy, some investors are looking to uranium as an alternative source of electricity, with many skeptical that weather will be able to meet global electricity needs.
Prices of shares in uranium mining companies have been surging, despite the presence of weather dependent solar and wind industries. Even as many companies work to meet the net-zero emissions targets, some investors are pouring money into companies with uranium mining interests because they believe nuclear power is the only way to meet these targets. This is because nuclear is one of the lowest carbon sources of energy as it releases no greenhouse gases. Uranium is the most commonly used fuel in nuclear plants.
Sprott, a global investment manager that specializes in precious minerals, has developed a fund that owns physical uranium on the outlook for demand of uranium, as it’s a clean energy source that’s not only dependent on the weather but is also nonintermittent. Investors expect that nuclear energy will play a huge role in the transition from the use of fossil fuels to the attainment of zero emission targets.
Presently, uranium’s spot price remains unchanged with the metal’s stocks expected to rise on expectations of a possible inflection point in about three years when the metal’s demand may surpass supply. Many hypothesize that this will be because of the increase in China’s nuclear capacity by the year 2025, among other reasons.
At the moment, solar and wind electricity makes up roughly 7% of global electricity generation with electric cars equating to less than 1% of the vehicles on the road.
A report by Reuters shows that the majority of the world seems not to have accepted the idea that green energy is a good solution for electricity generation, despite the diminishing costs of weather dependent solar and wind energy.
On a global scale, the ability of nuclear to provide uninterruptable and continuous zero-emission electricity coupled with its safety record, make it the first choice of most investors. This has been further cemented by the announcement of the first natrium reactor project by PacifiCorp and TerraPower LLC, which is owned by Bill Gates.
In addition to this, the offenses to humanity and environmental degradation that occur in order for companies to obtain green metals and minerals needed for the renewable energy transition and the huge land requirements for weather-dependent solar and wind energy also make the generation of electricity from zero-emission nuclear a much better option.
Uranium extraction companies such as Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) could therefore see heightened investor interest in their stocks over the coming years and decades as the world goes green.
NOTE TO INVESTORS: The latest news and updates relating to Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) are available in the company’s newsroom at http://ibn.fm/UUUU
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