DOE's $3.4B Uranium Boost📈

This is Nuclear Update. We light up the nuclear industry for you – illuminating trends, breakthroughs, and policies with the brilliance of a reactor core.

This is what we got for you this week:

• DOE issues $3.4 billion RFP for uranium purchase🚀

• Japan Extends Ohi Nuclear Plant Operations by 10 Years↔

• India's nuclear capacity is expected to grow by 70% by 2029🌱

• Australian Hedge Fund Making 20% a Year For Last Decade Targets Uranium📈

DOE issues $3.4 billion RFP for uranium purchase🚀

The US Department of Energy (DOE) has issued a $3.4 billion Request for Proposals (RFP) for the purchase of Low-enriched Uranium (LEU) for the 94 US nuclear reactors. This RFP results from three legislative actions: the Nuclear Fuel Security Act of 2023, the Consolidated Appropriations Act, 2024, and the Prohibiting Russian Uranium Imports Act, 2024. The goal is to secure a domestic supply of LEU, HALEU, and yellowcake U3O8, ensuring a backup supply during market disruptions. The RFP seeks 10-year contracts with suppliers using US or allied-mined uranium , enriched and converted in the US or allied nations (USA, Canada, EU and Australia). This initiative aims to reduce dependency on Russian uranium imports, which are banned from 2028 until 2040 (no waivers will be issued), and to bolster US nuclear fuel security.

Japan Extends Ohi Nuclear Plant Operations by 10 Years↔

Japan’s Nuclear Regulation Authority (NRA) has approved 10-year operational extensions for Units 3 and 4 at Kansai Electric Power’s Ohi nuclear station, extending their operations to over 40 years. This is the first approval under the green transformation law, effective June 2025, which excludes offline inspection periods from reactor service life, potentially extending operations beyond 60 years. Ohi-3, operational since 1991, can now run until December 2031, and Ohi-4, since 1993, until February 2033. Post-Fukushima, 12 of Japan's 33 operable reactors have resumed operations, generating about 6.1% of the country’s electricity in 2022 and 81 TWh in 2023.

India's nuclear capacity is expected to grow by 70% by 2029🌱

India plans to increase its nuclear power capacity by 70% over the next five years, Union Minister Jitendra Singh announced on Tuesday. The current capacity of 7.48 gigawatts (GWe) will rise to 13.08 GWe by 2029 with the addition of seven new reactors. Singh emphasized the economic and societal benefits of radiation technology, promoting ease of living, and boosting research in various scientific fields. He highlighted the government's focus on indigenous technology development and energy security, alongside health, food security, radiopharmaceuticals, and nuclear medicine. Efforts are being made to simplify research processes and scale up nuclear technology applications for citizens' benefit.

Australian Hedge Fund Making 20% a Year For Last Decade Targets Uranium📈

Melbourne-based L1 Capital’s Long Short Fund has achieved 20% annual returns since inception, making it the top-performing Australia-based strategy over the past decade. The fund is increasingly focused on uranium, identifying strategic opportunities in the sector. Despite recent stock fluctuations in key uranium producers, L1 Capital remains optimistic about the long-term potential of uranium. Global interest in uranium is rising due to the carbon-free appeal of nuclear power amid climate concerns. Founded by Raphael Lamm and Mark Landau, L1 Capital manages A$7.5 billion across various funds. The surge in uranium prices, up 233% in five years, underscores the growing demand. L1 Capital has shifted some focus from copper to uranium, anticipating a significant supply-demand gap by the 2030s.

Nuclear Nuggets🧽

Sweden-based small modular reactor company has announced a new candidate site to host up to six reactors, the first of which could deliver electricity in the first half of the 2030s.

“If we don’t build 100 reactors, we won’t make a significant contribution to climate,” says Bill Gates on Zero Podcast, that explores the policies and tactics to take us to a future of zero emissions.

Lawmakers in California have approved a $400m (€374m) loan to keep the two-unit Diablo Canyon nuclear power station operating until 2030 after initially expressing concerns over the cost to the taxpayer.

Meme of the week🤣

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.