Money Pours into Nuclear: Major Investments and Acquisitions💵

Welcome to Nuclear Update, where our nuclear updates are as vital as a coolant in a reactor – essential for staying informed and cool under pressure.

This is what we got for you this week:

• South Korea to Invest $1.13 Billion in SMR and Hydrogen Industry Hubs💵

• US DOE to Invest $900 Million in SMR Technology💲

• Framatome Secures €10 Million for Reactor Fuel Project💰

• Paladin Energy's $1.25 Billion Acquisition of Fission Uranium Signals M&A Surge🛒

South Korea to Invest $1.13 Billion in SMR and Hydrogen Industry Hubs💵

South Korea’s President Yoon Suk Yeol, plans to establish a small modular reactor (SMR) industrial hub in Gyeongju, as part of broader efforts to innovate and diversify the region's industrial base. This initiative aims to transform Gyeongju into a high-tech manufacturing hub in Northeast Asia. The government will invest USD216 million in the SMR complex and create an USD57 million fund to support the nuclear power sector.

Additionally, Yoon confirmed the continuation of constructing units 3 and 4 of the Shin Hanul nuclear power plant, previously halted in 2017. Plans are also underway to develop a USD570 million hydrogen industry hub along the east coast, connecting Pohang and Uljin, to bolster hydrogen fuel cell production. The Uljin Nuclear Hydrogen National Industrial Complex, a USD288 million project started in 2022, aims to support South Korea's carbon neutrality goals by 2050.

US DOE to Invest $900 Million in SMR Technology💲

The U.S. Department of Energy (DOE) plans to invest $900 million to support the deployment of SMR technology, funded by President Biden’s infrastructure law. This investment aims to accelerate advanced nuclear projects to meet the goal of net-zero emissions by 2050, requiring up to 950 gigawatts of clean energy. Currently, nuclear power generates 18.6% of U.S. electricity. The DOE emphasizes nuclear power's role in meeting rising energy demands, including those from AI and data centers, while creating high-paying jobs. Energy Secretary Jennifer Granholm and National Climate Advisor Ali Zaidi support this initiative to scale up nuclear power and enhance American leadership in energy. The funding will be offered in two tiers: $800 million for first-mover teams and $100 million for fast follower deployment. Funding proposals are expected to be sought by late summer or fall.

Framatome Secures €10 Million for Reactor Fuel Project💰

Framatome, the French multinational company specializing in the design, manufacture, and servicing of nuclear power plant equipment and reactors, has secured EU funding to develop a fully European fuel for VVER reactors. Under the Euratom Research and Training Programme, the "SAVE" project for VVER 440 fuel will receive EUR 10 million. Framatome’s SVP Lionel Gaiffe highlighted the project's goal to diversify and secure fuel supply with a fully European design, manufacturing, and supply chain. The push for a sovereign European fuel solution aims to mitigate disruptions and reduce dependency on non-European imports. Currently, 19 VVER reactors operate in Europe, with significant installations in Bulgaria, the Czech Republic, Finland, Hungary, and Slovakia.

Paladin Energy's $1.25 Billion Acquisition of Fission Uranium Signals M&A Surge🛒

The Australian-based uranium mining company, Paladin Energy, has announced its acquisition of Canada’s Fission Uranium for $1.25 billion. Paladin will buy 100% of Fission shares at C$1.30 ($1.43) each. Post-acquisition, Fission shareholders will own 24% of Paladin, which will have a market capitalization of approximately US$3.5 billion ($5.27 billion), with Paladin shareholders owning 76%. The acquisition aims to create a "clean energy leader" with a robust project development pipeline, multi-asset production expected by 2029, and operations across Canada, Namibia, and Australia. The deal, pending a 66% approval from Fission shareholders, includes a listing of Paladin shares on the Toronto Stock Exchange. Paladin CEO Ian Purdy stated that the merger would enhance international market exposure and de-risk the development of Fission's Patterson Lake South (PLS) project by providing necessary investment for its progression towards production.

Nuclear Nuggets🧽

Australia’s opposition leader Peter Dutton announced plans to build Australia’s first nuclear power plants by 2035, arguing the government’s policies for decarbonizing the economy with renewable energy sources including solar, wind turbines and green hydrogen would not work.

The CANDU MONARK project in Ontario is set to deliver substantial economic benefits to Canada. For every dollar spent, GDP will increase by $0.97, with the project expected to contribute $90.4 billion to GDP and $29.1 billion in tax revenues over its 88-year lifespan.

Big technology companies including Microsoft Corp. and Google are eager to see more nuclear energy feeding their power-hungry data centers but are far less willing to provide the capital needed to pay for a growing interest in reactors.

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.