Uranium ETF soars to 10-year high🚀

This is Nuclear Update. We monitor nuclear trends like a safety inspector – always vigilant (and occasionally geeking out).

This is what we got for you this week:

• Uranium ETF soars to 10-year high🚀

• European Utilities Cut Renewable Targets as Costs Mount⛰️

• Semiconductor Firm Cites Nuclear Energy as Key in Facility Location🔑

• Global SMR Projects Surge 65% ⚡

Uranium ETF soars to 10-year high🚀

Uranium-related exchange-traded funds (ETFs), like the Global X Uranium ETF and Sprott Uranium Miners ETF, have seen significant gains, with uranium prices reaching a 16-year high due to tight supplies and rising demand. The price of uranium recently doubled, peaking at $106.40 per pound. The market has been influenced by new U.S. legislation signed by President Biden, limiting Russian uranium imports and allocating $2.7 billion to boost domestic supplies. This comes as tech giants increasingly turn to nuclear energy to power data centers, aligning with sustainability goals.

European Utilities Cut Renewable Targets as Costs Mount⛰️

Several major European power companies are scaling back or reassessing their renewable energy targets due to high costs. Statkraft, EDP, and Ørsted are adjusting plans due to economic pressures such as high interest rates and rising project costs. Meanwhile, some companies like Enel and Iberdrola are shifting focus towards electricity grids and reducing investment in renewables. Challenges like financing difficulties and regulatory hurdles are impacting the pace of transition from fossil fuels to renewable energy. Despite these challenges, there is a strong political drive to expand renewable capacity, as highlighted by global commitments at the COP28 climate summit. Although the sector faces financial challenges now, industry leaders remain optimistic about future improvements.

Semiconductor Firm Cites Nuclear Energy as Key in Facility Location🔑

During a U.S. Senate Energy and Natural Resources Committee meeting, nuclear energy was discussed as crucial to meeting the increasing electricity demand driven by the rise of artificial intelligence and data centers. Micron Technology’s Scott Gatzemeier emphasized the proximity of a nuclear plant as a key factor in choosing a location for a new semiconductor facility in New York, highlighting the plant's direct connection to a reliable substation. Additionally, the importance of supporting advanced nuclear technology with initiatives like tax credits was advocated to help maintain nuclear energy as a stable and emissions-free power source.

Global SMR Projects Surge 65%⚡

The small nuclear reactor (SMR) project pipeline has grown by 65% over the past three years to reach 22 GW according to a new report from analytics firm Wood Mackenzie. Led primarily by five countries—Canada, South Korea, Poland, the UK, and the US—these projects account for 58% of the total pipeline. Notably, new partnerships and regulatory collaborations, such as the trilateral agreement between nuclear safety commissions of the US, UK, and Canada, are fostering a conducive environment for SMR development. This growth trajectory underscores a robust, albeit challenging, outlook for SMRs in the global nuclear market.

Nuclear Nuggets🧽

Rolls-Royce signs £15m deal  to test mini-nuclear reactors in Sheffield.

For the first time ever, the annual economic analysis (GenCost) published by Australia's national science agency, CSIRO, includes large-scale nuclear energy.

The central bank of Norway, Norges Bank, Invests $96 Million in Uranium mining company Uranium Energy Corp.

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.