It is alright to talk Uranium but who is going to convert it and...

It is alright to talk Uranium but who is going to convert it and enrich it?

https://www.nei.org/news/2023/taking-the-investment-pulse-q2-2023

Taking the Investment Pulse: Q2 2023
By now, you’ve likely heard about—or experienced firsthand—the record-shattering heatwaves that have taken hold of power grids across the nation and the world. The rising pressure on these systems has exposed a perennial problem: grid reliability.  
Nuclear energy’s unrivaled ability to consistently produce maximum power makes it an invaluable asset to both utility companies and millions of Americans. It’s one of the many drivers behind increasing demand for new nuclear—nations, states, and communities are all looking to address both net-zero goals and very real energy security concerns.
McKinsey & Company and the Department of Energy are both predicting an increased role for nuclear in the energy transition, and it hasn’t gone unnoticed by the financial community.
Trends

Conversations around nuclear’s foundational role in the global energy transition dominated the first quarter of the year. Those conversations have continued into the second quarter, with some new angles taking center stage:
Uranium: The mineral critical to fueling most future and existing reactors has been experiencing a bull market, thereby garnering attention from Wall Street and retail investors alike.  

• How Uranium Can Be a Shelter From Economic Meltdown (Wall Street Journal)
• Uranium is having a ‘renaissance.’ What to know about it, and how to play it (CNBC)
• The commodity opportunity you may have overlooked... but should not ignore (livewire)
• Are Uranium Prices About to Go Nuclear? (Investing.com)
• Bank of America says there’s a bull market underway in uranium and names an ETF to play it (CNBC)
• Bullish on nuclear? This global stock with 55% upside offers uranium price exposure, BoA says (CNBC)
• Major fundie Tribeca says the green shift will be bigger for mining than China boom (*)

ESG/Sustainability: Environmental, social, governance (ESG) investing has been a buzz word on Wall Street and Capitol Hill for a while now—recently, nuclear has once again been making the rounds in debates on sustainable investing.

• Major banks yet to match EU with nuclear green label, study says (Reuters)
• Parnassus Removes Investment Screen for Nuclear Power (GreenMoney Journal)
• EU Nations Back Renewable Deal as France Wins Nuclear Assurances (Bloomberg)
• A Critical Disconnect: Relying on Nuclear Energy in Decarbonization Models While Excluding It from Climate Finance Taxonomies (Columbia University Center on Global Energy Policy)

Emerging Market: Increasingly, the financial community is targeting advanced nuclear—small modular reactors in particular—as an emerging market warranting attention. That’s not surprising when you consider the vast customer space for advanced reactors; from large industrial companies to Silicon Valley tech firms, nuclear offers an exciting possibility for the future.   

• World Economic Forum Announces 100 New Start-ups Joining its Technology Pioneers Community
• 10 Emerging Technology Investments for 2023 – #10: Nuclear Fission To-Go (Morningstar)
• Nuclear energy startups are starting to stack some cash (Axios)

Announcements

Steering some of the trending conversations has been announcements from nuclear developers, governments, utility companies and customers.  
U.S. Developments: American companies continue to drive the innovation that makes the nuclear industry stand out.

• Governor Ivey Announces Ultra Safe Nuclear Corp. Plans $232 Million Micro-Reactor Assembly Plant in Gadsden, Creating 250 Jobs
• NuScale Power Enhances Case for Small Modular Reactor Applications in Major Industrial Processes with New Steam Production Estimates
• Constellation Expands Nuclear Fleet With $1.75 Billion Deal (Bloomberg)
• NuScale Power and Nucor Corporation Sign Memorandum of Understanding to Explore Deployment of Small Modular Nuclear Reactors to Power Nucor Electric Arc Furnace Steel Mills  
• Dow’s Seadrift, Texas location selected for X-energy advanced SMR nuclear project to deliver safe, reliable, zero carbon emissions power and steam production
• Westinghouse Unveils Game-Changing AP300™ Small Modular Reactor for Mid-Sized Nuclear Technology
• TVA outlines nuclear plans, says solar projects in trouble (E&E News)
• This Former SpaceX Engineer Just Raised $40 Million To Build Portable Nuclear Reactors (Forbes)

International Developments: Nuclear energy is a global climate and energy security solution, and it has the deals to prove it.  

• Westinghouse Signs Key Contract for AP1000® Reactor with Bulgaria’s Kozloduy NPP-Newbuild to Support Bulgaria’s Energy Future
• Japan's Onomichi Dockyard leads $80m bet on floating nuclear plants (Nikkei)
• Biden Administration Announces Global Public-Private Commitment Up to $275 Million to Advance NuScale VOYGR Deployment in Romania at G7 Leaders Summit
• Ultra Safe Nuclear Corporation, Hyundai Engineering, & SK ecoplant Sign MOU for Clean Hydrogen Production

Commentary

Much like our last investment update, there continues to be insights from global consultancy firms and investment shops that showcase the excitement around nuclear energy.  

• Nuclear Energy: Bringing Science Fiction to Life (VanEck)
• The nuclear option: Making new nuclear power viable in the energy transition (Wood Mackenzie)
• Yes, nuclear can help answer the climate and energy security challenge (McKinsey)

Climate and energy security needs are driving the growing consensus around clean, reliable nuclear. Investors and customers are jumping in because they know those concerns are never going away. As we turn demand into new builds, the world will be looking to the financial community to help secure an affordable, net-zero future.
Tune in next quarter for another update. It’s sure to be an interesting one—Oklo recently announced plans to go public through Sam Altman’s SPAC.