Chapter 3 : Themes in focus
Nuclear energy and uranium moving into the mainstream
Positive momentum for uranium over the long term
Author : Rohan Reddy
With aggressive timelines to reach net-zero carbon emissions and global energy consumption expected to increase by 50 % through 2050 , governments are exploring all options in the next generation of power production . 1
While much of the focus has been on renewables , like solar and wind , there may still be a critical role for nuclear energy in the global energy mix , given that it is clean , reliable , and yes , safe . Importantly , nuclear power is gradually shedding the stigma attached to it , helped by significant improvements in technology and safety measures . And as it gains broader acceptance , we believe
HOW CAN NUCLEAR COMBAT CLIMATE CHANGE gCO2 Equivalent Per kWh
1000
800
600
400
200
0
820
Biomass - co-firing
740
Coal
490
Natural Gas
230
Biomass
48
Solar PV - utility
41
Solar PV - roof nuclear energy is raising the investment profile of uranium , its key fuel input .
Key takeaways
1 . Nuclear power emits zero greenhouse gas emissions during operations , making it a viable energy option for net-zero climate ambitions .
2 . Nuclear production is more reliable than other renewables , and large population centres with rising energy needs , like China and India , are taking notice .
3 . With supply deficits expected to persist , leading indicators , like ETF flows , suggest that investor sentiment towards the uranium market is bullish .
38
Geothermal
27
Solar - concentrated
24
Hydropower
Nuclear
Wind offshore
Wind onshore
Source : World Nuclear . “ How Can Nuclear Combat Climate Change ” 2014 .
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Nuclear power can help achieve clean energy transition goals
Meeting the world ’ s growing power needs while simultaneously reducing carbon emissions presents difficult challenges for policymakers . Compounding the issue is finding ways to power the 55 % percent of the world ’ s population living in dense urban areas . 2
While proven renewables , like solar and wind , are becoming increasingly economical , their larger footprint , intermittent power production , and difficulty in rapidly scaling requires other clean solutions to diversify the world ’ s energy mix . Nuclear energy may be the solution , as a clean , high output , and reliable power source .
Similar to solar and wind , nuclear fission reactors produce no greenhouse gas emissions during operation . But even when accounting for total carbon emissions ( such as in the building of a nuclear power plant or solar panels ) they have lower carbon emissions than many other renewables .
Nuclear is also more dependable than many other power sources . Renewables like solar and wind depend on variable climate conditions to power their panels and turbines , and at many points through the day and year may not produce much energy at all .
The intermittent outages make it difficult for them to function as the sole provider of a nation ’ s power needs . Conversely , the US Energy Information Administration ( EIA ) reports that nuclear operates at full capacity 93.5 % of the
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