5 Things That Say the Nuclear Renaissance Is Here

The nuclear energy industry saw significant policy wins and momentum shifts in 2022 that validate nuclear as a critical tool for decarbonisation and energy security. As we enter 2023, the nuclear renaissance is poised to accelerate with new reactor deployments, workforce development, increased financing, and global leadership from the United States.

New Reactors Coming Online

Around the world, nations are committing to new nuclear builds to meet electricity demand and decarbonisation goals. In the US alone, utilities foresee a need for over 90GW of new nuclear capacity from small modular reactors (SMRs) to replace retiring fossil fuel plants.

The industry is working to deploy advanced reactor technologies, including in communities with infrastructure and workforces from retiring coal plants. In Georgia, Vogtle Unit 3 is on track to start operations in early 2023, delivering clean electricity to over 2 million customers. Once all four Vogtle units are online, they will power over 1 million homes and businesses.

Building the Talent Pipeline

With the rising demand for nuclear energy comes an increased need for specialised expertise and engineering talent. Academic programs, apprenticeships, and retraining initiatives are preparing the next-generation nuclear workforce. A just transition will provide these high-paying, stable jobs in underserved communities while leveraging fossil fuel workers’ skills. Expanding clean energy programs in 2023 will develop the talent pipeline nuclear needs as it displaces fossil fuels.

Surging Investor Interest

Major financial institutions now recognise nuclear power’s growth potential. Notable examples include Brookfield's bullish white paper on nuclear's "new dawn" and NuScale becoming the first publicly traded SMR firm. Other nuclear companies like Westinghouse, TerraPower, and X-energy have secured multi-billion dollar investments and partnerships, signalling the promise institutional investors see in advanced nuclear. This aligns with firms’ net-zero commitments under the UN’s 24/7 Carbon-Free Energy pact.

Public uranium companies must adapt to this changing investment landscape by clearly communicating their role in the nuclear fuel cycle. As demand for uranium rises, these firms need strategies to lock in long-term supply contracts. They also must showcase their ESG credentials to attract investors focused on sustainability.

Leveraging New Public Funding

The Inflation Reduction Act contains unprecedented tax credits, loan guarantees, and funding to bolster nuclear power. This includes support for existing plants, new advanced reactors, fuel production, hydrogen generation, and more. In 2023, the industry will maximise these incentives to preserve today’s fleet while building the technologies to decarbonise electricity, industry, agriculture and more. Robust appropriations are still needed to expand the domestic fuel supply, which will be a priority this year.

Exporting US Nuclear Leadership

Global events have accelerated interest in US-designed reactors abroad. In 2023, we expect more partnerships between US firms and nations in Europe, Asia and beyond to deploy US reactor designs. With the right government support, these exports can make America the partner of choice on nuclear innovation. This will kickstart carbon reduction worldwide while creating thousands of high-quality domestic jobs and strengthening key international alliances.

Companies to Watch

Energy Fuels‍

Energy Fuels is the largest uranium and advanced rare earth element producer in the United States. The company has significant uranium production capacity and long-term sales contracts with U.S. nuclear utilities that it expects to fulfil starting in 2023-2024. Energy Fuels is also quickly moving to establish a domestic rare earth element supply chain, with plans to produce high-value separated REE oxides by late 2023 or early 2024. The company additionally produces vanadium when conditions warrant, recycles materials to recover uranium, vanadium and medical isotopes, and is advancing capabilities for medical isotope production. Overall, Energy Fuels is a major U.S. producer of strategic minerals like uranium and rare earth elements that are critical for energy, technology, and medical applications.

Ur-Energy‍

‍Ur-Energy is a U.S. uranium mining company well positioned to benefit from rising uranium prices driven by growing demand for nuclear power. With in-situ recovery operations in Wyoming, Ur-Energy has been producing from its Lost Creek facility since 2013 and can now effectively double licensed annual production capacity to 2 million pounds with its permitted Shirley Basin project. With over $70 million in cash, Ur-Energy is funded to ramp up low-cost production from its Wyoming hub as it restarts wellfield construction. The company utilises mining methods with a light environmental footprint and is advancing next generation technologies to further reduce costs. If uranium prices continue strengthening, Ur-Energy offers leverage as an experienced producer with scalable, permitted projects in a rising uranium market.

Denison Mines

Denison is a uranium exploration and development company focused on the Athabasca Basin region of northern Saskatchewan, Canada. The company has a 95% interest in the Wheeler River project, the largest undeveloped uranium deposit in the eastern Athabasca Basin. Denison also has minority ownership interests in several other uranium deposits and operations in the region, including McClean Lake (22.5%), Midwest Main/Midwest A (25.17%), and Waterbury Lake - THT/Huskie (67.41%). Additionally, Denison provides post-closure mine care and maintenance services through its Closed Mines group, which manages reclaimed mine sites in Elliot Lake and provides related services. The company's portfolio covers around 300,000 hectares in the Athabasca Basin.