Nuclear Reactors 1060 - The Global Price Of Uranium Is Rising - Part 1 of 2 Parts

Nuclear Reactors 1060 - The Global Price Of Uranium Is Rising - Part 1 of 2 Parts

Part 1 of 2 Parts
     The global price of uranium has risen to its highest level since the Russian invasion of Ukraine caused severe turbulence to the commodities market. The European energy crisis has caused the global energy industry to warm up to nuclear power.
     Yellow cake is uranium that has been processed from raw ore containing many minerals to a powder of raw uranium. The price of yellow cake has jumped seven percent since the middle of August to pass fifty dollars a pound. This price was last seen when many commodities were driven higher by concern over the supply chain last spring. Many market participants expect uranium to continue to rise even further. The Bank of America predicts that the price of yellow cake will reach as high as seventy dollars per pound next year.
     Looking back before the sharp spike in prices triggered by the war in Ukraine, the last time uranium was trading at similar levels was over ten years ago. This historical price information was provided by UxC, a nuclear fuel market research and analysis company.
     Uranium prices have been lifted in recent weeks by positive news about nuclear power. Utility companies are moving to increase supplies against a backdrop of the worsening energy shortfall in Europe. There has also been improving public sentiment towards nuclear power in other regions of the globe.
     Late last month, the Japanese government announced its plans to accelerate the restart of reactors and export the construction of new nuclear power plants for the first time since the nuclear disaster at Fukushima in 2011. California decided last week to extend the life of its Diablo Canyon nuclear power plant which is the last operating nuclear plant in California. A few days later, Germany put its last nuclear power plants on standby so that they can keep running if needed beyond the end of this year.
     Per Jander is the director of nuclear and renewable energy sources at WMC Energy which is a commodities merchant. He said, “Germany and California have been two of the most negative jurisdictions in the world on nuclear power and both of them are coming around. I would say hell would freeze over before that would happen. It will have an immediate impact on the market.”
      The price of uranium rose sharply last year. It was up over thirty percent as investors wagered on nuclear energy becoming a central feature of the global shift away from fossil fuels and towards greater electrification of the would economy. Nuclear power plants do not emit carbon dioxide during normal operation. Nuclear energy is said to generate consistent baseload power without producing carbon emissions. The European Union classified it as a green energy source earlier this year. Of course, constructing a nuclear power plant and dealing with the nuclear fuel cycle do release a great deal of carbon dioxide. A new nuclear power plant will require years of operation to make up for this carbon dioxide release. The levelized cost of nuclear power is much greater than that of renewable energy sources.
Please read Part 2 next