Uranium Week: Ignore Spot Uranium

Weekly reports | 10:58

As the spot price of uranium falls due to buyers spooked by Fed policy, demand from utilities continues to drive futures prices higher.

-Global advantages of nuclear energy
-Uranium spot market impacted by the Fed
-Futures market demand is activated

By Greg Peel

Coinciding with the high prices of fossil fuels associated with the Russian-Ukrainian conflict and the urgency of finding a safe and resilient substitute for fossil energy, nuclear power appears to be on the verge of a potential renaissance on a global scale. , noted Citi in its recent Energetic transition report, especially in Europe.

Citi also suggests that nuclear is unlikely to be a quick fix given the long lead times, even in countries like the UK that have made nuclear options a high priority.

Even small-scale nuclear power seems a decade away from making a significant contribution to energy security. But sThis energy could potentially play a major role in shifting energy security and energy transition over the coming decades.

Nuclear technology is well suited for export, notes Citi, given its relative independence from domestic resources. However, the market will remain confined to the developed world in the 2030s given the high political, regulatory, economic and defense standards that importing countries will have to meet.

Citi goes on to observe:

Nuclear energy solves the intermittency problem posed by wind and solar generation and requires 31x less land than solar installations and 173x less than wind farms. In addition, nuclear power can be located much closer to end markets given its independence from natural resources and the transportability of nuclear fuel.

Compared to a capacity factor of over 90% – three times higher than renewables, with wind and solar capacity factors around 35% and 25% respectively – nuclear power is well suited to increase deployment renewable energy in environments where land or resources are limited.

Few in the market do not believe that nuclear power will be a necessary part of the global energy transition away from fossil fuels, and as such the longer-term outlook for the price of uranium remains firmly in the balance. rise.


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