Sunday, September 13, 2015

Nuclear Power to show fast growth


A new report by the World Nuclear Association estimates global nuclear power generation capacity should grow by more than 45% over the next 20 years and a new pipeline of uranium mines will be needed after 2025.

The 40-year old association's bi-annual 2015 Nuclear Fuel report released on Thursday forecasts global nuclear capacity will grow to 552 gigawatts equivalent (GWe) by 2035 from 379 GWe or roughly 11% of world electricity supply at the moment.

The report states that until the Fukushima accident in Japan, the outlook for nuclear power around the world was improving, but despite the March 2011 disaster, "many countries are putting more emphasis on satisfying environmental and security of supply objectives in their energy strategies, which should favour increased nuclear power."

The price of uranium continues to creep up and is currently trading at $37 per pound. I still am long term bullish on this commodity. As long as there are no accidents than the continued build out of reactors in the emerging markets will lead to a supply deficit in the relative near future.

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