The nuclear industry in the US considers 2022 an “inflection point,” with surging private investment and unprecedented government support reviving a sector that had fallen out of favor in recent decades.
According to industry estimates, new federal legislation enacted in the last 18 months will pump about $40 billion into the sector over the next decade, while roughly $5 billion in private funds has flowed into companies designing new types of reactors in the last year alone.
The infusion of funds comes as nuclear power, which has long suffered from investor apprehension over costs and negative public sentiment, has re-emerged as a critical component in the fight against climate change.
Nuclear power can provide a baseload of carbon-free power at scale 24 hours a day, seven days a week, regardless of weather, making it far more reliable than intermittent renewable sources like wind and solar.
The US currently has the world’s largest nuclear fleet, with 93 reactors in operation. That fleet provides roughly 20% of America’s energy and is responsible for generating half of the country’s carbon-free power.
In August, Congress passed the Inflation Reduction Act (IRA), which has the potential to stimulate significant investment in the nuclear industry. The IRA contains several key provisions reinforcing a wide range of new and existing nuclear industry activities. It also provides numerous technology-neutral credits aimed at low- or zero-carbon energy sources, including nuclear, in addition to new production tax credits for existing nuclear plants (which will strengthen the economic case for license renewals and continued operation of those facilities).
Private funds are also pouring into the sector rapidly as companies seek to develop new types of reactors that are more agile, smaller, cheaper, and safer than traditional large-scale nuclear.
Japan and the US recently announced that they intend to collaborate on designing and constructing next-generation advanced reactors, such as small modular reactors.
Canada has also launched a nuclear project that includes C$970 million ($708 million) in funding to develop a commercial grid-scale small modular reactor (SMR), a new nuclear technology that is a key part of its plans to reduce emissions.
Nuclear energy has something for everyone and is popular across the political spectrum, and increasingly popular with the public. All of this, combined with the recent passage of the Inflation Reduction Act of 2022 (IRA), indicates that the nuclear industry is entering a new era of significant growth and investment.
Where things get interesting is the question of ensuring there’s enough uranium supply to fuel the global reactor fleet. Having only recently exited a price slump that lasted an entire decade, the uranium mining sector is not ready for a major uptick in demand. More supply is needed soon.
There are a number of North American projects out there, but only a few with the economics, the stakeholder support, and the advanced status, to make it into production in good time.
Fission Uranium Corp. (TSX:FCU) (OTCQX:FCUUF) is a Canadian resource company focused on the development of its Patterson Lake South (PLS) uranium property, which is home to the class-leading Triple R uranium deposit.
PLS is located in the renowned Athabasca Basin uranium district, and the Triple R is the only existing major, high-grade deposit in the region found at shallow depth – a distinct advantage when it comes to construction time, reduced technical risk and competitive cost.
The company recently announced the results of a Feasibility Study (FS) on the Patterson Lake South Property conducted by third-party engineering expert Tetra Tech Canada Inc. The results confirm PLS as one of the world’s top uranium projects both economically and environmentally.
These impressive FS results support the strong economics outlined in the 2019 pre-feasibility study (PFS). Highlights include a 10-year mine life, a significantly higher after-tax NPV of $1.204B at an 8% discount, and a higher after-tax IRR of 27.2% while maintaining a very low OPEX of $13.02/lb.
Furthermore, initial CAPEX is marginally lower (2%) than the PFS, totaling $1.155 billion – an exceptional achievement given current global inflation. The findings support the PLS project’s economic viability and low environmental impact. With nuclear energy and the uranium sector growing year after year, Fission Uranium is in an excellent position to continue developing PLS through the environmental assessment and licensing stages and on into construction.
For more information on Fission Uranium Corp. (TSX:FCU) (OTCQX:FCUUF) and its PLS project, please visit this link or the company’s website.
SOURCE Fission Uranium Corp. (TSX:FCU) (OTCQX:FCUUF)
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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding Fission Uranium Corp.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Fission Uranium Corp.’s industry; (b) market opportunity; (c) Fission Uranium Corp.’s business plans and strategies; (d) services that Fission Uranium Corp. intends to offer; (e) The Oregon Groups milestone projections and targets; (f) Fission Uranium Corp.’s expectations regarding receipt of approval for regulatory applications; (g) Fission Uranium Corp.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Fission Uranium Corp.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Fission Uranium Corp.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Fission Uranium Corp.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) Fission Uranium Corp.’s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) Fission Uranium Corp.’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Fission Uranium Corp. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Fission Uranium Corp.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Fission Uranium Corp.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Fission Uranium Corp.’s business operations (e) Fission Uranium Corp. may be unable to implement its growth strategy; and (f) increased competition.
Except as required by law, Fission Uranium Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Fission Uranium Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Fission Uranium Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.
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