As the only carbon-free, scalable energy source available 24 hours a day, nuclear energy could be ideal for dealing with climate change. In the wake of Bill Gates recent activity (Gates is the chairman of nuclear reactor design company Terrapower) and the US government’s interest in once again becoming a world leader in nuclear energy, it has certainly been a conversation starter lately. The Trump Administration is seeking $1.5BN over 10 years to buy uranium from US mines and shore up a domestic stockpile as it looks to redress a supply imbalance. Related Reading Compare Share Trading PlatformsWhich shares are best for first time investors?Your guide to online share brokers in Australia Interestingly, 20 new nuclear reactors are scheduled to come online and over ten reactors are expected to be constructed per year between 2020 and 2030. Several analysts predict we are entering a bull market. This is great for investors, but there are still doubters. So let’s have a look at the pros and cons. The pros. The Intergovernmental Panel on Climate Change has said that over 80% of the world’s electricity will have to go “low carbon” if global warming is to be kept below the 2°C Paris agreement target, set in 2018. The Uranium industry is ready to step in. The tsunami that triggered the Fukushima nuclear disaster was a tragic accident, but technology has made uranium production safer. Fukushima accounted for approximately 13% of uranium demand before this disaster, with uranium still considered by many to be a viable alternative. “Nuclear power is a clean, efficient, and essential source of electricity used to meet the world’s growing energy demands,” said Global X analyst Chelsea Rodstrom in a recent note. “Nuclear power can produce electricity at a greater scale while minimising greenhouse gas emissions.” The International Atomic Energy Agency (IAEA) claims roughly 10% of the world’s electricity was generated from nuclear power in 2019 – approximately one-third of the world’s low-carbon electricity. The cons. The Fukushima and Chernobyl disasters will never be forgotten. These were tragic events that exacted an enormous toll on humanity and we shouldn’t forget them. Any talk of nuclear would have to address the safety issues that have arisen in the past, including the issue of waste storage. Then there is the question of weapons proliferation. What investors should be looking for. Concerns surrounding using nuclear energy as a clean energy source are legitimate, but the safety aspects look to have drastically improved with waste product minimised. As such, activity in the sector is ramping up, which is good news for investors. ETF Trends reports, ‘the uranium market has been supported by significant production cuts, reductions in producer inventories and an increase in demand. Investors may be looking at the battered uranium miner space as a value play, given the improved strength in the sector.’ Meanwhile, MarketsInsider illustrates the significant rise in uranium prices that has been underway since the pandemic began. Uranium is up to a stable $34 from $24 per pound of U3O8 over the past year. Australia’s mainline uranium mines in South Australia have resumed operations, with mines in Western Australia also preparing to resume operations. Factor in US activity and the industry looks to be moving forward at a rate of knots. 3 stocks to watch. GTi Resources (ASX: GTR) GTi Resources is moving to rapidly advance its uranium and vanadium projects in Utah and is looking at the potential to supply high-grade uranium ore to help fill existing mill processing capacity in the US. The company is just a truck drive away from Energy Fuels Inc. (NYSE American: UUUU; TSX: EFR), owner of the White Mesa uranium and vanadium processing plant in Utah, which currently has no supply contract in place and not enough pounds in the ground to fill its mill capacity. GTi Resources is also looking for value accretive opportunities to expand its US project portfolio in this space and sees US government support for US domestic uranium producers as potentially ‘game changing’. The $18.8 million capped company’s share price has risen 350 per cent since 24 April. Peninsula Energy (ASX: PEN) Peninsula is another that could benefit from activity in the US. The company is currently the only one operating in the US that is authorised to use the low pH in-situ recovery method and is currently focusing on completing a low pH field demonstration. The company has been in hibernation since COVID-19 presented itself, however with over $4 million cash in hand, it is only a matter of time before it advances the low pH de-risking and optimisation program. Boss Resources (ASX: BOE) Boss is up almost 20 per cent since late April. Located in South Australia and with a market cap of $105 million, the company bills itself as Australia’s next uranium producer. Its Honeymoon mine is one of only four Australian mining operations of scale to have a uranium export permit and the company has fast tracked production, within 12 months, with low capital outlay to seize on the growing demand for uranium. This update is not financial advice. 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